- About 7.5 million SAVE plan borrowers must select a new legal repayment plan, per the U.S. Department of Education โ SAVE itself was struck down in court and is being formally wound down.
- Loan servicers began sending individual 90-day deadline notices starting July 1, 2026, putting most borrowers' cutoff around late September 2026 (widely reported as September 30).
- Miss your deadline and you're automatically enrolled in the Standard Repayment Plan or the new Tiered Standard Plan โ both fixed, not income-based.
- Interest has been quietly accruing on SAVE balances since August 1, 2025; the average affected borrower has been accruing an estimated $3,500/year (~$300/month) in extra interest, per the Student Borrower Protection Center.
- A new income-driven option, the Repayment Assistance Plan (RAP), launched July 1, 2026, alongside Standard, Tiered Standard, and (temporarily) IBR, ICR, and PAYE.
Why the SAVE Plan Is Ending
The SAVE (Saving on a Valuable Education) plan, introduced in 2023 as an income-driven repayment option, was blocked by federal courts and has been under legal challenge ever since. Rather than continue defending it, the Department of Education is formally winding SAVE down and transitioning its roughly 7.5 million enrollees to other legal repayment plans. Many of these borrowers have effectively been in payment-free forbearance since mid-2024 while the litigation played out โ but that grace period is now ending on a fixed schedule.
The Deadline: What's Actually Happening
Starting July 1, 2026, loan servicers began sending SAVE borrowers individual notices, each giving 90 days to choose a new repayment plan. Because most notices went out at the start of July, that puts the effective deadline for the bulk of borrowers in the last days of September 2026 โ widely reported in the press as September 30, though your own exact date depends on when your servicer's notice was sent, and it's worth checking your loan servicer account directly to confirm yours.
If you don't actively select a plan within your 90-day window, the Department of Education will automatically place you in either the Standard Repayment Plan or the new Tiered Standard Plan โ both use a fixed monthly payment based on your balance, not your income. For many former SAVE borrowers, that means a payment jump with no advance warning of the exact amount.
Your Repayment Plan Options Now
SAVE borrowers transitioning out have several legal repayment plans to choose from:
- Repayment Assistance Plan (RAP) โ a brand-new income-driven plan that launched July 1, 2026 (see below for how it's calculated).
- Standard Repayment Plan โ a fixed payment amortized over 10 years, regardless of income.
- Tiered Standard Plan โ also new for 2026, offering fixed terms of 10, 15, 20, or 25 years depending on your total loan balance.
- Income-Based Repayment (IBR) โ an existing income-driven option that remains available.
- Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) โ still temporarily available, but being phased out; borrowers using these will need to switch again before July 2028.
How the New Repayment Assistance Plan (RAP) Works
RAP is the closest replacement to SAVE for borrowers who want an income-based payment. Instead of a percentage of "discretionary income," RAP uses your adjusted gross income (AGI) in $10,000 brackets:
| Annual Income (AGI) | Monthly Payment |
|---|---|
| Under $10,000 | $10 minimum |
| $10,001 โ $20,000 | 1% of AGI |
| $20,001 โ $30,000 | 2% of AGI |
| $30,001 โ $40,000 | 3% of AGI |
| $40,001 โ $50,000 | 4% of AGI |
| ... | +1% per $10,000 bracket |
| $100,001+ | 10% of AGI (capped) |
Borrowers also get a $50/month reduction per dependent claimed on their taxes, and if your required payment doesn't fully cover the interest accruing that month, the shortfall is waived rather than added to your balance โ a meaningful protection against runaway growth. RAP also offers Public Service Loan Forgiveness (PSLF) eligibility at 120 qualifying payments (10 years), or forgiveness after 360 payments (30 years) for those not in public service.
Take a borrower with a $40,000 balance and $45,000 in annual income, no dependents. Under RAP's $40,001-$50,000 bracket (4% of AGI), that's roughly $150/month. Under the fixed 10-year Standard Plan at a typical 6% interest rate, the same $40,000 balance amortizes to roughly $444/month โ nearly three times as much. This is a simplified example using published RAP brackets and standard loan amortization math, not a specific reported case; your own numbers will vary. Run your real balance and rate through our Student Loan Calculator to see your own comparison.
The Interest That's Already Been Piling Up
Even before this payment deadline, SAVE borrowers took a quieter hit: interest resumed accruing on SAVE plan balances starting August 1, 2025, after being frozen during the litigation. The Student Borrower Protection Center estimated that the average affected borrower was accruing roughly $3,500 more per year โ about $300 per month โ in interest during that forbearance period, even though no payments were required yet. For many borrowers, that means today's balance is already meaningfully higher than what they last saw on a bill.
๐ See Your Real Monthly Payment
Before your 90-day window closes, plug in your loan balance, interest rate, and a repayment term to see what your payment could look like under Standard, Tiered Standard, or an income-driven plan.
Use the Student Loan Calculator โWhat to Do Before Your Deadline Hits
- Find your exact deadline. Log into your loan servicer's website or check your mail/email for the 90-day notice โ don't assume September 30 applies to you specifically.
- Compare RAP, IBR, Standard, and Tiered Standard using your actual income and balance before picking, since the "safest-sounding" option isn't always the cheapest.
- Rebuild your monthly budget now around your likely new payment, rather than being surprised when the first bill arrives.
- If you're pursuing PSLF, confirm which plans count toward your 120 qualifying payments before switching, since not every plan qualifies equally.
- Don't let the 90 days lapse by default. Auto-enrollment into a fixed plan is the single most avoidable outcome here โ it only happens if you don't act.
If a higher student loan payment is squeezing a budget that also includes credit cards or other loans, our Debt Payoff Calculator can help you prioritize what to pay down first using the avalanche or snowball method.
Frequently Asked Questions
1. What is the SAVE student loan plan deadline?
Loan servicers began sending SAVE borrowers 90-day notices starting July 1, 2026, giving most a deadline around late September 2026 (widely cited as September 30) to select a new repayment plan. The exact date depends on when your individual notice was sent.
2. How many borrowers are affected by the SAVE plan ending?
Approximately 7.5 million borrowers were enrolled in the SAVE plan and must transition to a different legal repayment plan, according to the U.S. Department of Education.
3. What happens if I miss the SAVE plan deadline?
If you don't select a new plan within your 90-day window, you'll be automatically enrolled in either the Standard Repayment Plan or the new Tiered Standard Plan, both of which use fixed monthly payments rather than income-based ones โ often substantially higher than what SAVE borrowers were paying.
4. What repayment plan options are available now that SAVE is ending?
Options include the new Repayment Assistance Plan (RAP), the Standard Plan, the new Tiered Standard Plan (fixed 10, 15, 20, or 25-year terms based on balance), and existing Income-Based Repayment (IBR). Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) remain temporarily available but are being phased out, with those borrowers needing to switch again before July 2028.
5. How is the new Repayment Assistance Plan (RAP) payment calculated?
RAP payments are based on adjusted gross income in $10,000 brackets: $10/month minimum under $10,000 income, 1% of AGI for $10,001-$20,000, 2% for $20,001-$30,000, and so on up to a 10% cap for income above $100,000. Borrowers also get a $50/month reduction per dependent claimed, and any unpaid interest above the required payment is waived rather than added to the balance.
6. Has interest already started accruing on SAVE plan balances?
Yes. Interest resumed accruing on SAVE plan balances on August 1, 2025, after being frozen during litigation. The Student Borrower Protection Center estimated the average affected borrower was accruing about $3,500 more per year (roughly $300/month) in interest during that forbearance period, even before payments resumed.
