Trump Administration Ends SAVE Student Loan Repayment Plan, Urges Borrowers to Switch Now

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The Department of Education has notified over 7 million student loan borrowers enrolled in the SAVE repayment plan that the program is ending, and they must select a new repayment plan by their servicer's deadline, which is expected to begin in July. The department is urging borrowers to switch plans as soon as possible to avoid interest charges and get back on track for loan forgiveness.

Why it matters

The SAVE plan, created under the Biden administration, offered lower monthly payments and a faster path to forgiveness. Its early termination means millions of borrowers will face higher monthly bills and a longer road to debt relief, adding financial strain during an uncertain economic time.

The details

In emails reviewed by Business Insider, the Department of Education told SAVE plan enrollees they must select a new repayment option within 90 days of their servicer's deadline, which is expected to start on July 1. The department outlined five reasons borrowers should switch plans immediately, including preventing interest charges, resuming progress toward forgiveness programs, and having more time to adjust their budgets.

• On March 27, the Department of Education began emailing over 7 million SAVE plan borrowers.
• Borrowers' servicers will contact them with specific deadlines to enroll in a new plan, starting on July 1.
• Borrowers will have 90 days from their servicer's deadline to select a new repayment plan.

What’s next

Borrowers who do not select a new repayment plan within their given timeline will be automatically moved to a new plan, which could be a standard repayment plan or the new Repayment Assistance Plan.