Some student borrowers in the Saving on a Valuable Education (SAVE) plan have been falsely informed by their respective student loan servicers that interest is accruing on their loans, even though they should be in forbearance and interest should not accrue. This is causing confusion and concern among borrowers. The DC Department of Insurance, Securities and Banking (DISB) wants borrowers enrolled in SAVE to be aware that they should be enrolled in a SAVE general forbearance and should NOT experience interest accrual.
No Interest Accrual
Borrowers currently enrolled in the SAVE plan should be in a SAVE general forbearance where monthly payments are not due, and interest is not accruing. Please note that other types of forbearances and some deferments may experience interest accrual. The 8th U.S. Circuit Court of Appeals issued an injunction preventing the U.S. Department of Education from implementing the SAVE Plan. Learn more about the SAVE court injunction here.
File a Complaint
DISB is actively engaging with student loan servicers concerning wrongful interest accrual for borrowers that should be in the SAVE general forbearance. Student loan borrowers have a right to receive prompt, accurate and complete information about their loans from their student loan servicer. If you have concerns regarding your student loans, you can file a complaint here or you can reach out to the Student Loan Ombudsman at 202.727.8000 or [email protected].