Nearly 7 million federal student loan borrowers remained enrolled in the now-defunct SAVE repayment plan as of June 2026, government data shows [1, 2]. The Biden-era SAVE plan launched in 2023 aimed to cut monthly payments in half by calculating affordable caps on borrower payments based on income [1, 2].
A federal appeals court ended the SAVE program early in 2026 after legal challenges led by Republicans, leaving borrowers uncertain about repayment options [1, 3, 2]. Borrowers enrolled in SAVE have roughly 90 days from July 1, 2026, to choose a new repayment plan or they will be automatically placed in more expensive options [1, 2]. Nicholas Kent, Undersecretary of Education, emphasized, "SAVE borrowers have to move" given the program's termination [1].
Borrowers can select from new repayment plans including the Repayment Assistance Plan (RAP), which calculates payments based on adjusted gross income but generally results in higher monthly bills than SAVE [3, 2]. Certified financial planner Landon Warmund noted, "There's definitely some unique opportunities with it [RAP]," but RAP monthly minimums start at $10, higher than many payments under SAVE [3]. Alternatively, the tiered standard plan requires set payments over time with a minimum monthly payment of $50 [2].
Over 530,000 borrowers remained in backlog awaiting enrollment in new plans as of late April 2026, reflecting administrative delays amid the transition [1]. Many face risks of steep payment increases or even default as a result of switching from the low-cost SAVE plan [1, 2]. One borrower with $300,000 in student debt expressed deep concern about repayment challenges after SAVE ended [4].
Democratic lawmakers urged the Department of Education to automatically enroll all current SAVE borrowers into the lowest cost repayment plans to avoid financial harm [2]. However, reports differ on whether non-responding borrowers will be placed into the most expensive plans or receive other protections [1, 2].
Recent legislation also includes new borrowing caps on advanced degrees and changes to parent borrower rules, which could affect future loans for graduate students and families [2].
Borrowers must act by mid-October 2026 to exit SAVE and select a repayment option to avoid automatic placement in costlier plans or potential repayment difficulties [1, 2].
