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SAVE plan borrowers must pick a new repayment plan within 90 days of the notice from their loan servicer. Borrowers who do nothing are moved to a standard plan. The U.S. Department of Education says about 7.5 million borrowers were enrolled in SAVE when a court settlement ended the plan.
Key facts for SAVE plan borrowers
| Item | Detail |
|---|---|
| Borrowers enrolled in SAVE | About 7.5 million |
| Time to choose a new plan | At least 90 days from your notice |
| Default if you do nothing | Standard or Tiered Standard plan |
| Repayment Assistance Plan (RAP) payment range | $10 a month up to 10% of adjusted gross income |
| RAP dependent credit | $50 off the payment per dependent |
| RAP maximum term | Up to 30 years |
What the Education Department said
The department’s announcement on next steps says borrowers have at least 90 days to move to a plan that meets current law. Servicers tell each borrower the specific deadline. Borrowers can switch sooner by contacting their servicer.
Borrowers who miss the deadline are placed in the Standard Repayment Plan or the new Tiered Standard Plan. The department also says income-driven applications process faster when borrowers agree to let it get their tax information from the IRS.
Your deadline is personal
There is no single national date. Newsweek reported on September 25 that notices went out in waves, so each borrower’s 90 days started on a different day. Notices from MOHELA ran from July to October. Notices from Edfinancial ran from July 1 to August 15. Log in to your servicer account to confirm your date.
The plans available to SAVE plan borrowers
The Repayment Assistance Plan, or RAP, became available on July 1. Payments are based on adjusted gross income and the number of dependents. The minimum is $10 a month, and the maximum is 10% of adjusted gross income. Each qualifying dependent lowers the payment by $50 a month. The repayment period can last up to 30 years.
The Tiered Standard Plan uses fixed payments over 10, 15, 20 or 25 years, depending on how much you owe. The Standard plan uses fixed payments over 10 years for loans disbursed before July 1, 2026.
Income-Based Repayment, or IBR, sets payments at 10% or 15% of discretionary income, depending on when the loans were first taken out. Payments are capped at the 10-year Standard amount. A remaining balance may be forgiven after 20 or 25 years, depending on the borrower.
How to compare your options
The Federal Student Aid website has a Loan Simulator that estimates monthly payments and total cost under each plan. Newsweek notes that doing nothing can mean a higher monthly bill. Compare the simulator’s numbers before the deadline, since a plan that lowers the monthly payment can raise the total paid over time.
Three numbers are worth writing down for each plan. They are the monthly payment, the number of years you would pay, and the total cost over that time. A longer plan often lowers the monthly payment and raises the total.
What to do this week
SAVE plan borrowers can follow a short order. Start by finding your deadline in your servicer account. Then run the simulator for the plans you qualify for. If the choice is close, ask your servicer whether your loans qualify for each plan. Loans disbursed before and after July 1, 2026 can follow different rules.
Then fit the new payment into your monthly plan. The Jolt Journal’s guide on how to make a budget in one evening shows how to do that, and its comparison of budgeting apps lists tools that track a fixed payment.
Why the change happened
The SAVE plan ended after a court approved a settlement with Missouri. The department calls the plan unlawful in its announcement. It also estimates the plan would have cost taxpayers more than $342 billion over 10 years. The settlement is why SAVE plan borrowers now have to choose a new plan.
