The SAVE Plan Is Ending: What Your New Student Loan Payment Will Be

Why is the SAVE plan ending?

SAVE (Saving on a Valuable Education) never fully launched. An 8th Circuit Court of Appeals ruling blocked key parts of the plan in 2024, and the Department of Education placed roughly 8 million enrolled borrowers into an interest-free forbearance while the litigation played out. The One Big Beautiful Bill Act, signed into law on July 4, 2025, settled the question by eliminating SAVE outright — along with the PAYE and ICR income-driven plans — and replacing them with a single new plan called the Repayment Assistance Plan (RAP).

The forbearance protection ended first. Interest has been accruing on SAVE balances since August 1, 2025, even though monthly payments stayed paused. Now the second shoe is dropping: servicers began notifying individual borrowers starting July 1, 2026, and each borrower gets a 90-day window from the date of their personal notice to pick a new repayment plan.

When do I actually have to switch plans?

There isn't one hard deadline for every borrower — notices are staggered. The Department of Education has said the earliest any borrower will be moved off SAVE is September 29, 2026, and the last notices are expected to go out by March 2027, which pushes the final switch date for some borrowers to around late May 2027. Check your loan servicer's portal or mailed notice for your specific 90-day window rather than assuming a single nationwide cutoff.

Source: U.S. Department of Education press release on SAVE plan next steps; Forbes reporting on servicer notice timing (June 29, 2026).

What happens if I miss my 90-day window?

You get auto-enrolled — no application needed, and no choice either. Borrowers who don't actively select a new plan within their 90-day window are defaulted into the Standard Repayment Plan or the new Tiered Standard Plan, and monthly billing resumes immediately once the window closes. That matters because roughly half of all SAVE enrollees had a $0 monthly payment under the plan's income protections. For those borrowers, missing the deadline can mean going from paying nothing to owing hundreds of dollars a month, with no income-based ceiling on the new bill.

How is the new Repayment Assistance Plan (RAP) calculated?

RAP replaces SAVE, PAYE, and ICR as the federal government's income-driven repayment plan going forward, and it's available to all borrowers starting July 1, 2026. Instead of a single percentage of discretionary income, RAP uses a tiered formula based on adjusted gross income (AGI): payments start at a $10 monthly minimum for the lowest incomes and rise in steps up to 10% of AGI for higher earners, with a $50-per-month reduction for each dependent. Unlike SAVE, RAP never drops to a $0 payment — even the lowest-income tier owes at least $10 a month.

The tradeoff is time. RAP forgives any remaining balance only after 30 years of qualifying payments, longer than every other current federal repayment plan. For borrowers with high balances relative to income, that longer horizon plus a minimum payment floor can make RAP the most expensive IDR option over the life of the loan, even though the monthly payment looks manageable.

How does the Tiered Standard Plan compare to RAP?

The Tiered Standard Plan is a fixed-payment option, not an income-driven one. Your monthly payment is set based on your total federal loan balance at the start of repayment and stays the same for the full term — it doesn't adjust if your income changes, and there is no forgiveness at the end of the term. You simply pay off principal and interest on a fixed schedule.

Source: CollegeLens and CNBC reporting on Tiered Standard Plan terms effective July 1, 2026.

Because the term length is tied to your balance rather than your income, the Tiered Standard Plan tends to suit borrowers with smaller balances and stable, higher incomes — people who can comfortably absorb a fixed bill and want certainty over a shorter payoff window, rather than a payment that stretches out for decades.

Is Income-Based Repayment (IBR) still an option?

For some borrowers, yes. IBR survived the One Big Beautiful Bill Act's elimination of PAYE, ICR, and SAVE, but eligibility now depends on loan timing. If your federal loans were first disbursed before July 1, 2026, you can elect IBR any time before July 1, 2028. IBR caps payments at 10% of discretionary income for borrowers whose first loan was taken out on or after July 1, 2014, and 15% for borrowers with older loans, with forgiveness of any remaining balance after 20 or 25 years, respectively. Borrowers whose first loan disburses on or after July 1, 2026 are not eligible for IBR at all — RAP is their only income-driven choice.

• RAP — income-based payment (1%-10% of AGI, $10 minimum), 30-year forgiveness, available to everyone.
• IBR — 10% or 15% of discretionary income, 20- or 25-year forgiveness, only for borrowers with loans disbursed before July 1, 2026, must elect by July 1, 2028.
• Tiered Standard Plan — fixed payment based on balance, 10 to 25-year term, no forgiveness, no income adjustment.

How do I decide which plan to switch to?

Compare the actual dollar payment each formula produces against your current income and balance rather than picking based on the plan name alone. If your income is low relative to your debt, RAP or IBR will likely produce a smaller monthly payment than a fixed Tiered Standard bill — but confirm you're eligible for IBR first, since loan-disbursement timing determines access. If your balance is small and your income is stable, a fixed Tiered Standard payment may pay off the loan faster and with less long-run interest than a 30-year RAP timeline. Whatever you choose, act inside your 90-day window: auto-enrollment removes the choice and starts billing immediately.

Frequently asked questions about the SAVE plan ending

When does the SAVE plan officially end?

SAVE was already blocked from full implementation by an 8th Circuit Court of Appeals ruling, and the One Big Beautiful Bill Act, signed July 4, 2025, eliminated it in law along with PAYE and ICR. Servicers began sending borrowers individual 90-day switch notices starting July 1, 2026, with the last notices expected by March 2027. The earliest any borrower is moved off SAVE is September 29, 2026; the last will be pushed off by roughly May 2027.

What happens if I don't pick a new repayment plan in time?

You get auto-enrolled in the Standard Repayment Plan or the new Tiered Standard Plan, and billing resumes immediately once your 90-day window closes. Roughly half of SAVE enrollees had a $0 monthly payment, so for many borrowers this means going from paying nothing to owing hundreds of dollars a month with no income-based cap.

What is the Repayment Assistance Plan (RAP)?

RAP is the new income-driven repayment plan created by the One Big Beautiful Bill Act, available starting July 1, 2026. Monthly payments are based on adjusted gross income, starting at a $10 minimum and rising in tiers up to 10% of AGI, minus $50 per month per dependent. Remaining balances are forgiven after 30 years of qualifying payments — the longest timeline of any current federal plan — and RAP never drops to a $0 payment the way SAVE could.

How does the Tiered Standard Plan work?

The Tiered Standard Plan, available July 1, 2026, sets a fixed monthly payment based on your total federal loan balance: 10 years for balances under $25,000, 15 years for $25,000-$49,999, 20 years for $50,000-$99,999, and 25 years for $100,000 or more. Payments don't adjust for income, and there is no loan forgiveness — you pay off the full balance plus interest over the term.

Can I still use Income-Based Repayment (IBR) after SAVE ends?

Yes, but only if your federal loans were first disbursed before July 1, 2026, and you elect IBR before July 1, 2028. IBR caps payments at 10% of discretionary income for post-2014 borrowers (15% for older loans) and forgives remaining balances after 20 or 25 years. Borrowers whose first loan disburses on or after July 1, 2026 cannot use IBR — RAP is their only income-driven option.

Has interest been accruing on my SAVE forbearance balance?

Yes. The interest-free forbearance that protected SAVE borrowers ended August 1, 2025 — interest has been accruing on those balances since then even though monthly payments stayed paused. That's separate from the repayment-plan switch: your balance may already be larger than when SAVE forbearance started, regardless of which plan you move to next.

Which repayment plan should I switch to from SAVE?

It depends on your balance, income, and how close you are to forgiveness under an existing plan. Borrowers with low income relative to their debt often come out ahead on RAP or IBR, since both cap payments as a share of income; borrowers with a smaller balance may pay it off faster, with more certainty, on the Tiered Standard Plan despite no forgiveness. Run your numbers under each formula, using a tool like our Loan EMI Calculator , before your 90-day window closes rather than defaulting to auto-enrollment.

Data sources: U.S. Department of Education, “Next Steps for Borrowers Enrolled in the Unlawful SAVE Plan” (transition timeline, auto-enrollment policy). Congressional Research Service, “Direct Loan Program: Student Loan Repayment Plans” (RAP, IBR, and Tiered Standard Plan formulas and eligibility). All fixed-payment figures independently verified against our Loan EMI Calculator. Analysis by the staff at accurate.software.