The transition comes as many borrowers report significantly higher projected monthly payments under the remaining repayment plans. According to The Independent, some borrowers have already shared concerns that their new payment amounts are substantially higher than what they paid under SAVE.
The Department of Education has established a 90-day window for affected borrowers to select a replacement repayment plan. That period begins only after a borrower’s loan servicer sends an official notice, with all notifications expected to be issued by the end of the year, according to loan servicer Nelnet.
For borrowers who relied on SAVE to reduce their monthly payments, the transition marks a significant administrative change. The Education Department has also removed SAVE from its repayment options and announced plans to phase out additional repayment programs over the next several years.
Borrowers Must Select a New Repayment Option after Court Ruling
According to The Independent, a federal court ruled in March that the SAVE repayment plan, introduced by the Biden administration in 2024, was unlawful. As a result, borrowers enrolled in the program must now choose from as many as nine available federal repayment plans.
The Department of Education has stated that borrowers have 90 days to make their selection once they receive formal notification from their loan servicer. Officials said the timeline is intended to give borrowers enough time to review their available repayment options and plan accordingly.
Borrowers do not need to wait until the end of the 90-day period to make a decision. They may contact their current loan servicer at any point after receiving notice to begin repayment or switch to another eligible plan. According to Nelnet, borrowers who do not select a repayment option before their deadline will automatically be placed into either a standard repayment plan or a tiered standard repayment plan.
The Education Department officially removed SAVE from its list of repayment options on July 1. According to the Institute for College Access and Success (TICAS), the department also plans to phase out the income-contingent repayment (ICR) and pay-as-you-earn (PAYE) plans by June 30, 2028.
Higher Monthly Payments Become a Concern for Many Borrowers
Borrowers considering their next repayment option can contact their loan servicer for guidance or use the Department of Education’s online student loan repayment calculator. The calculator asks users to provide information including tax filing status, adjusted gross income from their latest tax return, family size, and current student loan details before estimating available repayment plans.
The Department of Education notes that the calculator provides estimates only and that its results are based on assumptions that may not apply to every borrower.
For many former SAVE participants, the projected payment amounts are noticeably higher than before. According to The Independent, monthly payments under SAVE could be as low as 5 percent of a borrower’s income, while currently available repayment plans generally require payments equal to 10 percent to 20 percent of income.
The financial impact has prompted concern among some borrowers. In a Reddit discussion highlighted by The Independent, one user said their monthly payment increased from $0 under SAVE to $286 after switching plans. The same user wrote that they felt sorry for borrowers who were experiencing stress and uncertainty while trying to adjust to the changes.
