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Senate Democrats Urge Delay as Education Department Sets 90-Day Exit for SAVE Borrowers

They warn that automatic shifts into less generous plans could raise monthly costs by hundreds of dollars.

New Haven, Ct. April 16, 2026 U.S. Education Secretary Linda McMahon gestures while speaking at Yale University, April 16, 2026. McMahon sat for an hour long interview with Yale Student Tori Cook, president of the William F. Buckley, Jr. Program, an on-campus student organization. (Mark Mirko/Connecticut Public via Getty Images)
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Overview

  • Democratic senators sent a letter to Education Secretary Linda McMahon urging more time for borrowers to leave the SAVE plan and asking for clear safeguards during the switch.
  • The Education Department says servicers will start sending notices no earlier than July 1, which will open a 90-day window for more than 7 million SAVE enrollees to pick a new plan.
  • Borrowers who do not act will be moved into the Standard plan or a new Tiered Standard plan, which usually carry higher payments than SAVE.
  • Reporting and department guidance indicate many borrowers could see bills jump by hundreds of dollars, and lawmakers and experts warn that could fuel more delinquencies and defaults.
  • SAVE was launched in 2023 to tie payments to income, but courts ordered it vacated and the Trump administration later settled with Missouri to end the program and block new enrollments.