What’s Next for Borrowers on the SAVE Plan?

In March, a court ruling officially ended the SAVE plan, and the Department of Education has issued guidance for what borrowers can expect moving forward. Without action, SAVE borrowers are likely to be placed on high monthly payment standard or tiered standard repayment plans which may not qualify for loan forgiveness. Borrowers in SAVE who want to remain on an income-driven repayment plan should act now to avoid higher payments and processing delays.

The SAVE forbearance is ending soon

Over 7 million borrowers still have their payments postponed on the SAVE forbearance, a payment pause that started in July 2024 when the SAVE plan was blocked by a court order.

That forbearance is officially ending, and borrowers who don’t switch plans soon will be automatically moved into the Standard or Tiered Standard Repayment Plans — both of which often come with high monthly payments that many borrowers find unaffordable.

The Department of Education will send email notifications to borrowers in the SAVE plan starting July 1, 2026. Once you receive your notification, you’ll have 90 days to switch plans or your loans will automatically be moved to either the Standard Repayment Plan or the new Tiered Standard Plan. The Standard plans will likely require a much higher payment than the SAVE plan.

What are the alternatives to the Standard Repayment plans?

Consider your long-term goals before selecting a new plan.

Borrowers working towards Public Service Loan Forgiveness (PSLF) or Income-Driven Loan forgiveness

You’ll need to enroll in an income-driven repayment plan to make progress toward loan forgiveness. Remember, the SAVE forbearance has not counted toward loan forgiveness since July 2024. You’ll need to choose one of the income-driven repayment (IDR) plan options below:

• Income-Based Repayment (IBR) - available now & not being eliminated
• Pay As You Earn (PAYE) - available now & being eliminated July 1, 2028
• Income-Contingent Repayment (ICR) - available now & being eliminated July 1, 2028
• Repayment Assistance Plan (RAP) - available July 1st
• Keep in mind if you’re pursuing income-driven loan forgiveness and enroll in RAP it will be 30 years until forgiveness, regardless of your past progress. Many borrowers will no longer have a balance to be forgiven. Borrowers’ PSLF progress and timeline remain unchanged.

You can compare your payments using the loan simulator. For PSLF, choosing the IDR plan with the lowest payment will maximize the amount forgiven at the end of the program.

The PAYE and ICR plans will be eliminated on July 1, 2028. You can still enroll in these plans for now, but you’ll need to switch to a different plan before July 2028.

RAP plan: The loan simulator doesn’t show estimates for RAP yet, as this plan isn’t available until July 1, 2026. If you apply for a different IDR plan before July 1, 2026 and want to switch to RAP in the future, you can do so. It’s a good idea to reassess your options periodically, especially if your income changes, to ensure you’re still on the most affordable IDR plan.

Borrowers that can afford higher payments and want to pay off their loans quickly without loan forgiveness

The Standard Repayment Plan may be your best option. With fixed payments and a shorter term, you’ll pay less interest compared to most other plans. However, if you’re disciplined and want payment flexibility, you can choose a plan with a lower required monthly payment and pay extra each month to accomplish a faster payoff without the pressure of a high minimum payment.

The Graduated and Extended Plans may offer lower payments, but are more costly in terms of the total interest you’ll pay. These plans also don’t qualify for PSLF or Income-driven loan forgiveness.

Current and future borrowing: If you plan to borrow new federal loans (or consolidate your existing loans) after July 1, 2026, you’ll only have two repayment options: the Tiered Standard Plan and the RAP plan. If you’re working towards loan forgiveness or need low payments, consider your options carefully before borrowing new federal loans after July 1.

How do I apply to change plans?

You can switch to Standard, Extended or Graduated plans by calling your loan servicer and requesting the change.

To switch to one of the income-driven repayment (IDR) plans, you’ll need to complete an application where you’ll provide information about your income and family size. We recommend connecting to the IRS directly as part of your application. This helps with faster processing and allows for automatic annual renewals.

It may take weeks or months for your IDR application to be processed. Once processed, you’ll receive a notification from your loan servicer confirming your new payment amount for the next 12 months. Each year, your payment may increase or decrease based on changes to your income or family size.

Should I change plans now?

Yes, most borrowers will benefit from switching to a different plan sooner than later.

If you’re working towards loan forgiveness, changing plans now will allow you to start making progress towards loan forgiveness sooner.

If you’re concerned about affordability, exploring your options now will help ensure you have time to apply for a more affordable plan before your loans are placed in the Standard Plan.

If you’d prefer to keep your payments paused until your loans are automatically moved to the Standard Plan, you don’t need to take any action at this time. It’s a good idea to check with your servicer to confirm the amount you’ll need to pay on the Standard Plan, so you can budget for that payment.

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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