Key facts
- Student loan borrowers enrolled in the SAVE plan are receiving notices to switch to a new repayment plan.
- The SAVE plan was eliminated as part of a settlement announced by the Trump administration.
- Borrowers have a 90-day window to select a new plan, with transitions happening in waves.
- Some borrowers may have until May 2027 to switch off the SAVE plan.
- The new Repayment Assistance Plan (RAP) became available on July 1.
Student loan borrowers who were enrolled in the Saving on a Valuable Education (SAVE) repayment plan are now receiving notifications to switch to a new plan. This transition is a result of a settlement that eliminated the SAVE program, a Biden-era initiative that offered lower monthly payments and a shorter path to loan forgiveness.
Federal servicers, including EdFinancial and Nelnet, are contacting borrowers. EdFinancial informed borrowers that they have 90 days to select a new repayment plan, as the SAVE plan is no longer available. The U.S. Department of Education stated that the transition will occur in phases, with most borrowers receiving additional time beyond the initial September 29 deadline. Some borrowers serviced by Nelnet may have until May 2027 to switch off the SAVE plan.
During this transition period, borrowers will remain in a SAVE forbearance, during which interest will continue to accrue on their loans. The Trump administration announced the settlement in March, encouraging the approximately 7 million borrowers on the SAVE plan to enroll in the new Repayment Assistance Plan (RAP), which became available on July 1. As of July 1, nearly 46,000 borrowers had submitted applications for RAP.