A court order ended the SAVE plan in March 2026, so if you were enrolled you must choose a different student loan repayment plan. Your loan servicer sends a notice, and you have 90 days from that notice to choose. If you don't, you get a final 30-day notice, and then you are placed in a fixed-payment plan, which may cost more each month. Servicers will notify every SAVE borrower before the end of 2026.
Key takeaways
- A court order ended the SAVE plan in March 2026. Borrowers who were enrolled must choose a different repayment plan that they are eligible for.
- You have 90 days from your servicer's notice to choose. A final 30-day notice follows, and after that you are enrolled automatically.
- If you don't choose, you land in the Standard Plan (or the Tiered Standard Plan for loans made on or after July 1, 2026). Tiered Standard payments don't count toward PSLF.
- The Repayment Assistance Plan (RAP) charges 1–10% of your adjusted gross income, divided by 12, with a $10 monthly minimum and a 30-year term.
- Borrowers who sign up for auto pay by December 31, 2026 get a 1% interest rate reduction through June 30, 2028.
If you had federal student loans in the SAVE plan, you can’t stay there anymore. A court order ended it in March 2026, and every borrower who was enrolled has to pick a different plan.
The rule that matters most is the clock. You get 90 days from your servicer’s notice, and if you let it run out, the government picks a plan for you. Here is how it works and what to compare.
Why did the SAVE plan end?
SAVE, short for Saving on a Valuable Education, was an income-driven repayment plan. That means your monthly payment was based on your income. Federal Student Aid says a court order ended the plan in March 2026, so borrowers must now select another plan they are eligible for.
You don’t need to do anything if you were never enrolled in SAVE. The same goes if you are still in school, in a grace period, or took out a loan on or after July 1, 2026 that hasn’t entered repayment.
How long do I have to choose?
Your loan servicer, the company that bills you, contacts you with details. Most people get an email. If you asked not to get digital messages, the notice comes by mail.
Servicers started sending notices on July 1, 2026, and they send them in groups. Two people with the same servicer can have different deadlines. Servicers will notify every SAVE borrower before the end of 2026.
Once you get your notice, you have 90 days. Federal Student Aid gives this example: a notice sent July 1, 2026 meant a deadline of September 29, 2026. To find your date, check your servicer’s website inbox or search your email for “You Have 90 Days to Select a New Repayment Plan.”
| Step | What happens |
|---|---|
| Servicer sends notice | Your 90-day clock starts |
| Day 90 passes with no choice | Servicer sends a final 30-day notice |
| Final 30 days pass with no choice | You are enrolled in a fixed-payment plan automatically |
The 90 days run from your servicer’s notice, not from any separate email from Federal Student Aid.
What happens if I do nothing?
You are enrolled automatically. Which plan depends on when you got your loans:
- No loans made on or after July 1, 2026: the Standard Repayment Plan.
- A loan made on or after July 1, 2026 that has entered repayment: the Tiered Standard Plan.
Federal Student Aid warns that either payment may be higher than on an income-driven plan. If you’re on auto pay, the amount taken from your bank account goes up too. Your servicer must tell you the new amount at least 21 days before the first due date.
There is a second catch. Payments under the Tiered Standard Plan don’t count toward Public Service Loan Forgiveness (PSLF), the program that cancels loans after 120 qualifying payments while working for a government or nonprofit employer. If you’re pursuing PSLF, apply for a plan that counts instead of waiting to be placed.
Which plans can I choose from?
It depends on your loan types and when each loan was paid out. Log in to StudentAid.gov to see yours. Loans made before July 1, 2026 can use these plans:
| Plan | Monthly payment | How long |
|---|---|---|
| Repayment Assistance Plan (RAP) | 1–10% of adjusted gross income, divided by 12; minus $50 per dependent; $10 minimum | 30 years |
| Income-Based Repayment (IBR) | 15% of discretionary income (10% for new borrowers) | 25 years (20 for new borrowers) |
| Standard | Fixed | 10 years |
| Extended | Fixed or graduated | 25 years |
| Graduated | Starts low, rises about every two years | 10 years |
RAP is open to Direct Loans made at any time. IBR covers Direct and FFEL loans made before July 1, 2026. Two older plans, ICR and PAYE, are also listed but end no later than July 1, 2028. Parent PLUS loans can’t use RAP, even if consolidated.
One RAP perk: if you make full, on-time payments and your payment doesn’t cover the interest that builds each month, you get an interest subsidy. You may also get a matching principal payment.
What would the payment look like?
This is an illustration, not a quote. Your rate, balance and income will differ.
Say you owe $40,000 at an assumed 6.5% interest rate and land in the 10-year Standard plan. The payment is about $454.19 a month. Over 120 months that is $454.19 × 120 = $54,503, which means about $14,503 in interest.
Now compare a RAP payment. With an adjusted gross income of $48,000, the formula’s range is $48,000 × 1% ÷ 12 = $40 at the low end and $48,000 × 10% ÷ 12 = $400 at the high end, before the $50-per-dependent reduction. Where you land in that range depends on your income. The point: an income-based plan can cost much less per month than a fixed plan, but a longer term can mean more interest overall.
Federal Student Aid says to compare before you switch. A lower payment spread over more years can cost more in total and can push back the date you’d qualify for forgiveness.
Do my past payments still count?
Payments you made before the SAVE forbearance stay. Changing plans doesn’t remove qualifying PSLF payments or credited income-driven payments from before.
Time spent in the SAVE forbearance doesn’t count toward PSLF or income-driven forgiveness. If you have 120 months of qualifying employment, you may be able to buy back certain months spent in an ineligible deferment or forbearance, including SAVE’s.
What to do now
- Find your notice. Look in your servicer’s website inbox and your email for the subject lines above. Note the date and count 90 days.
- Confirm your loans. Log in to StudentAid.gov and check each loan’s type and the date it was paid out.
- Compare plans. Use the Repayment Calculator with your account logged in so it imports your loans. Then test totals in our student loan calculator.
- Check your budget. Put the new payment into our budget calculator before you pick.
- Apply. Choose “Apply” for the plan and finish the application. For income-driven plans, apply at StudentAid.gov/idr. Letting the IRS share your tax information speeds it up and lets the plan renew itself each year.
- Set up auto pay. Eligible borrowers enrolled by December 31, 2026 get a 1% interest rate reduction through June 30, 2028.
- Can’t afford it? Ask your servicer about a deferment or forbearance. Interest can still add up.
Help from your federal loan servicer is free. You never have to pay a company to apply for a plan or manage your federal loans.
This article is general information, not personal financial advice. For decisions about your own money, consider talking with a qualified professional.
Frequently asked questions
What happened to the SAVE plan?
A court order ended the Saving on a Valuable Education (SAVE) plan in March 2026, according to Federal Student Aid, the Education Department office that runs federal student loans. Because the plan ended, borrowers who were in it must choose another repayment plan they are eligible for. Your loan servicer contacts you with the details and your deadline.
How long do I have to choose a new repayment plan?
You have 90 days from the date of the notice your servicer sends you. For example, a notice sent July 1, 2026 meant a deadline of September 29, 2026. Servicers send notices in groups, so people with the same servicer can have different deadlines. Check your servicer's inbox or your email for the subject line to confirm your date.
What happens if I don't choose a plan?
After the 90 days, your servicer sends a final 30-day notice. If you still haven't chosen, you are enrolled automatically. If none of your loans were made on or after July 1, 2026, that is the Standard Repayment Plan. If you have a repaying loan made on or after that date, it is the Tiered Standard Plan. Payments may be higher than on an income-driven plan.
Do my past payments still count toward forgiveness?
Changing plans does not remove qualifying Public Service Loan Forgiveness (PSLF) payments or credited income-driven repayment payments you made before the SAVE forbearance. Time spent in the SAVE forbearance does not earn credit toward PSLF or income-driven forgiveness. People with 120 months of qualifying employment may be able to buy back certain months.
What if I can't afford the payment on my new plan?
Federal Student Aid says you can ask your servicer for short-term relief, which is a deferment or forbearance, to pause or lower payments for a while. Interest can keep adding up during that time, and it can affect forgiveness progress. Applying for an income-driven plan, whose payment is based on your income, is usually the first thing to compare.