The U.S. Department of Education has started sending notices to borrowers enrolled in the SAVE Plan that they will have 90 days starting July 1 to select a new repayment plan — or be moved automatically into the standard 10-year plan.
Roughly 7 million borrowers are still in SAVE forbearance, and many had $0 monthly payments under the plan. Auto-enrollment into Standard repayment could push monthly bills from nothing to several hundred dollars, often without warning.
Timeline
- July 1, 2026: Servicers begin issuing 90-day notices
- September 30, 2026: SAVE forbearance ends
- June 30, 2028: All borrowers on remaining legacy plans (PAYE, ICR) must move to RAP or IBR
*There are reports that there may be a staggered timeline and not all borrowers will see their SAVE forbearance end in September. However, no clear communication saying otherwise has been provided.
Available Repayment Plan Options: For now, borrowers can move to IBR, PAYE, or ICR. Starting July 1, all new federal loans will only have access to the tiered Standard plan or the Repayment Assistance Plan (RAP) created under the One Big Beautiful Bill Act. Existing borrowers on legacy income-driven repayment plans must transition to RAP or IBR by June 30, 2028.
Our Take: Borrowers should not wait for the 90-day notice. Calculating monthly payments under each available plan now (using the federal Loan Simulator at StudentAid.gov or The College Investor’s RAP calculator) is the difference between picking a plan that fits a household budget and being defaulted into one that does not.
How This Connects: The College Investor has covered the SAVE transition extensively, including how RAP compares to IBR, what to do if your servicer has not reached out, and why Senate Democrats are pushing to extend the transition window. With the federal loan portfolio set to move to the Treasury Department, the system handling these transitions is being rebuilt at the same time borrowers are being asked to navigate it.
Don’t Miss These Other Stories:
Repayment Assistance Plan (RAP) Student Loan Calculator
SAVE Plan Forbearance Ending: What To Know
5 Legal Ways To Lower Your Student Loan Payment
Editor: Colin Graves
The post SAVE Borrowers Have 90 Days After July 1 to Switch Plans appeared first on The College Investor.
