Millions of federal student loan borrowers who were enrolled in the Biden-era SAVE plan are running out of time to choose a new way to repay. The U.S. Department of Education says about 7.5 million borrowers are affected, and those who do not act within their servicer’s window will be moved automatically into a standard plan, which could raise monthly payments.

How SAVE came to an end

The Saving on a Valuable Education plan, known as SAVE, was repeatedly blocked by courts. According to the Education Department, a court approved a settlement with the State of Missouri that ended the plan. Under that settlement, no new borrowers can enroll in SAVE, pending applications are being denied, and all current SAVE borrowers are being moved into repayment plans the department considers legal. The department has estimated that SAVE would have cost taxpayers more than $342 billion over 10 years.

The 90-day clock

Beginning July 1, 2026, federal loan servicers started sending notices telling SAVE borrowers to leave the plan and enroll in another one within 90 days. Each servicer sets the specific deadline for each borrower, which means the cutoff for many borrowers falls around October. Borrowers can contact their servicer at any time to switch earlier.

Borrowers who do nothing will be placed in either the Standard Repayment Plan or the new Tiered Standard Plan. Student loan experts have noted that standard plan payments can be unaffordable for some households and generally do not count toward loan forgiveness, including Public Service Loan Forgiveness in most cases.

The options on the table

The Education Department and student loan analysts describe several paths:

  • Income-driven repayment plans: Borrowers can apply for a legal income-driven plan, such as Income-Based Repayment, which generally sets payments at 10% to 15% of discretionary income. The department says applying is faster if borrowers consent to have it obtain tax information directly from the IRS.
  • Repayment Assistance Plan (RAP): Launched July 1, RAP bases monthly payments on income and number of dependents. Reporting from The College Investor and the Student Loan Planner indicates the minimum payment is $10 a month, interest beyond the required payment is waived, and up to $50 of the payment goes toward principal. Payments count toward PSLF, though borrowers not pursuing PSLF face a 30-year term before any forgiveness.
  • Tiered Standard Plan: Also new as of July 1, it offers fixed terms of 10, 15, 20 or 25 years depending on the total loan balance. Borrowers with higher balances get lower monthly payments over longer terms.
  • Standard Repayment Plan: The default placement for borrowers who do not choose.

Rules for new and consolidating borrowers

Analysts at Student Loan Planner note that anyone who consolidates federal loans or takes out a new federal loan on or after July 1, 2026, loses access to several older options, including Income-Based Repayment and the legacy standard, extended and graduated plans. Their choices are RAP or the Tiered Standard Plan, and the limits apply to the entire federal balance, including older loans. Borrowers weighing a consolidation to switch plans may want to understand that trade-off first.

What borrowers can do now

  • Log in to StudentAid.gov and the loan servicer’s website to find the notice and the exact deadline.
  • Confirm that contact information is current so notices and reminders are received.
  • Compare estimated monthly payments under each available plan using the loan simulator on StudentAid.gov.
  • Consider whether the borrower works in public service, since the choice of plan can affect eligibility for PSLF credit.
  • Avoid missing payments, since delinquency and default can follow if bills come due and go unpaid.

Public service rules also changing

Student Loan Planner also reported that new PSLF employer rules took effect in July, allowing the Education Department to disqualify employers found to engage in activities with a “substantial illegal purpose.” Multiple lawsuits challenging the rules were pending as of mid-June, and the borrower’s recourse would be limited if an employer were disqualified. Borrowers working toward forgiveness may want to monitor developments.

The transition also comes as other older plans are being phased out. Reporting indicates the Income-Contingent Repayment and Pay As You Earn plans are scheduled to be phased out in 2028.

A closer look at the stakes

For many SAVE borrowers, the plan had offered low or even zero monthly payments, and loans had been placed in forbearance while litigation played out. The move to a new plan means many will face real bills again, in some cases for the first time in more than a year. Consumer finance advocates have urged borrowers to read servicer notices carefully and to avoid assuming that the default placement will fit their budget.

This article is for informational purposes only and does not constitute personalized financial advice. Borrowers should confirm details with their loan servicer and official federal resources.

Sources: U.S. Department of Education, The College Investor, Student Loan Planner, WCAX/InvestigateTV.