Student loan borrowers in Virginia may be facing unexpected financial harm due to errors in how loan servicers are implementing the Saving on a Valuable Education (SAVE) Plan.
The SAVE Plan was designed to provide meaningful relief by lowering monthly payments, preventing runaway interest, and creating a more manageable path to repayment. However, recent reports suggest that some servicers may not be properly following these requirements.
What the SAVE Plan Is Supposed to Do
Under the SAVE Plan, borrowers who make on-time payments should not see interest accrue beyond their payment amount. This was intended to fix a long-standing issue where balances continued to grow even when borrowers were making consistent payments.
For many borrowers, this protection is critical to keeping student loan debt from spiraling out of control.
Potential Errors by Student Loan Servicers
Kelly Guzzo, PLC is actively investigating major student loan servicers, including Aidvantage and MOHELA, for potential noncompliance with SAVE Plan requirements.
The investigation focuses on whether servicers are improperly charging interest during periods of forbearance and failing to correctly apply SAVE Plan protections. In some cases, this may also result in inaccurate loan balances being reported to credit bureaus.
How These Errors Can Impact Virginia Borrowers
When interest is applied incorrectly, the consequences can extend beyond just loan balances. Borrowers may see higher monthly payments and increased overall balances, making repayment more difficult.
These issues can also affect credit reporting. Because student loan data is often shared with credit bureaus, inaccurate balances may negatively impact a borrower’s credit profile and limit access to other financial opportunities.
What to Do If You Notice SAVE Plan Errors
If you are a Virginia borrower currently enrolled in—or previously enrolled in—the SAVE Plan and believe interest has been incorrectly added to your loans, you may have legal options. The attorneys at Kelly Guzzo, PLC are experienced in handling student loan servicing disputes and can assist with investigating errors, challenging improper charges, and pursuing compensation for financial harm.
We handle these matters on a contingency basis, meaning there are no upfront costs. We only recover if we obtain compensation on your behalf. If you believe your student loan balance has been inaccurately inflated under the SAVE Plan, contact Kelly Guzzo, PLC to learn more about your rights.