Student Loan Updates for 2025
Repayments Are Back—Here’s How to Prepare, Save, and Possibly Qualify for Forgiveness
2025 is shaping up to be a pivotal year for federal student loan borrowers. Payments have resumed, and with them come revised federal repayment plans, evolving forgiveness options, and new tools that could change your monthly obligations—and long-term financial picture.
One of the biggest updates: The new SAVE Plan (Saving on a Valuable Education) replaces REPAYE and offers more generous income-driven repayment terms. For eligible borrowers, monthly payments could be as low as $0, and forgiveness could come faster, especially for those with smaller original loan balances.
Key facts to know:
- Under SAVE, your payment is based on a smaller percentage of your discretionary income (5% for undergraduate loans).
- Forgiveness may occur after 10, 20, or 25 years, depending on your loan type and repayment plan.
- The Public Service Loan Forgiveness (PSLF) program continues to offer full loan discharge after 10 years of qualifying payments for eligible professionals.
Action Steps:
- Log into studentaid.gov and verify your loan types and balances.
- Re-certify your income and family size annually if using an IDR plan.
- Update your contact info with your loan servicer to avoid missing communications.
- Review your eligibility for forgiveness programs like SAVE or PSLF.
- Create a monthly repayment strategy that aligns with your broader financial goals.
Need help navigating it all? Schedule a consultation to build a personalized loan repayment strategy.