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SAVE Plan Ends With July 1 Deadline for 7 Million to Choose New Repayment

Higher bills loom for many borrowers under less generous replacement plans.

Stage members and graduates participate in “Varsity” during UW–Madison's spring commencement ceremony at Camp Randall Stadium at the University of Wisconsin–Madison on May 10, 2025. The outdoor graduation was attended by more than 10,000 bachelor’s, master’s and law degree candidates, plus their guests. Photo courtesy Taylor Wolfram/UW–Madison
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Overview

  • The Education Department, which set a July 1, 2026 start to a 90-day selection window, says about 7.5 million SAVE enrollees must pick a new plan.
  • Borrowers who do nothing will be placed into the Standard plan or a new tiered version with fixed payments, including 15 years for $25,000–$49,999 and 25 years for balances above $100,000.
  • A new Repayment Assistance Plan starts July 1 with payments set at 1%–10% of earnings, a $10 monthly minimum, and debt cancellation after 30 years.
  • A March court settlement ended the Biden-era SAVE program after state lawsuits, and interest has been accruing since August 2025 for enrollees who were in forbearance.
  • Notices will roll out in phases, and a reported backlog of roughly 576,000 income-driven plan applications could slow processing and increase the chance of errors or missed bills.