SAVE Student Loan Deadline Next Week: What Borrowers Should Know

Federal student loan borrowers enrolled in the SAVE repayment plan face a deadline next week to select a new repayment option or face automatic placement into a different plan. SAVE, which ended due to a court order, offered lower, income-based payments to eligible borrowers. If a borrower misses the 90-day window to choose a new plan, they will be placed in either the Standard Repayment Plan or the new Tiered Standard Plan, where payments are based on loan balance rather than income.

For SAVE borrowers who received their notice dated July 1, the deadline to choose a new plan is September 29. However, borrowers with later notice dates will have their own individual deadlines within the 90-day window. It is crucial for borrowers to log in to their servicer account, confirm their specific deadline date, and use the federal Loan Simulator to compare the costs of different repayment plans, including Income-Based Repayment (IBR), Revised Pay As You Earn (RAP), and Standard Repayment.

The worst outcome for borrowers who miss their deadline is finding out that the government has selected a payment they cannot afford. For borrowers with federal loans disbursed before July 1, 2026, the traditional Standard Plan typically involves fixed payments over 10 years. However, the new Tiered Standard Plan allows borrowers to choose between repayment periods of 10, 15, 20, or 25 years, based on the loan balance.

The Repayment Assistance Plan (RAP) bases payments on adjusted gross income and the number of dependents claimed on the borrower's tax return, with payments ranging from $10 per month to up to 10 percent of adjusted gross income. The repayment period can extend to 30 years. Federal Student Aid recommends checking the StudentAid.gov dashboard to confirm loan types and disbursement dates to determine which repayment plans are available.