Important Announcement

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans.

Important Updates

Saving on a Valuable Education (SAVE) Plan Recertification Dates Extended

If you're enrolled in the SAVE Plan, there's good news. MOHELA, following guidance from the U.S. Department of Education, has extended your deadline to recertify your income-driven repayment (IDR) plan. No action is needed. Watch for communication on your new recertification date.

For the latest information on the SAVE Plan, visit StudentAid.gov/save.

Income-Driven Repayment (IDR) processing

A federal court issued an injunction changed how ED can implement certain parts of IDR plans. Because of these changes, the U.S. Department of Education has instructed federal student loan servicers to deny IDR applications where "lowest monthly payment" was selected, more than one IDR plan was selected, or an IDR plan was not selected. Visit Studentaid.gov/loan-simulator to review your options and apply for an eligible repayment plan.

Saving On A Valuable Education (SAVE) Plan Administrative Forbearance

In July 2024, a federal court injunction blocked parts of the SAVE Plan. As a result, eligible federal student loans were placed in forbearance with a 0% interest rate. During this forbearance interest had not accrued; therefore, loan balances (including principal and interest) have not increased during this forbearance. You will not have to make payments until the SAVE forbearance ends. In February 2025, a second federal court injunction ended the SAVE 0% interest rate. To comply with this injunction, loan(s) in the SAVE Administrative Forbearance began accruing interest on August 1, 2025.

You can view your interest rate, outstanding interest amount, or make payment toward interest via your online account. For more information, view our FAQs!

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Total and Permanent Disability Discharge

If you are unable to work because of a total and permanent disability, or are a veteran who is unable to work due to a service-related disability, you may qualify to have your federal student loans discharged. To learn more about TPD Discharge, eligibility requirements, how to apply or check the status of your application, please contact the Nelnet Total and Permanent Disability Servicer.

Tax Implications if Your Loans are Discharged

As a result of a change in tax law, loan balances that are discharged due to TPD are not considered income for federal tax purposes if you receive the discharge during the period from January 1, 2018, through December 31, 2025. If you qualify for a TPD discharge based on documentation from the VA, the date you are considered to have received the discharge for tax purposes is the date that we approve the qualify for a TPD discharge based on documentation from the Social Security Administration or a physician's certification, the date you are considered to have received the discharge for tax purposes is the completion date of your three-year post- discharge monitoring period.

If you receive a Form 1099-C, you should keep the form for your records, but you do not need to include it when filing your federal tax return. For additional information, visit irs.gov  this link will open in a new window .

The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.