Borrowers File Amended Lawsuit Demanding Loan Forgiveness and Restoration of REPAYE as Education Department Prepares to Force Millions Off SAVE

FOR IMMEDIATE RELEASE

June 25, 2026

Contact:

Natalia Abrams

Email: natalia@studentdebtcrisis.org

WASHINGTON D.C. — On June 24, 2026, four student loan borrowers filed an amended complaint in federal court challenging the Education Department's elimination of both the Saving on a Valuable Education (SAVE) plan and its predecessor, the Revised Pay As You Earn (REPAYE) plan. The lawsuit argues that borrowers who reached their forgiveness threshold while enrolled in SAVE should receive immediate loan discharge, and that all other SAVE enrollees should be transferred to REPAYE, not forced onto more expensive repayment plans. The plaintiffs have also requested a preliminary injunction to temporarily block the Department's planned notifications of transition starting July 1st. The Education Department has filed a motion to dismiss. The Student Debt Crisis Center (SDCC) stands with the borrowers bringing this challenge and supports their pursuit of justice.

"The REPAYE plan should absolutely be available to all borrowers moved out of the SAVE plan," said Natalia Abrams, President and Founder of SDCC. “At the time they moved into SAVE, REPAYE borrowers were given no choice but to switch out of the plan, so it only makes sense that now they have the option to re-enroll in it. It’s a matter of fairness.”

If borrowers prevail, the stakes are significant. Those who already met their forgiveness threshold could see their remaining loan balances discharged entirely. All other SAVE enrollees could be moved to REPAYE — a more affordable income-driven plan — rather than being forced onto the Standard Repayment Plan, which typically carries the highest monthly payment. A successful injunction would also halt the SAVE plan transition altogether while the case is decided, giving millions of borrowers more time and more options. For borrowers who have spent years making payments toward forgiveness, a win in court could mean the difference between relief and years of additional debt.

This lawsuit comes as the Education Department prepares to begin notifying the millions of borrowers currently in SAVE forbearance that they have 90 days to select a new repayment plan, or be automatically placed in the Standard Repayment Plan — typically the most expensive option available. No court has issued an injunction pausing that timeline. Borrowers are being asked to navigate consequential financial decisions in a system that is already under serious strain: more than 530,000 borrowers remain in a backlog waiting to be enrolled in an income-driven repayment plan they have already applied for, more than 88,000 are waiting on PSLF buyback requests, millions of payment records are missing or inaccurate, and the Department has seen a 47% reduction in Federal Student Aid staff. These borrowers deserve justice, and SDCC will not stop advocating until they get it.

SDCC will continue monitoring developments in the litigation and providing updates and resources to the millions of borrowers affected by this transition. We urge the Department of Education to ensure that no borrower is penalized for delays, errors, or failures that are not of their making.

For more information, to schedule an interview, or to request additional data, please contact Natalia Abrams via email natalia@studentdebtcrisis.org.

###

ABOUT Student Debt Crisis Center

Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.