The US Education Department has started sending official notices to student loan borrowers who are still in the SAVE repayment plan. The notice tells borrowers that they have 90 days to choose a new repayment plan. The notice clearly says, “You must now select a new repayment plan” within 90 days.
If borrowers do not choose another plan within 90 days, their loans will automatically move to either the Standard Repayment Plan or the Tiered Standard Plan, depending on their situation. These notices are part of the government’s plan to officially end the SAVE repayment program. The SAVE plan was introduced during former President Joe Biden’s administration as an income-driven repayment program, according to Forbes.
The SAVE plan has faced legal challenges for nearly two years. Congress passed a law last year that ended the SAVE program. A federal appeals court later approved a legal settlement that removed the SAVE plan regulations. Because of these legal and political changes, millions of borrowers now have to leave the SAVE plan. Many borrowers are still confused about when they must leave SAVE and how the process works.
Who is getting these notices?
The Education Department started sending the official 90-day notices on July 1, 2026. The notices are being sent only to borrowers who are in the SAVE plan, applied for SAVE, or were affected by the SAVE forbearance because of an old repayment application. The notice says that the SAVE plan is no longer available because of a recent legal settlement.
Borrowers who stay in SAVE and do nothing for 90 days will be moved to the Standard or Tiered Standard repayment plan. Monthly payments under the Standard plan may be much higher for many borrowers. Payments under the Standard plan usually do not count toward loan forgiveness programs, including Public Service Loan Forgiveness (PSLF), according to Forbes.
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Some borrowers will instead be placed in the Tiered Standard Plan, which started earlier this month. Some people were never officially enrolled in SAVE but were placed into the SAVE forbearance after applying. Those borrowers will return to the repayment plan they had before applying for SAVE if they do not act within 90 days.
Timeline borrowers should know
No borrower received an official 90-day notice before July 1, 2026. The Education Department announced in March that loan servicers would begin sending these notices starting on July 1. The department also said borrowers who do not change plans within 90 days will be automatically placed in a Standard or Tiered Standard plan.
Before July 1, the department had only sent warning messages, not official 90-day notices. Those earlier warnings did not start the 90-day countdown. The 90-day countdown begins only after a borrower receives the official notice. In a court filing, the Education Department said no borrower would be required to leave SAVE before September 29, 2026, because that is 90 days after July 1.
The department said notices will be sent in batches, not all at once. Some borrowers may not receive their official notice until early 2027, according to Forbes. Loan servicers will tell each borrower their own personal 90-day deadline.
Repayment choices after leaving SAVE
The official notice tells borrowers that although SAVE has ended, other repayment options are available. One option is the Pay As You Earn (PAYE) plan. Congress has allowed the PAYE plan to continue until 2028. Another option is the Income-Based Repayment (IBR) plan, which will continue. Borrowers can also choose the new Repayment Assistance Plan (RAP).
RAP started on the same day the department began sending the official notices. Education Department officials said hundreds of thousands of borrowers have already left SAVE, according to Forbes.
Officials also said thousands of borrowers signed up for RAP within its first 24 hours. Under Secretary of Education Nicholas Kent said nearly one million borrowers have already left the SAVE plan, according to Nicholas Kent’s statement on X. Kent urged borrowers still in SAVE to visit StudentAid.gov and choose another legal repayment plan.
Concerns raised by advocacy groups
Student loan advocacy groups say many borrowers may face higher monthly payments after leaving SAVE. They warn this could cause payment shock for many families. They also say RAP may have lower payments for some borrowers but could require them to stay in repayment for more years before qualifying for loan forgiveness, according to advocacy groups cited by Forbes. Because of this, some advocacy groups are advising borrowers to stay in the SAVE forbearance for as long as possible, if they have not yet received the official notice.
The Debt Collective said borrowers who received a notice on July 1 still have a full 90 days before they must act, according to the Debt Collective on X. The group also advised borrowers who have not received an official notice to avoid making quick decisions about leaving SAVE. Other advocacy groups are encouraging borrowers to carefully compare all repayment options before choosing a new plan.
These groups say some borrowers may benefit from switching early, especially if they want to continue working toward loan repayment or forgiveness, according to advocacy groups cited by Forbes. They also say borrowers who may struggle with higher monthly payments could consider remaining in the SAVE forbearance until they receive their official 90-day notice.
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