Student Loan Borrowers Get 90 Days to Leave SAVE Plan

Federal student loan servicers started the clock in July 2026, giving borrowers enrolled in the SAVE plan 90 days to select a new repayment option. The SAVE plan is being phased out under the 2025 One Big Beautiful Bill Act, which overhauled federal student loan repayment.

The law replaced existing income-driven repayment plans with a new program called the Repayment Assistance Plan, or RAP. Borrowers who do not actively choose a new plan will be moved automatically, but servicers are urging borrowers to review their options before the deadline to avoid disruptions.

The RAP has faced technical problems since its launch. Servicers reported implementation challenges in the early weeks of July, with some borrowers unable to complete enrollment online. The Department of Education said it is working to resolve the issues.

Other changes took effect July 1 under the same legislation. The grad PLUS loan program ended for new borrowers. New borrowing limits apply to graduate and parent PLUS loans. The Department of Education also increased the interest rate reduction for borrowers enrolled in autopay from 0.25 percent to 1 percent for federal direct loans originating after July 1, 2012.

Borrowers on the new RAP face a specific risk: missing a payment can cause them to lose key benefits under the plan. CNBC reported in July that servicers are warning RAP enrollees to stay current on payments to protect their repayment terms.

Courts have complicated the rollout. Judges have blocked several administration efforts to restrict student loans, including an attempt to limit loans for graduate school borrowers and restrictions on the student loan forgiveness program. Legal challenges are ongoing.

Financial advisors are recommending that borrowers log into their servicer accounts, confirm their current plan status, and compare RAP terms against other available options before the 90-day window closes.