pause forced – A new filing asks a federal judge to stop the automatic transfer of millions of student-loan borrowers off the SAVE plan after the Trump administration eliminated it in March. The motion targets a July 1 transition timeline and asks the judge to block forced m
By the time borrowers start seeing notices from their student-loan servicers, the clock will already be running.
A law firm is now asking a federal judge to intervene before that happens—seeking to pause the forced transfer of millions of student-loan borrowers off SAVE, the income-driven repayment plan that the Trump administration eliminated in March.
The latest step came Tuesday night, when Public Goods Practice filed a motion in a US District Court seeking to block borrowers enrolled in SAVE from being automatically moved to a new, more expensive repayment plan while a broader lawsuit continues.
The underlying case was filed in March and challenges the Department of Education’s decision to eliminate SAVE. The Biden-era plan reduced monthly payments and shortened the timeline for debt relief.
In its motion, Public Goods Practice argues that legal procedure requires the department to make the benefits of REPAYE—a precursor to SAVE—available to borrowers. The motion also requests pausing forced transfers to a new plan while the lawsuit proceeds.
A Department of Education spokesperson disputed the motion’s merits. The spokesperson recommended that borrowers enroll in “a lawful repayment option,” specifically the new Repayment Assistance Plan, which is set to become available on July 1.
The transition is scheduled to begin on July 1 in a way that could quickly reshape borrowers’ monthly obligations. Borrowers currently enrolled in SAVE would begin receiving notices from their servicers on their 90-day timeframe to transfer to a new plan.
If they do not switch voluntarily, the motion says those borrowers would be automatically placed in the standard repayment plan or the new tiered plan—both characterized in the filing as the most expensive options.
Austin Hinkle, a managing partner at Public Goods Practice, said the effort is aimed at stopping the transfer before the deadline approaches.
“Once borrowers start getting transferred over, injuries for lots of borrowers could start to happen right away,” Hinkle said, referring to the higher monthly payments borrowers would face under the new repayment plans.
The timing has also drawn pressure from lawmakers. Democratic lawmakers previously pushed the Department of Education to give borrowers more time to transition to a new plan. In an April letter. they wrote that “borrowers deserve to have the time. critical information. and support necessary to successfully enroll in another affordable repayment plan and continue to pay down their loans.”.
student loans SAVE plan REPAYE Department of Education Repayment Assistance Plan federal court borrowers income-driven repayment loan servicers