If you were enrolled in the now-defunct SAVE plan, you need to choose a new repayment plan by the deadline in your loan servicer’s notice. If you don’t, you’ll be placed in a fixed-payment plan that could cost much more each month.
November 12, 2026
A court order ended the SAVE (Saving on a Valuable Education) plan in March 2026, leaving about 7.5 million enrolled borrowers to find a new plan, according to the U.S. Department of Education. Another 450,000 had expressed interest in enrolling when the Department announced the settlement that ended it.
If you signed up for SAVE, whether you were enrolled or only applied, don’t assume the plan still covers you. Choosing a new plan early gives you time to see your new payment and work it into your budget before the first bill arrives.
Here’s what the deadline means, how the new plans compare, and how to switch.
SAVE launched in 2023 as an income-driven repayment plan with lower payments than older options. Legal challenges and a new federal law ended it within a few years:
Congress had a goal beyond SAVE itself, according to Mark Kantrowitz, author and student aid expert: “part of the point of the OBBBA legislation was to reduce the number of repayment plans to just two.”
There’s no single nationwide deadline. Yours depends on when your servicer sent your notice. Servicers began sending notices in waves on July 1, 2026, and they’re still going out, so even two borrowers with the same servicer can have different deadlines. The U.S. Department of Education says every SAVE borrower should be notified by the end of 2026, though that isn’t guaranteed.
Once you get your notice, you have 90 days to choose a new plan. For example, a borrower notified on July 1, 2026, had until Sept. 29, 2026.
If you’re not sure your servicer contacted you, check these places:
Jonathan Sparling, vice president of strategic partnerships at the Private College 529 Plan, recommended two first steps:
From there, you can choose the plan that fits your situation and apply on StudentAid.gov or through your servicer.
Your 90-day window begins when your servicer notifies you that SAVE is ending. If you don’t select a new plan in that time, your servicer will send a final 30-day notice, according to Federal Student Aid.
If You Still Don’t Act
You’ll be placed in a plan automatically. Your payment will be based on your total balance, not your income, which often means a significantly higher monthly bill. Which plan you get depends on when your loans were paid out:
Your servicer must tell you your new payment amount at least 21 days before your first payment is due. If you use autopay, the new amount will be withdrawn automatically, so check that notice as soon as it arrives.
From My Experience: When I was paying back my federal student loans, I logged into my servicer’s portal and made extra payments applied to principal when I had extra cash, which helped me pay off my loans faster. If you’re working toward forgiveness, though, extra payments may not help, so check with your servicer first.
You can still switch to an income-driven repayment (IDR) plan at any time, without penalty. Beth Konecni, Director of Post-Secondary Counselors at Fusion Academy, calls a missed deadline “a setback, not a dead end.” Kantrowitz adds that “until you switch, you’ll have to make payments in your current repayment plan.”
If You Applied for SAVE but Were Never Enrolled
The rules are different. Your application was most likely denied, or will be. If you don’t choose another plan, you’ll go back to the plan you were on before you applied to SAVE.
Your options depend mainly on whether any of your loans were paid out on or after July 1, 2026. You can see your loan dates on your StudentAid.gov dashboard.
These plans set your payment based on your income and family size. For most former SAVE borrowers, the main choices are:
Borrowers with high loan balances relative to their income, who may struggle with fixed monthly payments, or who have fluctuating income “may benefit most from these plans,” Sparling said.
Two other plans, Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR), are open only if your loans were paid out before July 1, 2026. Both are being phased out and end on July 1, 2028, so if you choose one, you’ll have to switch again.
These plans set your payment based on how much you owe, not on your income.
If you took out a new federal loan or consolidated on or after July 1, 2026, you’re limited to RAP or the Tiered Standard Plan.
Both plans tie your payment to your income, but they work differently, and either way you should expect to pay more than you did on SAVE. According to Kantrowitz, “switching from SAVE to IBR can double or even triple the monthly student loan payment,” so compare before you choose.
Repayment Assistance Plan (RAP) | Income-Based Repayment (IBR) | |
|---|---|---|
How your payment is set | 1% to 10% of your adjusted gross income (AGI) | 10% or 15% of your income above a protected amount |
Dependents | $50 less per month for each dependent | A larger family means more of your income isn’t counted |
Minimum payment | $10 a month | Can be $0; varies |
Unpaid interest | Waived when you pay on time and in full | Can add to your balance over time |
Forgiveness | After 30 years of payments | After 20 or 25 years, depending on when you borrowed |
Sources: Edfinancial Services, Student Loan Borrower Assistance, Congressional Research Service
The two plans count your income differently:
In general, Konecni said, IBR “is often lower for borrowers with very low incomes or larger households, while RAP can come out lower for some single borrowers in the middle-income range.”
RAP may be a better fit if:
IBR may be a better fit if:
“Generally, either RAP or IBR will have the lowest monthly payment,” Kantrowitz said. But lowest isn’t always best: “In some cases RAP may yield a lower monthly payment, but the borrower will be in debt for longer.”
If you work for a government agency (including public schools and the military) or a qualifying nonprofit, these rules apply:
Student loan rules have changed several times since 2024, so check StudentAid.gov for the latest before you choose a plan.
You can switch plans for free. Here’s how:
If you can’t afford your new payment on any plan, ask your servicer about a short-term deferment or forbearance. These can bridge the gap, but interest may still accrue, so they aren’t long-term fixes. Falling behind could lead to default, which can hurt your credit and your ability to borrow for school in the future.
Big changes like the end of the SAVE plan attract scammers who target stressed, confused borrowers. They may call, text, or email, offering to “handle” your switch or promising fast forgiveness, usually for a fee.
In April, the Federal Trade Commission got a court order stopping an alleged scam. The FTC says the operators pretended to work with the Education Department or borrowers’ loan servicers, and collected at least $8.8 million in illegal upfront fees.
Common signs of a scam, based on expert interviews and the Consumer Financial Protection Bureau:
If your payment is rising, you may wonder whether to refinance with a private lender. With strong credit and steady income, refinancing may get you a lower interest rate, but it comes with a major trade-off.
“A private company that ‘consolidates’ federal loans is refinancing them into a private loan, and that’s permanent: you give up federal repayment plans and forgiveness options for good,” said Konecni.
If you refinance, you’d lose income-driven plans, PSLF, and federal options for pausing payments. If you’re sure you won’t need those protections, comparing refinance lenders shows what rates you might qualify for.
What happens if I don’t choose a new plan?
After your 90-day notice and a final 30-day notice, you’ll be placed in the Standard Repayment Plan or the Tiered Standard Plan, depending on when your loans were paid out. Your payment could be higher than on an income-driven plan.
Can I switch plans after I’ve been placed in one automatically?
Generally, yes. You can still apply for an income-driven plan through StudentAid.gov or your servicer. Until your new plan is processed, you’ll owe payments under the plan you were placed in.
Is RAP better than IBR?
Not for everyone. RAP may be a good choice if you have a growing balance, since it waives unpaid interest when you pay on time. IBR may cost less for some lower earners and can lead to forgiveness sooner. If you took out a loan on or after July 1, 2026, RAP is your only income-driven option. Compare your own numbers before you choose.
Does my time in the SAVE forbearance count toward forgiveness?
No. Months in the SAVE forbearance don’t count toward PSLF or income-driven forgiveness. If you work toward PSLF, you may be able to buy back some of those months later.
The SAVE plan is ending for every enrolled borrower, and the most important thing you can do is choose your next plan before one is chosen for you. Find your deadline in your servicer's notice, compare your options with your own numbers, and apply directly through StudentAid.gov or your servicer.
For many borrowers, the decision comes down to RAP or IBR. RAP offers more protection against a growing balance, while IBR may offer lower payments for some earners and a faster path to forgiveness. Whichever you pick, acting now can help you avoid a surprise jump in your monthly bill.
This guide was written by Maya Dollarhide, a personal finance writer who specializes in federal student loan repayment, income-driven repayment plans, and student loan forgiveness programs. Maya helps borrowers make sense of fast-changing federal loan rules and the deadlines that come with them.
Together with BestMoney’s rigorous editorial standards, this guide provides an unbiased, accurate, and practical roadmap to help you move off the SAVE plan and into a repayment plan that fits your budget.
Maya Dollarhide is a writer specializing in personal finance, with a special focus on student loans and debt consolidation and management. She has written for Yahoo Finance, Investopedia, Student Loan Hero, Bankrate, and other publications.
