The SAVE plan is ending. Borrowers enrolled in the SAVE plan for their federal student loans are starting to get notices that they have 90 days to switch into a new repayment plan. Watch this short webinar below on what you need to know about SAVE ending (run time: 12 minutes).
- SAVE is Ending
- When will I get my notice to switch?
- What should I do if I can’t afford payments in a new plan?
This webinar is brought to you by NCLC and the International Rescue Committee in Sacramento, with support from the California Department of Financial Protection and Innovation’s Student Loan Empowerment Network Project.
SAVE is Ending
Again, the SAVE plan is ending. Notices are being sent out now letting people know they have 90 days to switch to a new plan. Borrowers may be sent notices on different dates, and the 90-day period will start on the date of the notice, so borrowers will have different deadlines to change plans.
If you get one of these notices, you need to act quickly. If you don’t enroll in a different repayment plan by the end of your 90-day period, you will likely be placed in the Standard plan (or Tiered Standard plan if you took out any new loans or consolidated loans after July 1, 2026). Standard and Tiered Standard plan payments are based on your loan balance, not your income, and are often much higher than payments in SAVE or other income-driven repayment (IDR) plans.
For help choosing a new plan, use the Department of Education’s Repayment Calculator tool and see here for more information about choosing a repayment plan. You can apply for a new IDR plan online at studentaid.gov/idr.
When will I get my notice to switch?
These notices are being sent in waves. Some borrowers have already received them, but others have not yet. If you’re still on the SAVE plan, you need to pay close attention to any notices you get from your servicer. Check your email, your mail, and your inbox on your online account with your servicer.
From what we have heard, the notice you get won’t tell you an actual date to switch plans. Instead, it will just say you have 90 days from the date of the notice to switch, so you may have to do some math to figure out your deadline. If you get multiple notices with different dates, you should go by the earliest date to be on the safe side. Even if you miss the deadline and are switched to a standard plan, you can still apply for an IDR plan later.
You do not have to wait until you receive your notice to switch plans. You can switch plans now if you are ready. Switching soon might be a good choice if you want to make progress on paying down your loan or earning credit toward loan forgiveness in Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR).
What should I do if I can’t afford payments in a new plan?
If you realize you cannot afford a new plan, you have options.
First, you can request to switch plans again. Use the Repayment Calculator or call your servicer to see whether there is another plan you can afford or that makes more sense for your financial situation.
Second, if you cannot afford your payment in any plan, you can request a temporary forbearance. A forbearance will temporarily stop your payments and keep your loan from becoming delinquent or defaulting. But forbearances have downsides. There are limits on how long you can be in forbearance, and interest will continue to be charged to your loan while in forbearance — so how much you owe will increase. Forbearances are a temporary fix, not a long-term solution, but they can buy time to figure out how you’ll manage your loans while preventing your loan from going into default.
