Millions of federal student loan borrowers who are still linked to the now-defunct SAVE plan need to take action soon as repayment rules are changing from July 1, 2026.
More than 300,000 borrowers have already exited the SAVE plan, but millions of others are still affected and could soon be moved to another repayment plan.
Borrowers who remain in SAVE are expected to hear from their loan servicers around July 1, after which they will get 90 days to choose a different repayment plan.
Experts advise borrowers to visit StudentAid.gov immediately and review available repayment plans before the automatic transition happens.
Borrowers should actively explore and apply for another income-driven repayment plan before the deadline, as they could lose access to some repayment options or end up paying more every month if they wait too long.
The Department of Education is also changing which repayment plans will be available after July 1, making it important for borrowers to understand their choices now.
New federal student loan borrowers will mainly have access to only two repayment plans, Standard Repayment Plan and Repayment Assistance Plan (RAP), starting July 1.
Monthly payments under RAP will generally range from 1% to 10% of a borrower's adjusted gross income, and borrowers who stay in RAP long enough may qualify for loan forgiveness after 30 years of repayment.
