In March 2026, the Eighth Circuit Court of Appeals issued a ruling officially putting an end to the Saving on a Valuable Education (SAVE) plan. As a result, 7.5 million federal student loan borrowers will have to change their payment plans.
With the end of SAVE, the timetable for borrowers to take action is accelerated. Borrowers will have 90 days to select a new repayment plan, and there will be fewer options to choose from going forward.
Here’s what you need to know about the SAVE plan news.
Key Takeaways
- Rather than having until 2028 to change repayment plans, borrowers enrolled in SAVE have just 90 days to choose a new plan.
- Fewer repayment options are available, so your payments will likely increase.
- The new Repayment Assistance Plan requires payments for up to 30 years.
What Is SAVE?
During his final year in office, President Biden announced the launch of the SAVE plan. The plan replaced the Revised Pay As You Earn (REPAYE) plan, one of the four income-driven repayment (IDR) plans available to federal loan borrowers.
SAVE was popular because millions of borrowers qualified for lower payments than on other plans, and it offered a quicker path to loan forgiveness. Depending on a borrower’s loan balance, they could qualify for loan forgiveness in as little as 10 years.
The SAVE plan was controversial, and political opponents challenged the Biden Administration over it in court. While the legal challenges were underway, the U.S. Department of Education put all SAVE plan borrowers into forbearance, so no payments were due.
How the Federal Court Ruling Affects SAVE Borrowers
SAVE forbearance has ended, so SAVE plan borrowers must select another payment plan and make payments.
According to a press release from the Department of Education, federal loan servicers will notify borrowers of what actions they need to take. Borrowers will typically have 90 days to select a new repayment plan.
If you don’t make a choice by the end of your 90-day deadline, you’ll be enrolled in either the standard repayment plan or the new tiered standard repayment plans that will be available beginning July 1.
Going forward, borrowers will have the following repayment options:
Standard Repayment
The current standard repayment plan is available to all federal loan borrowers. It bases your payments on a 10-year term with fixed monthly payments.
Tiered Standard Repayment
Starting on July 1, 2026, a tiered repayment plan will replace the existing standard repayment plan. With the tiered plan, you’ll make payments for 10 to 25 years, with the term dependent on your loan balance.
| Tiered Standard Repayment Plan | |
| Loan Balance | Repayment Term |
| $0 to $25,000 | 10 years |
| $25,000 to $50,000 | 15 years |
| $50,000 to $100,000 | 20 years |
| More than $100,000 | 25 years |
Repayment Assistance Plan (RAP)
The RAP is a new plan that will be available to borrowers starting on July 1, 2026. With the RAP, you’ll pay 1% to 10% of your adjusted gross income (AGI), and you can be in repayment for up to 30 years.
| Repayment Assistance Plan | |
| AGI | Payment Amount |
| $10,000 or less | $10 per month |
| $10,0001 to $20,000 | 1% of AGI |
| $20,001 to $$30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| $100,001 and up | 10% of AGI |
It is the only repayment option (besides the standard repayment plan) for new borrowers who take out loans on or after July 1, 2026. For those who already have student loans, they can choose between the RAP and existing IDR plans.
Income-Driven Repayment Plans
With the SAVE plan unavailable, existing borrowers can still enroll in other IDR plans.
- Income-contingent repayment (ICR)
- Income-based repayment (IBR)
- Pay As You Earn (PAYE)
| ICR | IBR | PAYE | |
| Payment Amount | Lesser of fixed payments over 12 years and 20% of your discretionary income | 10% of discretionary income (for loans disbursed on or after July 1, 2014) | 10% of discretionary income |
| Repayment Term | 25 years | 20 years (for loans disbursed on or after July 1, 2014) | 20 years |
| Eligibility | Direct Subsidized, Direct Unsubsidized, Grad PLUS, Parent PLUS (If consolidated with a Direct Consolidation Loan) | Direct Subsidized, Direct Unsubsidized, Grad PLUS | Direct Subsidized, Direct Unsubsidized, Grad PLUS |
However, the One Big Beautiful Bill (OBBB) phases out ICR and PAYE in 2028, so the only options for eligible borrowers who had prior loans will be IBR and RAP.
On the SAVE Plan? Here’s What You Need to Do Now
If you’re still enrolled in the SAVE plan, take the following actions now:
1. Log In to Your Account
Log in to your Federal Student Aid (FSA) account via studentaid.gov to view your loans and to find out which loan servicers manage your loans. Once you have your loan information, you can sign into your loan servicer’s portal.
2. Use the Loan Payment Simulator
You can use the federal loan payment simulator to find out what your payments will be under the different repayment options. The tool will prompt you to enter information about your existing loans, income, and family size.
3. Enroll in a New Plan
Once you’ve selected a plan, you can contact your loan servicer to enroll in the new repayment plan. Some loan servicers allow you to apply online through their portals, or you may have to fill out a form and mail it to the loan servicer.
SAVE Plan FAQs
What is happening with the SAVE plan?
The SAVE plan is officially over, and borrowers will have to switch to other repayment options, such as one of the remaining IDR plans or the new RAP.
When SAVE ends, should I refinance my loans?
If you’re enrolled in SAVE, student loan refinancing could make sense if your finances are relatively secure and you have high-interest federal loans. However, refinancing will move your loans to a private lender, so you’ll lose eligibility for federal benefits, such as IDR plans or student loan forgiveness through Public Service Loan Forgiveness (PSLF).
What plan is replacing SAVE?
With SAVE gone, the new student loan repayment plan is the RAP. Under this plan, borrowers pay between 1% and 10% of their AGI, and you can be in repayment for up to 30 years.
