The SAVE repayment plan has been eliminated. Beginning July 1, 2026, the U.S. Department of Education says servicers will give borrowers a limited window to choose a new plan — and those who don't act may be moved into a Standard or Tiered Standard plan with substantially higher monthly payments.
Following recent court action, the SAVE plan was terminated and roughly 7.5 million borrowers must move to a different repayment plan. According to the U.S. Department of Education, starting July 1, 2026, servicers begin sending notices that give each borrower a 90-day window to enroll in a legal repayment plan.
Borrowers who do not transition within that window will be automatically enrolled into the Standard Repayment Plan or the new Tiered Standard Plan — which generally carry higher monthly payments than income-driven options. New plans, including the Repayment Assistance Plan (RAP), also become available July 1.
Source: U.S. Department of Education ↗Depending on your loan type and status, one of these may also affect you.
The Department of Education resumed collections on defaulted federal loans on May 5, 2025, ending the pause that began in March 2020. Borrowers in default may face wage garnishment, tax-refund offsets, added fees, and continued credit damage.
Source: U.S. Department of Education ↗To keep access to income-driven repayment and forgiveness, Parent PLUS borrowers may need to consolidate into a Direct Consolidation Loan before the July 1, 2026 cutoff. Because consolidation can take 30–90 days, the Department suggests applying early — waiting may permanently limit options.
Source: Reporting on Dept. of Education guidance ↗Many borrowers haven't reviewed their loans in years and don't realize these changes are already in effect. A quick review can tell you which plan you're in, what's changing for you, and what to do before the deadlines pass.
Get a free review →These changes are already in motion. Inaction can mean higher payments and lost options — often without any warning you'd notice.
The federal rules keep changing. We help you navigate the deadlines, applications, and recertification requirements — so you don't have to figure it out alone.
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📞 Call Now: (844) 560-7522The updates on this page are drawn from official U.S. Department of Education announcements and reputable reporting. We encourage you to read them directly.