economy
More Than 7 Million Student Loan Borrowers Face Deadline to Leave Biden-Era Repayment Plan. What to Know
Student loan borrowers will be removed from the Saving on a Valuable Education, or SAVE, plan, later this year, Trump officials said.
TL;DR
- The SAVE student loan repayment plan is being phased out due to legal challenges, affecting approximately 7.5 million borrowers.
- Borrowers have 90 days starting July 1, 2026, to select a new repayment plan.
- Available alternatives include existing income-driven plans (like IBR), the new Repayment Assistance Plan (RAP), and the Standard Repayment Plan.
- Experts suggest the Income-Based Repayment (IBR) plan may offer better long-term benefits, including faster loan forgiveness, compared to RAP.
- Borrowers not switching plans by the deadline will be automatically enrolled in the Standard Repayment Plan, potentially with higher payments.
- Applying for a new plan can be done through Studentaid.gov or a loan servicer's website.