Key Points
- If you are pursuing PSLF or IDR forgiveness, months in SAVE forbearance do not directly count and could delay your loan forgiveness.
- If you plan to repay your loans in full, remaining in forbearance likely increases your total cost.
- Short-term payment relief can feel helpful, but for most borrowers it slows progress and raises long-term costs.
When the SAVE plan was effectively sidelined and borrowers were placed into forbearance, it provided over 8 million borrowers with instant relief - no payment due, and no interest accruing.
But then, in August 2025, interest started accruing again. And time in this forbearance doesn't count towards IDR forgiveness, nor does it directly count for PSLF forgiveness (you have to do PSLF buyback - which is a big problem right now).
With these known issues - understanding your own goals for your student loans can help make your next decision easier. And that's where the SAVE Forbearance Decision Square becomes helpful.
The square is simple. It asks two questions:
- Are you pursuing forgiveness (such as PSLF or long-term income-driven repayment forgiveness)?
- Or are you planning to repay your loans in full?
Then it compares two choices:
- Stay in SAVE forbearance
- Switch to an active repayment plan
When you lay those out in a 2×2 grid, the math becomes much clearer.
Would you like to save this?
We'll email this article to you, so you can come back to it later!
For Those Pursuing Loan Forgiveness
If your goal is forgiveness (especially through the Public Service Loan Forgiveness program) staying in SAVE forbearance is almost always the worst outcome.
Under the rules of PSLF, only qualifying payments count toward forgiveness. Months spent in forbearance generally do not count. That means your forgiveness clock is paused.
For PSLF specifically, you can "buyback" these months. But the math of PSLF buyback is not going to give you any savings for these current months as the payment would be identical to what you should be paying anyway. Plus, when you do finally apply, you may experience up to a 3 year waitlist.
For borrowers pursuing 20- or 25-year IDR forgiveness, the same principle applies. If time does not count, you are extending your repayment period.
Some borrowers assume that because the SAVE plan is in flux, staying put is safer. But all you're actually doing is delaying your future.
Switching into an active repayment plan, even if the payment is modestly higher, keeps your forgiveness clock moving. Every qualifying month gets you closer to completion. You are buying certainty and momentum.
If forgiveness is your strategy, every month matters.
If Your Goal Is Full Repayment
Not everyone is pursuing student loan forgiveness. Many borrowers intend to repay their loans entirely.
For this group, the analysis is different but the conclusion is similar.
Remaining in forbearance means:
- Interest continues accruing.
- Your balance grows.
- You likely will pay more over the life of the loan.
Even if no payment is required today, the balance is still growing in the background.
Some borrowers think that staying in forbearance and making extra payments is helpful. And while it's not harmful, it's also not optimal. Payments are always applied to fees first, the accrued interest, then principal. So in many circumstances you're simply treading water instead of making forward progress.
Switching into a standard repayment plan restores amortization. Payments begin reducing principal rather than allowing interest to stack up.
This does not mean every borrower should immediately switch. If you are facing financial hardship, job instability, or other pressing needs, short-term cash flow protection may be the smart move.
But for borrowers with stable income, remaining idle can be more expensive than it appears.
No Loan Payment "Feels Good" - But Could Be Costly
Behavioral finance plays a large role here.
When borrowers hear “no payment required,” the immediate reaction is usually relief. It frees up money for rent, groceries, or other priorities. That is understandable.
But loans cost money, and have specific rules you need to follow to get forgiveness. Decisions made during temporary disruptions can ripple for years.
The SAVE Forbearance Decision Square forces you to zoom out. It replaces emotion with structure:
- If you pursue forgiveness, months must count.
- If you plan to repay, total cost must be minimized.
In both cases, forward motion is usually better than standing still.
The square does not say that forbearance is always wrong. It says that for most borrowers, it is simply not optimal to remain in forbearance.
The borrowers who benefit most from staying in forbearance are those who genuinely need short-term relief and cannot afford monthly payments right now. In that scenario, protecting stability may outweigh long-term optimization.
But that is a financial hardship decision — not a strategy decision.
The Questions You Need To Ask Yourself
Instead of blindly leaving your loans in the SAVE forbearance, you need to get clear on your goals, then do some math on which outcome gets you there:
- Does this month count toward my goal of loan forgiveness?
- Is my balance shrinking or growing?
- What would my payment be now, versus what would it be if I wait?
- What will my total amount of repayment be?
If your goal is forgiveness, you know you have a set number of payments and your goal is to ensure those payments are made at the lowest amount possible.
If your goal is repayment, ensuring you lower the total cost of repayment is what your focus should be.
SAVE forbearance can feel like protection. For many borrowers, it is simply delay. And the delay can have significant costs.
Before remaining in forbearance, decide which box you are in on the square. Then act in alignment with your long-term objective.
Common Questions
How could staying in SAVE forbearance delay my loan forgiveness timeline?
Time in the SAVE forbearance does not directly count for time-based loan forgiveness, and it would require PSLF buyback to qualify for PSLF - which has a 3 year backlog. Waiting will delay both of these things.
If I am pursuing PSLF, should I stay in SAVE forbearance or switch to an active repayment plan?
Most borrowers should switch to an active repayment plan to resume getting PSLF payment credits.
Does time in SAVE forbearance count toward IDR forgiveness?
No, time spent in SAVE forbearance does not count towards IDR forgiveness.
Does time in SAVE forbearance count toward PSLF forgiveness?
Not directly. Time spent in SAVE forbearance has to be "bought back" via the PSLF buyback program.
Don't Miss These Other Stories:
Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.