Is interest accruing during the SAVE forbearance?

Yes. Interest has been accruing on SAVE-plan loans since August 1, 2025, even though payments are paused, so balances grow while in the forbearance.

Do SAVE forbearance months count toward forgiveness?

No. Months in the SAVE administrative forbearance do not count toward IDR forgiveness or, on their own, toward PSLF. PSLF borrowers may be able to recover those months later through PSLF buyback if they had qualifying employment.

When does the SAVE forbearance end?

The SAVE forbearance is ending by September 30, 2026. Beginning July 1, 2026, servicers issue 90-day notices; borrowers who do not choose a new plan are placed on the Standard Repayment Plan.

SAVE wind-down · Act before Sept 30, 2026

The SAVE plan is over: what physicians on the forbearance should do now

SAVE is being eliminated, its forbearance is ending, and interest has been quietly accruing on your balance since August 2025. Here's the physician's action plan — and how to protect PSLF progress while you switch.

By the AttendingFi research team · Built from studentaid.gov and Dept. of Education announcements · Our methodology
Last updated June 2026

The one-line version: if you're parked in the SAVE forbearance, interest is growing your balance and no month is counting toward forgiveness. Don't wait for the auto-default — pick a new income-driven plan (for most physicians, capped IBR) before the September 30, 2026 cutoff.

1. What actually happened to SAVE

SAVE (the Saving on a Valuable Education plan) was the 2024 income-driven plan that replaced REPAYE with a more generous formula. It was challenged in court, blocked, and the 2025 federal law (the OBBBA) eliminates it entirely. While the litigation played out, enrolled borrowers were placed in an administrative forbearance — payments paused, but the plan frozen.

2. The two things that make sitting still expensive

Interest is accruing again. Since August 1, 2025, interest has been adding to SAVE-plan balances even though payments are paused. Every month in the forbearance, your balance grows.
No month counts toward forgiveness. Time in the SAVE forbearance does not count toward IDR forgiveness, and on its own does not count toward PSLF. So you're accruing interest and standing still on your 120-payment clock.

3. The deadline — and the trap if you do nothing

The SAVE forbearance is ending by September 30, 2026. Starting July 1, 2026, servicers begin issuing 90-day notices telling you to choose a new repayment plan. If you don't choose one, you can be automatically placed on the Standard Repayment Plan — a fixed 10-year payment that, on an attending income, can be far higher than an income-driven payment and that doesn't maximize PSLF. Don't let the default pick your plan for you.

4. What to switch to (the physician answer)

Because your loans pre-date July 1, 2026, you can still enroll in IBR, ICR, or PAYE — there's no enrollment cutoff for your existing loans. The Department of Education is steering SAVE borrowers toward IBR, and for physicians that's usually the right call too:

Capped IBR caps your payment at the 10-year Standard amount, which is typically much cheaper than RAP (1–10% of total income, no cap) once you're earning an attending salary — and lower qualifying payments mean more forgiven tax-free under PSLF.
IBR also dropped its partial-financial-hardship requirement in 2026, so more borrowers qualify.
RAP (the new plan) becomes available July 1, 2026 and waives unpaid interest — useful for some, but pricey for high earners. RAP vs IBR for physicians →

Run your exact numbers before you pick — the gap between RAP and capped IBR at a $400k+ income is often five figures over the life of the loan.

5. If you're pursuing PSLF, two moves matter most

Get back onto a qualifying IDR plan now so your 120-payment clock starts ticking again. Every month you stay in the forbearance is a month not counted.
Look into PSLF buyback for the forbearance months. If you had qualifying (nonprofit/government) employment during the SAVE forbearance, you may be able to convert those months into qualifying payments through buyback — once you have 120 months of qualifying employment and the buyback would complete forgiveness. As of March 31, 2026, buyback is priced using the IBR/PAYE/ICR formula (not the old SAVE formula), which usually makes it more expensive, so budget for it. How PSLF buyback works →

6. Your move-now checklist

Confirm you're actually on SAVE and in the administrative forbearance (check your servicer dashboard).
Decide PSLF vs. payoff/refinance on your real numbers — this drives which plan you pick.
Apply for IBR (or the plan your numbers favor) before the 90-day notice forces a Standard default. Don't wait for September 30.
If PSLF: re-certify employment, and flag the forbearance months for a future buyback evaluation.
Re-check after you switch — your first post-SAVE payment amount will be based on your latest income documentation.

These federal rules are still being implemented by the U.S. Department of Education and can change — verify your status and current deadlines at studentaid.gov and with your servicer. This is educational information, not individualized advice. See our disclosures.

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