Attention SAVE Plan Borrowers: It’s Time to Switch Your Student Loan Repayment Plan

If you are currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan, you need to be aware of an important, and potentially faster-than-expected, change to your student loan status.

While the SAVE plan was originally scheduled to sunset in July 2028 as part of the Budget Reconciliation Act, a new proposed settlement with the state of Missouri, announced on December 9, 2025, could end the SAVE plan much sooner – in the next few months! 

What Does This Mean for You?

The Department of Education's proposed settlement, which is pending court approval, states that all current SAVE borrowers will be moved to an "available" repayment plan, likely another Income-Driven Repayment (IDR) plan.

The key takeaway is that you have an opportunity to choose your new plan before one is automatically selected for you. Now is the time to be proactive and explore your options!

Action Plan: If You’re Seeking Loan Forgiveness

Your current status as a SAVE borrower means your loans are likely in a forbearance period. The crucial detail is that time spent in this forbearance does not count toward loan forgiveness.  

You must switch out of the SAVE repayment plan into an alternate Income Driven plan to continue progress toward Public Service Loan Forgiveness (PSLF) or Income Driven Loan Forgiveness (IDLF).

Some borrowers pursuing forgiveness may choose to stay in SAVE forbearance for affordability reasons until automatically switched. Keep in mind, you will have payments due in the coming months, so it’s important to explore your options and prepare financially. 

If you’re pursuing PSLF, you may have the opportunity to buy back the SAVE forbearance after 10 years of qualifying employment (there is no buyback for IDLF). However, PSLF buyback requires a large lump sum payment and may not be affordable, so we recommend saving now. If you’re not able to afford PSLF buyback, you can work longer while making payments in the future to receive loan forgiveness under PSLF.  Borrowers pursuing IDLF who choose to remain in SAVE forbearance will need to  make income-driven payments for longer.

Next Steps: 

1. Use the Loan Simulator on the Federal Student Aid website, studentaid.gov to estimate your payments on a new plan. 
2. Compare your potential monthly payments under the other Income Driven Repayment plans:
   • Income Contingent Repayment (ICR)
   • Income Based Repayment (IBR)
   • Pay As You Earn (PAYE)
3. Switch to the plan with the lowest payment using the Income Driven Repayment Plan Application on studentaid.gov. 

If You’re Not Seeking Loan Forgiveness

If forgiveness isn't your main goal, or if you prefer a different structure, you should still explore and compare your options now.

• Whether you want to pay off your loans faster or need the lowest possible payment, the Loan Simulator will show you what’s available.

• To switch to an Income Driven Repayment (ICR, IBR or PAYE), use the Income Driven Repayment Plan Application. 

• To switch to the Standard, Graduated, or Extended plans, you will need to contact your loan servicer directly.

Financial Hardship and Repayment Plans 

• When it comes to Income Driven repayment plans, both PAYE and IBR have traditionally required you to demonstrate a “partial financial hardship”.
• In other words, if your income is high relative to your student loan debt, historically you may not qualify for PAYE or IBR and you would need to choose ICR. 
• Big change! The Budget Reconciliation Act is removing the "partial financial hardship" requirement for the IBR plan.

But! The Department of Education's Loan Simulator has not been updated to reflect the new IBR eligibility.

So even if the Loan Simulator currently says you are not eligible for IBR, you can still apply for it. The Department of Education will hold your application until their systems are updated and they can process it.

Don't Wait for an Automatic Switch

The Department of Education has not announced a final deadline for the transition, but borrowers will only have a limited time to make a selection once the settlement is approved. 

If you don't choose, you may automatically be placed in a plan, which may not be the best choice for your financial goals or forgiveness progress.

Act now! Go to studentaid.gov to use the Loan Simulator to know your options.  

If you have Tuition.io: our student loan coaches are available to help you choose the best repayment plan and navigate the process. Log in to Tuition.io to schedule a 1:1 with a coach.

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