Should You Stay in SAVE Forbearance? 5 Reasons to Stay and 1 Big Reason to Leave

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  • Should You Stay in SAVE Forbearance? 5 Reasons to Stay and 1 Big Reason to Leave
Author: Joseph Reinke, CFA

The government has once again extended SAVE forbearance, pushing the earliest repayment start date to December 2025. While this may sound like good news at first, itโ€™s important to understand the implications. Every month you stay in forbearance adds time to your repayment clock, which could mean yearsโ€”or even decadesโ€”of extra payments. For many borrowers, this delay in financial freedom is a significant drawback.

To be clear, this video and article is referencing those that are pursuing loan forgiveness. If you are paying off your loans then staying in SAVE forbearance makes since to take advantage of the 0% Rate. Also, if you are saving for another goal then it may also make since to stay in forbearance.

The Big Reason to Leave SAVE Forbearance

Letโ€™s get straight to the point: the number one reason to leave SAVE forbearance is that staying in it unnecessarily extends your repayment period. For borrowers who qualify for forgiveness programs or who simply want to become debt-free faster, every additional month in forbearance delays that goal. Starting repayment sooner means starting the clock on forgiveness or making progress toward paying off your loansโ€”and itโ€™s often the smarter financial move.

5 Reasons to Stay in SAVE Forbearance

That said, there are situations where staying in forbearance might make sense. At FitBUX, weโ€™ve worked with over 1,200 people in the past two months to determine whether staying or leaving is the right choice for them. Based on this experience, here are the top five reasons weโ€™ve identified for staying in SAVE forbearance:

Building an Emergency Fund

If you donโ€™t have 3-6 monthsโ€™ worth of expenses saved, now is the time to focus on building that safety net. Staying in forbearance can free up the cash flow needed to create financial stability and avoid relying on high-interest debt during unexpected emergencies.

Paying Off Credit Cards or Personal Loans

High-interest debts, like credit cards and personal loans, can drain your finances quickly. Staying in forbearance can allow you to redirect funds toward paying off these balances, putting you in a stronger financial position when loan repayments begin.

Paying Off High-Interest Car Loans

If you have a car loan with a high interest rate, tackling it during forbearance can save you thousands in the long run. Eliminating this debt now can also improve your monthly cash flow when student loan payments resume.

Youโ€™re Making Too Much to Qualify for Forgiveness Later

If your income disqualifies you from benefiting significantly from income-driven repayment plans, you might use the extra time to aggressively save or invest while in forbearance. This way, youโ€™ll be financially prepared when repayment begins.

Public Service Loan Forgiveness (PSLF) Buyback Opportunities

For borrowers pursuing PSLF, staying in forbearance might allow you to buy back qualifying months later. However, this option depends on specific factors and should align with a broader financial plan.

The Bigger Picture

Itโ€™s important to note that only one of these reasons directly involves student loans. The rest are tied to your overall financial health. This is exactly why I started FitBUX over 10 years ago. I saw how student loans affected peopleโ€™s ability to build emergency funds, pay off high-interest debt, and save for their futures. At FitBUX, our mission is to help you make strategic decisions that address your entire financial pictureโ€”and do so in an affordable way.

The key to deciding whether to stay in SAVE forbearance or start repayment now is to think strategically. Avoid the temptation to let forbearance be a “set it and forget it” decision. Instead, align your choice with a comprehensive financial management plan.

If youโ€™re feeling unsure about your next steps, weโ€™re here to help. FitBUX can walk you through your options to create a plan tailored to your unique situation.


Joseph Reinke, CFA

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About the Author

Joseph Reinke is a Chartered Financial Analyst (CFA) Charter Holder and founder of FitBUX which has helped over 14,000 young professionals on their journey to financial freedom. Joseph has been personally investing since he was 12 years old.

In addition, he has experience in student loans, mortgages, wealth management, investment banking, valuation, stock trading, and option trading. He has been on 100s of podcast and has been invited to 100s of universities to discuss financial planning with their soon to be graduates.

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