The SAVE Student Loan Plan Has Ended — Here's What Borrowers Do Next
The SAVE (Saving on a Valuable Education) income-driven repayment plan has officially ended following a court-approved settlement. According to the U.S. Department of Education, loan servicers began notifying the more than 7.5 million borrowers enrolled in SAVE starting July 1, 2026, directing them to choose a new legal repayment plan.
Borrowers get a 90-day window, but reporting from Forbes indicates no one will be forced off SAVE before September 29, 2026 at the earliest, since notices are going out in staggered batches. Anyone who doesn't act will be automatically placed into the Standard Repayment Plan or the new Tiered Standard Plan, both of which generally carry higher monthly payments than income-driven options.
In SAVE's place, the Department of Education has launched the Repayment Assistance Plan (RAP), a new income-driven option available to all federal Direct Loan borrowers as of July 1, 2026. Under RAP, monthly payments are based on income and dependents, with forgiveness after 30 years of qualifying payments — longer than most previous IDR plans.
Existing income-driven plans (IBR, PAYE, and ICR) remain available for now for borrowers whose loans all predate July 1, 2026, though PAYE and ICR are scheduled to close by mid-2028. Before you switch, compare your options carefully at studentaid.gov — and see what else you might qualify for with the Benefit Trim Score.