Overview
- The Department of Education has confirmed the elimination of the SAVE income-driven repayment plan, which covers about 7.4 million borrowers, with no official end date announced.
- A new Repayment Assistance Plan opens on July 1, 2026, using tiered percentages of adjusted gross income for monthly payments capped at 10% of AGI.
- RAP will provide up to $50 per month in principal assistance when payments do not reduce principal and will forgive remaining balances after 30 years of payments.
- ICR and PAYE will be eliminated after July 1, 2028, requiring borrowers on those plans to move to other options.
- Federal Student Aid’s Loan Simulator helps borrowers compare plans, and prolonged nonpayment among many SAVE enrollees raises the risk of delinquency or default once transitions begin.