Key facts
- The first batch of student-loan borrowers must transition off the SAVE plan by September 29.
- Some borrowers attempting to apply for the Repayment Assistance Plan (RAP) have faced technical glitches.
- The Department of Education stated a paper application for RAP will be available later this week.
- Borrowers who do not select a new plan will be automatically enrolled in the standard plan.
- 1.5 million borrowers had left the SAVE plan as of September 14.
- Borrowers have until September 30 to enroll in autopay for an interest rate reduction.
The first group of federal student loan borrowers is facing a critical deadline this week to transition off the SAVE plan, a program that offered lower monthly payments. September 29 marks the first transition deadline for borrowers who were notified on July 1.
However, some borrowers attempting to apply for the recommended Repayment Assistance Plan (RAP) have encountered persistent technical issues, including indefinitely loading screens. Customer service representatives have reportedly attributed these problems to a "system glitch" and suggested submitting paper applications, which have not yet been updated to include RAP. The Department of Education stated that a paper application for RAP will be available "later this week" and indicated it is not aware of widespread technical problems.
Borrowers who fail to select a new repayment plan by their deadline will be automatically placed on the standard plan, which is generally the most expensive option. An ongoing lawsuit aims to prevent this mandatory transfer. As of September 14, 1.5 million borrowers had already left the SAVE plan. Some borrowers have yet to receive their transition notices, with servicers planning to send all remaining notifications by the end of 2026.
In addition to the SAVE plan transition, borrowers have until September 30 to enroll in autopay to receive a one-percentage-point interest rate reduction through June 30, 2028.