Robert Farrington

US Secretary of Education Linda McMahon prepares to testify before a House Subcommittee on Labor, Health and Human Services, Education, and Related Agencies hearing on the budget for the Department of Education, on Capitol Hill in Washington, DC on May 21, 2025. (Photo by Brendan SMIALOWSKI / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) AFP via Getty Images New data from the Department of Education shows that 7.7 million borrowers are now in default as of December 2025.

WASHINGTON, DC - FEBRUARY 13: Linda McMahon, President Donald Trump’s nominee to be Secretary of Education, testifies during her Senate Health, Education, Labor and Pensions Committee confirmation hearing in the Dirksen Senate Office Building on February 13, 2025 in Washington, DC. McMahon, the former head of World Wrestling Entertainment, is under fire as Trump has announced he plans to eliminate the Department of Education and pass its function to the states.

The SAVE Plan is effectively over thanks to a court ruling by the Eighth Circuit Court of Appeals. For the seven million borrowers in administrative forbearance, a choice is coming: when do you leave the SAVE plan and where do you go? The answer is going to depend on a few key factors: are you pursuing loan forgiveness, such as Public Service Loan Forgiveness (PSLF)? Are you looking to minimize your total payment obligation for long term loan forgiveness?