SAVE Plan Borrowers Face October Deadlines to Switch Student Loan Repayment Plans

Millions of student loan borrowers enrolled in the SAVE plan face deadlines in October 2026 to choose a new repayment plan. A court order ended the Saving on a Valuable Education plan in March 2026, and the Education Department has notified 7.5 million affected borrowers that they must switch.

Loan servicers began sending exit notices on July 1, 2026. Each borrower has 90 days from the date of their individual notice to choose a new plan. Because servicers sent notices in waves through October, deadlines vary by borrower. The first deadlines arrived September 29.

Borrowers who miss their deadline will be automatically moved to the standard repayment plan or the new tiered standard plan, depending on when their loans were disbursed. Payments under both plans are based on loan balance and a fixed repayment term rather than income, which could result in significantly higher monthly bills for borrowers who had low payments under SAVE.

Income-driven alternatives remain available. Income-based repayment and the new Repayment Assistance Plan both calculate payments based on income and number of dependents. Borrowers do not need to wait for a notice from their servicer to switch. They can compare options and submit a request at StudentAid.gov.

The Education Department also debuted a new resolution portal for borrowers in default and extended the deadline for student loan interest rate discounts, though experts noted a lack of transparency around some details of the extension.

The SAVE plan was created by the Biden administration as a more generous income-driven repayment option. It was challenged in court by Republican-led states, and a federal court blocked it from operating in March 2026.

Borrowers should act quickly. Once a servicer processes a new plan request, the SAVE forbearance ends immediately, even if the 90-day window is still open.