7M+ Student Loan Borrowers Told to Prepare for Repayment

Biden-era SAVE plan struck down, leaving borrowers with fewer affordable options.

Mar. 28, 2026 at 9:20pm

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The U.S. Department of Education has announced that over 7 million student loan borrowers enrolled in the now-defunct SAVE repayment plan will need to select a new plan and resume making payments as soon as this summer. The SAVE plan, which provided more lenient terms, was struck down by a federal court earlier this month, leaving borrowers with fewer affordable options.

Why it matters

The end of the SAVE plan will significantly impact millions of student loan borrowers, many of whom are struggling to afford their monthly payments. This change comes at a time when the cost of living and economic uncertainty remain high, making it even more difficult for borrowers to manage their debt.

The details

Borrowers enrolled in the SAVE plan have been in forbearance since July 2024 as the legal battle over the plan played out in the courts. Starting July 1, loan servicers will begin issuing notices giving borrowers 90 days to select a new repayment plan. The available repayment plans will mean higher monthly payments for most of these borrowers.

  • In July 2024, borrowers enrolled in the SAVE plan were placed in forbearance as the legal battle over the plan continued.
  • On March 1, 2026, the U.S. Court of Appeals for the 8th Circuit struck down the SAVE plan.
  • Starting on July 1, 2026, loan servicers will begin issuing notices to borrowers, giving them 90 days to select a new repayment plan.

The players

U.S. Department of Education

The federal agency responsible for student loans and repayment plans.

Alexis Arredondo

A first-generation college graduate from the University of California, Los Angeles, who took on $40,000 in student debt and enrolled in the SAVE plan upon graduation.

Nicholas Kent

The Under Secretary of Education under the Trump administration, who stated that "the days of unlawful loan forgiveness are behind us" and that borrowers are responsible for repaying their loans.

Mike Pierce

The executive director of the Student Borrower Protection Center, who said borrowers have felt "whiplash" as the challenges to the SAVE plan worked their way through the courts.

Alexander Lundrigan

The policy and advocacy manager at Young Invincibles, an advocacy group, who said the changes to student loan repayment options have created an "affordability crisis" for borrowers.

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What they’re saying

“It's very difficult knowing where I'm going to be to able to get this money from.”

— Alexis Arredondo

“Let me be clear, the Trump administration's perspective is that when a student takes out a loan, they are responsible for repaying it.”

— Nicholas Kent, Under Secretary of Education

“Over and over again, education officials of both parties made promises about fixing the broken student loan system and called student debt a crisis. And yet today, these same borrowers are being told it's time to pay and you have no good options.”

— Mike Pierce, Executive Director, Student Borrower Protection Center

“You're talking about a pressing current affordability crisis, and you took away the most affordable plan option.”

— Alexander Lundrigan, Policy and Advocacy Manager, Young Invincibles

What’s next

Borrowers who were enrolled in the SAVE plan will need to select a new repayment plan within 90 days of receiving notices from their loan servicers, which will begin going out in stages starting on July 1, 2026.

The takeaway

The end of the SAVE plan will have a significant impact on millions of student loan borrowers, many of whom are already struggling to afford their monthly payments. This change comes at a time of economic uncertainty, making it even more difficult for borrowers to manage their debt and highlighting the ongoing challenges in the student loan system.