Millions of federal student loan borrowers currently enrolled in the defunct Saving on a Valuable Education (SAVE) plan must transition to a new repayment option. Borrowers are receiving 90 days after notification to choose a new plan, with the rollout of the new Repayment Assistance Plan (RAP) and other changes taking effect this summer.
Key dates and rules for the transition include:
- The 90-Day Clock: Borrowers in the SAVE plan are being notified by their loan servicers and are given 90 days from receiving the notice to select an alternate plan.
- The Repayment Assistance Plan (RAP): Starting July 1, the Trump administration is replacing SAVE with the RAP. Under RAP, payments will range from ($10) a month up to (10%) of adjusted gross income.
- Disappearing Plans: The Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) plans will be phased out and closed to new loans, disappearing entirely by July 1, 2028.
- The Default Timeline: If you do not actively select a new plan within your 90-day window, you will be defaulted into the standard repayment plan. Borrowers who default will begin owing standard payments starting in October.
Borrowers should review their options and update contact details via the official Federal Student Aid portal or through their respective loan servicers (e.g., Nelnet).
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