SAVE Student Loan Borrowers Face 90-Day Deadlines to Switch Repayment Plans
Approximately 7.5 million borrowers formerly enrolled in the SAVE student loan repayment plan are receiving staggered notices from loan servicers requiring them to switch to a new plan within 90 days. Borrowers who miss the deadline will be automatically placed into a standard repayment plan, which may result in higher monthly payments.
Approximately 7.5 million student loan borrowers formerly enrolled in the SAVE repayment plan are receiving notices from loan servicers requiring them to switch to a new plan, following the court-ordered termination of the SAVE program in March 2026.
Loan servicers began distributing notices on July 1, 2026, in staggered waves. Once a borrower receives a notice, they have 90 days to select an eligible repayment plan. If no action is taken within that window, the borrower receives a final 30-day notice. Failure to act by the final deadline results in automatic enrollment in a fixed-payment plan, typically the Standard Repayment Plan or the Tiered Standard Repayment Plan, which can lead to higher monthly payments.
Borrowers may switch to a different plan before receiving a formal notice or before their specific 90-day deadline expires. Available options include the new Repayment Assistance Plan, which launched July 1, 2026, and features payments based on 1 to 10 percent of adjusted gross income. Income-Based Repayment, Pay As You Earn, and Income-Contingent Repayment plans remain available to eligible borrowers, though PAYE and ICR are scheduled to end no later than July 1, 2028.
Borrowers who were placed in involuntary forbearance during the litigation period leading up to the plan's closure did not accumulate credit toward Public Service Loan Forgiveness or income-driven repayment discharge. Some borrowers may be eligible for a PSLF buyback to reclaim credit for those months if they meet specific criteria, including 120 months of approved public service employment.
Experts recommend that borrowers use the official Loan Simulator on StudentAid.gov to compare repayment options and verify that their contact information is current with their loan servicer to ensure they receive transition notices. The 2027-28 FAFSA also opened on October 1, 2026, and experts advise early submission to maximize potential grant and scholarship opportunities.
