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Guide · Updated September 29, 2026

The SAVE plan is over. Here's your move.

7.5 million borrowers are being moved off SAVE. If you're one of them, this is the short version of what to do — and by when.

What happened

In March 2026, the Eighth Circuit Court of Appeals struck down the SAVE (Saving on a Valuable Education) repayment plan. SAVE was one of the most generous income-driven repayment (IDR) plans ever created — many borrowers owed $0 a month. That plan no longer exists for new enrollments, and its ~7.5 million members must move to a different plan.

The deadlines that matter

  • When your servicer sends a notice: you have 90 days to choose a new plan. If you do nothing, you're automatically enrolled in RAP.
  • September 30, 2026: SAVE forbearance was scheduled to end around this point, moving borrowers into repayment on their new plan.
  • July 1, 2028: the final deadline — every SAVE, PAYE, and ICR borrower must be transitioned by this date. Non-choosers default into RAP.

Your two options (for older loans)

Income-driven borrowers now have exactly two choices:

Classic

IBR (the classic)

Based on discretionary income (AGI − 150% of the poverty line). Can be $0. Forgives after 20–25 years. Best for large families and lower incomes.

Compare IBR

New

RAP (the new one)

Tiered 1–10% of total AGI, min $10/mo, waives unpaid interest, matches principal when an on-time payment reduces principal by less than $50. Forgives after 30 years. The default if you don't choose.

Read about RAP

New loans first disbursed on or after July 1, 2026 can only use RAP (or the Standard plan).

What you should do this week

  • Don't wait for the letter. If you know you're on SAVE, start comparing plans now.
  • Run the numbers. Use our RAP vs IBR calculator — the federal Loan Simulator still doesn't estimate RAP payments, so this is often the fastest way to see both side by side.
  • IBR no longer requires a hardship test. OBBBA removed the partial-financial-hardship enrollment gate (FSA DCL, July 18, 2025). If your calculated IBR amount is high, the payment is still capped at the 10-year standard amount — it is not "not available."
  • Watch out for scams. You never pay anyone to enroll in a federal plan — apply free through your servicer or StudentAid.gov.

See your actual numbers: compare your monthly payment under RAP and IBR in under a minute — open the calculator →

Sources: Eighth Circuit ruling (March 2026), 34 CFR 685.209, OBBBA (P.L. 119-21) §80503, FSA Partners DCL (July 18, 2025), Department of Education guidance, CNBC (Sept 2026). Last updated: September 29, 2026.
Disclaimer: informational only — not legal, tax, or financial advice, and not official Department of Education guidance. Verify with your servicer or StudentAid.gov.

The SAVE plan is over.Here's your move.

7.5 million borrowers are being moved off SAVE. If you're one of them, this is the short version of what to do — and by when.

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