Student Loan Borrowers in Defunct SAVE Plan Told to Seek New Repayment Options

Millions must choose between higher monthly payments or longer repayment periods as Biden-era program ends.

Mar. 28, 2026 at 9:05pm

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The U.S. Department of Education is notifying over 7 million student loan borrowers who were enrolled in the now-defunct SAVE repayment plan that they must select a new plan by July 1 to resume making payments. The SAVE plan, which offered more lenient terms, was struck down by a federal court earlier this month, leaving borrowers with less favorable options that will likely result in higher monthly bills.

Why it matters

The end of the SAVE plan is a setback for the Biden administration's efforts to provide student debt relief. Borrowers who had been relying on the SAVE plan's reduced payments and forgiveness options now face the prospect of higher monthly costs or longer repayment timelines, which could strain their finances.

The details

Borrowers enrolled in the SAVE plan have been in forbearance since July 2024 as the legal battle over the program played out. Starting July 1, loan servicers will begin issuing 90-day notices to these borrowers, instructing them to select a new repayment plan. The available options, such as income-driven repayment plans, will generally mean higher monthly payments for most of these borrowers compared to the SAVE plan.

  • Borrowers have been in forbearance since July 2024 as the SAVE plan was challenged in court.
  • Loan servicers will begin issuing 90-day notices to SAVE plan enrollees on July 1, 2026.
  • Borrowers must select a new repayment plan by the end of the 90-day notice period.

The players

U.S. Department of Education

The federal agency responsible for overseeing student loans and repayment plans.

Alexis Arredondo

A University of California, Los Angeles graduate who enrolled in the SAVE plan after taking on $40,000 in student debt and is now facing higher monthly payments or a longer repayment period.

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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, Student Loan Borrower

“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

What’s next

Borrowers must select a new repayment plan within 90 days of receiving the notice from their loan servicer.

The takeaway

The end of the SAVE repayment plan is a setback for student debt relief efforts, as millions of borrowers must now choose between higher monthly payments or longer repayment periods, further straining their finances.