Key facts
- Some student-loan borrowers are receiving notices extending their deadline to transition off the SAVE repayment plan.
- Borrowers who received their initial notice to leave SAVE on or around July 1 have received a final 30-day notice.
- If borrowers do not select a new repayment plan within 30 days, they will be placed on the standard or tiered repayment plan.
- Conflicting deadlines and incorrect monthly bills have been reported by borrowers.
- Borrowers are concerned about falling behind on payments and facing consequences of default.
Student-loan borrowers transitioning off the SAVE income-driven repayment plan are receiving additional notices extending their deadline to select a new plan. The initial deadline for the first wave of borrowers was September 29.
A spokesperson for the Department of Education confirmed that borrowers who received their initial notice to leave SAVE around July 1 have been given a final 30-day extension. These borrowers must select a new plan within this period or face being automatically enrolled in the standard or tiered repayment plan, which are described as the most expensive options.
The department has not made a public announcement regarding an extension of the standard 90-day timeframe. The notices come amid ongoing confusion for borrowers following changes to repayment plans that took effect July 1. Some borrowers have reported receiving conflicting deadlines on their online portals and experiencing difficulties obtaining clear information from customer service, leading to concerns about financial budgeting and potential default.