Student loan servicers tell SAVE borrowers to switch plans within 90 days as program ends

According to CNBC, federal student loan servicers have begun notifying borrowers enrolled in the Saving on a Valuable Education (SAVE) plan that they have 90 days to move into another repayment plan after a federal appeals court ordered the end of the Biden administration-era program. The U.S. Department of Education said in a June 25 court filing the earliest deadline to exit SAVE will be Sept. 29, though most borrowers will have more time; Nelnet said it will notify nearly three million borrowers in waves, with notices sent between July 2026 and March 2027. More than 6.9 million borrowers were still in SAVE as of March, with an average debt of close to $55,000, according to an analysis by Mark Kantrowitz. If borrowers do not choose a new plan within 90 days of being notified, they will be placed in either the Standard Repayment Plan or the new Tiered Standard Plan, which rolled out on July 1 under President Donald Trump’s “one big beautiful bill act.” CNBC reported borrowers can switch plans via StudentAid.gov, and that a new income-driven plan, the Repayment Assistance Plan (RAP), is available starting this month with payments typically ranging from 1% to 10% of earnings and a $10 minimum monthly payment, with forgiveness after 30 years.