Plainly is a free tool. It is not part of any government agency.
My Student Loan Servicer Says the SAVE Plan Is Ending. What Do I Do?
Last reviewed 2026-07-12
The SAVE plan was ended by a court settlement. Servicers are sending each borrower a notice with their own 90-day deadline to switch to a legal repayment plan, including the new Repayment Assistance Plan. Missing that deadline does not mean default, but it does mean automatic enrollment in a plan you did not choose.
What happened
A notice arrived saying the SAVE plan is ending and a new plan must be chosen. This can feel sudden, but it follows a court settlement that closed out the SAVE plan after it was blocked by federal courts. Servicers began mailing individual exit notices starting July 1, 2026, each with its own 90-day deadline.
What usually applies
Each SAVE borrower gets their own 90-day deadline. It is counted from the date their own servicer's notice was sent, not one date for everyone. A borrower can also switch sooner. Just contact your servicer any time before that deadline. Missing the deadline does not trigger default or collections. It leads to automatic enrollment in the Standard Plan or the new Tiered Standard Plan, with no choice in which one. Borrowers on IBR, ICR, or PAYE plans have a separate, longer deadline instead, generally until July 1, 2028.
“Starting on July 1, federal loan servicers will begin issuing notices to borrowers, instructing them to exit the illegal SAVE Plan and enroll in a legal repayment plan within 90 days.”
“Servicers will notify borrowers of their specific 90-day deadline. ... A borrower who wishes to transition before their loan servicer communicates a specific 90-day deadline may contact their servicer at any time to enroll in a lawful repayment plan.”
“Borrowers who do not transition plans within the 90-day period communicated by their servicer will be automatically enrolled into either the Standard Repayment Plan, or the new Tiered Standard Plan that will be available beginning July 1.”
“Certain borrowers currently enrolled in phased out repayment plans with loans made before July 1, 2026, will have until July 1, 2028, to decide between the Repayment Assistance Plan, Tiered Standard plan, or the Income-Based Repayment (IBR).”
“Monthly payments are between 1 and 10 percent of a borrower's income, depending on how much they earn. In addition, their payments will be reduced by $50 per month for each of their dependents.”
What to do
- 1
Find your own servicer's notice and its exact deadline
The 90 days is counted from your own notice date, not from July 1 or any other fixed date. Log in to check it.
- 2
Compare the new Repayment Assistance Plan and Tiered Standard Plan
Both launched July 1, 2026. They replace SAVE as the new options.
- 3
Decide and tell your servicer before the deadline
You can switch earlier than your deadline if you want. Waiting past it means the servicer picks a plan for you.
- 4
Consider consenting to IRS data sharing to speed up the switch
This lets the servicer pull your income directly. You would not need to upload documents yourself.
Your servicer is the first call, if your income changed or a payment looks wrong. If you are also behind on other bills, a housing counselor or legal aid office can help. Your local 211 line can point you to one.
Want help with your own letter?
Start nowSources
- U.S. Department of Education (ed.gov)Retrieved 2026-07-11
- U.S. Department of Education (ed.gov)Retrieved 2026-07-11
Last reviewed 2026-07-12