The SAVE plan is ending: what to do with your student loans
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The SAVE income-driven repayment plan is over. A court order on March 10, 2026 ended it, and loan servicers began moving borrowers out of SAVE from July 1, 2026. If you were on SAVE, you now need a new plan. This guide covers what happens if you do nothing and how to pick a plan.
What happened to SAVE
- March 10, 2026: a court order ended the SAVE plan.
- July 1, 2026: servicers began sending 90-day notices to SAVE borrowers, in waves.
- Late September 2026: the first notice periods ran out.
- July 1, 2026: the new Repayment Assistance Plan (RAP) opened.
- July 1, 2028: the last date for borrowers to leave the older income-driven plans.
Your exact dates depend on when your servicer sent your notice. Check your servicer’s website and StudentAid.gov for your own deadline.
If you do nothing
If you do not pick a plan by your deadline, your servicer moves you to a standard plan. That is the Standard plan or the Tiered Standard plan. Payments on a standard plan are usually much higher than on SAVE, because they are not based on income.
You can still change plans after you are moved. Some borrowers may have to make one standard payment first.
The plans you can move to
| Plan | Payment based on | Open to new loans from July 1, 2026? |
|---|---|---|
| RAP | 1% to 10% of AGI | Yes |
| IBR | A share of discretionary income | No |
| PAYE | 10% of discretionary income | No, and it closes by July 1, 2028 |
| ICR | 20% of discretionary income | No, and it closes by July 1, 2028 |
| Standard | Fixed amount | Yes |
By July 1, 2028, the income-driven plans narrow down to RAP and IBR. PAYE and ICR are short-term options only.
How to choose
- Low income or kids: RAP often gives a low payment. It takes $50 a month off for each dependent. It also waives unpaid interest. See the RAP guide.
- Close to forgiveness under IBR rules: IBR may forgive your balance sooner than RAP’s 30 years. See RAP vs IBR.
- Working toward PSLF: RAP and IBR both count toward Public Service Loan Forgiveness. Pick the plan with the lower payment.
- High income: compare RAP with the standard plan. IBR payments are capped at the 10-year standard amount.
Some borrowers move from SAVE to PAYE first and to RAP later, to avoid interest being added to the balance. Ask your servicer whether this applies to you before you switch.
How to switch
- Log in to StudentAid.gov.
- Open the income-driven repayment application.
- Pick a plan, or let the tool pick the plan with the lowest payment.
- Give consent to share your tax data with the Education Department.
- Watch for a letter from your servicer that confirms the new plan and payment.
Use the RAP student loan calculator to estimate your RAP payment before you apply.
Common questions
Is the SAVE plan gone for good?
Yes. A court order on March 10, 2026 ended SAVE. Borrowers are being moved to other plans. No new SAVE enrollments are possible.
What if I missed my SAVE deadline?
Your servicer moves you to the Standard or Tiered Standard plan. You can still apply for RAP or IBR after that. You may need to make one standard payment first.
Does time on SAVE count toward forgiveness?
Check your account on StudentAid.gov. Rules on which months in SAVE forbearance count toward PSLF or IDR forgiveness have changed several times. Your payment count shows there.
Should I pick RAP or IBR after SAVE?
It depends on your income, family size and how long you have been paying. RAP suits many lower-income borrowers. IBR can be better if you are close to forgiveness. See RAP vs IBR.
Updated: November 1, 2026. Based on Federal Student Aid announcements and the One Big Beautiful Bill Act of 2025. Rules and dates can change. Check StudentAid.gov and your servicer before you act.