Student Loan Tracking Halted Amid SAVE Plan Dispute -

Student loans have once again entered uncertain territory as the Department of Education pauses payment tracking for income-driven repayment (IDR) plans. This unexpected move is linked to ongoing litigation over President Biden’s student loan relief efforts, especially the SAVE plan. For millions of borrowers, the inability to view their progress toward loan forgiveness has created confusion, frustration, and growing concern about their financial futures.

Why the Payment Tracking Has Been Paused

One of the largest federal student loan servicers, MOHELA (Missouri Higher Education Loan Authority), began notifying borrowers that their IDR forgiveness payment counts are temporarily unavailable. An automated message on MOHELA’s helpline now says, “Federal Student Aid has temporarily removed the forgiveness payment counts for income driven repayment. Unfortunately, our representatives do not have any additional information.”

MOHELA manages over 7 million federal student loan accounts and is one of several servicers contracted by the Department of Education. The temporary pause affects a significant portion of borrowers, particularly those relying on these counts to track progress toward loan forgiveness.

Legal Challenges to the SAVE Plan

The pause comes amid lawsuits challenging Biden’s Saving on a Valuable Education (SAVE) plan. Introduced in 2023, the plan promised to lower monthly payments by capping them at 5 percent of income, making repayment more manageable and paving a faster road to forgiveness.

However, Republican attorneys general from multiple states argued that the plan was too generous and burdens taxpayers. In February, a federal court issued an injunction blocking the SAVE plan and certain aspects of other IDR plans. As a result, the Education Department took down IDR applications from its website and directed servicers to stop displaying payment progress.

Experts Say Confusion Is Growing

Betsy Mayotte, president of the Institute of Student Loan Advisors, noted that this move has caused “a lot of confusion and anxiety” among borrowers. She explained that because the court blocked the full regulatory package tied to the SAVE plan, the Department of Education can no longer count certain periods of deferment or forbearance from February onward. This led to the removal of the tracking system.

Mayotte added, “They had to take the counter down either to wait out the litigation or to reprogram it so it doesn’t reflect the blocked deferments and forbearances.”

Students and Borrowers Left Without Clarity

Alyssa Dobson, director of financial aid at Slippery Rock University, described the situation as “mass chaos and confusion.” She said her former students, now repaying their loans, cannot find accurate information about their progress toward forgiveness—especially for public service programs.

“Right now, their loan servicer, the one they rely on, doesn’t have the answers. That’s very stressful,” she said. Dobson emphasized that students made life decisions based on plans they believed would be available and dependable, and now that certainty is gone.

What Borrowers Can Still Access

The Department of Education clarified that while IDR payment counts are temporarily down, Public Service Loan Forgiveness (PSLF) payment counters remain visible on StudentAid.gov. PSLF allows eligible public-sector workers to have their loans forgiven after 120 monthly payments.

Borrowers logging into their accounts will see a banner stating:

“A federal court issued an injunction preventing the implementation of the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans. As a result, your IDR payment count and payment history are temporarily unavailable.”

Moving Forward

As the legal battle over the SAVE plan unfolds, the Department of Education has announced that interest will begin accruing again for SAVE plan participants from August 1. However, the interest won’t be charged retroactively.

For now, borrowers are urged to rely only on verified information from StudentAid.gov, stay in touch with university financial aid offices, and consult with legal advisors when needed. While the tracking pause may be temporary, the uncertainty it brings is very real for millions navigating the U.S. student loan system.