Borrowers Rush to Find New Plan After SAVE Program Ends
A federal appeals court ended the Saving on a Valuable Education (SAVE) student loan repayment plan, forcing millions of borrowers to pick a new repayment option this year. The U.S. Department of Education has already started telling borrowers that the plan no longer exists and that they must act.
About 7.5 million federal student loan holders currently enrolled in SAVE must choose another plan before the end of their 90-day deadline, which begins July 1, 2026. If borrowers do not decide, servicers will automatically place them into a repayment plan based on their financial situation.
The federal government will offer several alternatives. Borrowers can switch to the Repayment Assistance Plan (RAP), which calculates monthly payments based on income and family size. Borrowers may also choose Income-Based Repayment (IBR), a standard repayment plan with fixed monthly amounts, or other income-driven options available under current law.
Loan servicers will begin sending transition notices in July and borrowers will have 90 days from the date of their notice to sign up for a new plan. The Education Department urges borrowers to act early and contact their servicer to explore the best repayment option.
Advocates and policy experts say this shift creates uncertainty. Many borrowers had relied on SAVE for lower monthly payments and a faster path to loan forgiveness, especially those with low incomes or pursuing Public Service Loan Forgiveness.
Officials stress that borrowers should verify income information and explore repayment plans now rather than waiting. Acting sooner gives borrowers more control over their monthly payments and can prevent surprises when repayment resumes later this year.
