The U.S. Department of Education has started emailing borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan a second round of reminders (which we’re dubbing as “courtesy” notices) ahead of the formal transition emails set to start July 1, 2026.
Why it matters: Around 7 million borrowers are still sitting in SAVE forbearance after a federal court order killed the plan. Once a borrower’s servicer sends the official notice, a 90-day clock starts to pick a new repayment plan or the servicer will move the borrower into one automatically (likely the Standard Plan). Borrowers who still don’t resume payments will being the path towards default.
What The Notice Said
Here’s what the notice said to borrowers:
Our records show that you’re enrolled in the Saving on a Valuable Education (SAVE) Plan. As a reminder, a court order ended the SAVE Plan. You must select a new repayment plan, or your student loan servicer will move you into a different repayment plan.
In the coming months, your loan servicer will contact you about your specific deadline to choose a different repayment plan. Once you hear from your loan servicer, you’ll have 90 days to choose another repayment plan. This gives you time to select the plan that works best for you.
Our newest repayment plans—the Repayment Assistance Plan (RAP) and Tiered Standard Plan—will be available starting on July 1, 2026. Visit StudentAid.gov/bigupdates to learn more about these new repayment plans and other changes to the federal student aid programs.
If you don’t want to wait until July 1, 2026, you can choose a different repayment plan that fits your needs and goals now. Since our first email about the SAVE Plan ending, hundreds of thousands of borrowers have applied for a different plan.
If you are not enrolled in the SAVE Plan, did not submit an application for the SAVE Plan, already applied for a new repayment plan, or no longer have a balance on your federal student loans, you do not need to take any action.
Between the lines: It appears that the Department of Education is positioning this round of outreach as a soft warning before the formal 90-day countdown begins in July. Borrowers who wait until their servicer’s official notice arrives will have less time to compare options like IBR, RAP, and the new Tiered Standard Plan. Some borrowers may be blocked from plan like PAYE if they wait.
What to watch: July 1, 2026 is a big date: it’s the start of the official transition notices going out, and also when the two new repayment plans become available. Deadlines will stagger across borrower cohorts through the rest of 2026, with most borrowers expected to be back in active repayment by the end of September 2026. Our sources at the loan servicers have said that while the notices will be staggered, it’s likely that timeline will be “compressed”.
How this connects: The College Investor has tracked the SAVE transition since the court order ended the program. Our prior reporting on the SAVE forbearance ending lays out the 7 million borrower population, and our coverage of the 90-day auto-enrollment risk explains why borrowers shouldn’t ignore the courtesy email.
For readers weighing new repayment plan options, RAP and IBR will be the two most likely options. Borrowers should use a Student Loan Calculator and compare their choices now.
Bottom line: The courtesy email isn’t a deadline but it’s the likely one of the last warnings before the official deadline starts. Borrowers who pick a new plan now will have more control than those who wait for the formal notice.
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How The Repayment Assistance Plan (RAP) Works: Payments, Eligibility, And Forgiveness
$180 Billion in Student Loans Are Now in Default, New Federal Data Shows
Student Loan Repayment Assistance: Employers Offering SLRA
Editor: Colin Graves
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