Millions of Student Loan Borrowers Face New Repayment Plan Choices

SAVE program eliminated, borrowers must enroll in new options within 90 days

Apr. 4, 2026 at 11:04pm

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Millions of federal student loan borrowers will soon need to choose a new repayment plan as the Biden administration's SAVE program is being eliminated. Starting July 1, borrowers will be contacted by their loan servicers and given 90 days to enroll in a new plan, including options like the new Tiered Standard Plan that offers fixed terms of 10, 15, 20, or 25 years based on total outstanding loan balance.

Why it matters

The elimination of the SAVE program, which aimed to lower monthly bills for millions of borrowers, comes after several Republican-led states sued to block the plan. This change will impact the repayment options and monthly costs for millions of Americans with federal student loans, potentially causing confusion and anxiety as they navigate the new choices.

The details

The U.S. Department of Education said 7.5 million people are currently enrolled in the SAVE program, which was introduced by the Biden administration in 2023. A federal appeals court officially blocked the program last month, leading to its elimination. Borrowers will be contacted by their loan servicers in stages and given 90 days to enroll in a new repayment plan, such as the new Tiered Standard Plan that offers fixed terms based on total loan balance.

  • The SAVE program will be eliminated starting July 1, 2026.
  • Borrowers will have 90 days to enroll in a new repayment plan after being contacted by their loan servicers.

The players

Betsy Mayotte

President of the Institute of Student Loan Advisors, who addressed the ongoing changes to student loan repayment programs in April 2025.

Biden administration

Introduced the SAVE program in 2023, which aimed to lower monthly bills for millions of student loan borrowers.

Republican-led states

Sued to block the SAVE program, arguing it exceeded the administration's authority and would burden American taxpayers.

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What they’re saying

“There has never been a period more chaotic than the last five years. And that has caused a lot of confusion and anxiety with borrowers.”

— Betsy Mayotte, President, Institute of Student Loan Advisors

“If you are in default, I strongly recommend that you look into loan rehabilitation or consolidation to get out of default to prevent these involuntary collection activities.”

— Betsy Mayotte, President, Institute of Student Loan Advisors

What’s next

Borrowers will need to choose a new repayment plan within 90 days of being contacted by their loan servicers, starting in July 2026.

The takeaway

The elimination of the SAVE program will force millions of student loan borrowers to navigate a new set of repayment options, potentially causing confusion and anxiety as they try to find the best plan for their financial situation. This change highlights the ongoing challenges and uncertainty surrounding federal student loan policies in the United States.