By Amy Czulada | May 19, 2026
After years of confusing limbo, the right-wing Attorney General in Missouri has finally succeeded in killing the SAVE repayment plan—the Biden-era repayment plan that provided affordable repayment options to millions of borrowers. As a result, the SAVE forbearance is finally coming to a close—here are some potential next steps for borrowers.
The Saving on a Valuable Education (SAVE) plan was implemented during the Biden Administration as the most affordable federal student loan repayment plan to date. A few months after it was introduced, eighteen right-wing attorneys general sued the Administration. Since then, the plan has been stuck in limbo and borrowers who were enrolled in the plan were put into an administrative forbearance. They haven’t been required to make payments on their loans during this time, but they also haven’t been able to accrue credit towards cancellation through the Public Service Loan Forgiveness (PSLF) program or Income-Driven Repayment (IDR) cancellation. Some folks opted to stay in this forbearance the whole time because they couldn’t afford the other more expensive repayment plans. Others opted to get out of the forbearance, switch to a different plan, and make payments that count toward one of the cancellation programs.
The SAVE court case has now ended. Late last year, the Trump Administration sold out borrowers in a backroom deal, agreeing to settle the case by agreeing to vacate the SAVE rule. As a result, borrowers can no longer access the SAVE program.
Borrowers Still in the SAVE Forbearance
At the end of March, the U.S. Department of Education (ED) started sending notices to borrowers in the SAVE forbearance telling borrowers that the SAVE plan was ending and that they would soon have to choose a different plan. Beginning on July 1, 2026, servicers will start sending communications to SAVE borrowers. Once borrowers receive that email, they will have 90 days from the receipt of that email to switch into a different payment plan—so borrowers will need to switch starting before late September. If a borrower does not switch plans by then, ED will automatically place them in the current standard plan or the new tiered standard plan. To be clear, borrowers do not need to take any steps until they receive that notice from their servicer.
Which plans are still available?
This gets complicated and the best plan for borrowers will vary from person to person. Income-Driven Repayment (IDR) plans are often the most affordable options for folks, and they qualify for PSLF (so a borrower can make IDR payments each month that count towards the 120 monthly credits they need to achieve cancellation under PSLF) and for IDR cancellation. This second piece means that if a borrower remains in an IDR plan for 20 or 25 years, depending on the plan, their loans can be cancelled after that time. Currently, there are three IDR plans available to borrowers: Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and Income-Based Repayment (IBR). These plans are all different and use different calculations to determine how much a borrower’s monthly payment might be. To figure out the most affordable plan, borrowers can read the National Consumer Law Center’s recent blog on the SAVE plan, which includes information on different repayment options.
The One Big, Beautiful Bill Act (OBBBA) will go into effect on July 1, 2026, adding yet another repayment option into the system around the same time that current borrowers will need to choose different payment plans. Borrowers will also have the option of switching into the new—but more expensive—Repayment Assistance Plan (RAP) starting on July 1st. The OBBBA also sunsets the ICR and PAYE plans on July 1, 2028. So, borrowers who choose those plans will have to switch plans again. However, borrowers can still take advantage of those two plans—which might be more affordable—until July 2028.
More Confusion for Borrowers Thanks to Policy Changes
The plethora of recent policy changes, rampant servicer mismanagement, servicing transfers, and ED facing huge staff reductions have really put borrowers through the wringer. Critically, there is a severe backlog of IDR applications; over half a million applications are currently pending. So, when the Department tells millions of borrowers they need to switch plans in 90 days, that backlog will almost certainly grow exponentially—potentially by 7.5 million people.
Borrowers know all too well that servicers have a long history of making serious mistakes on people’s accounts. So, an even larger backlog and an increase in servicing errors are almost assured. Here are a few actions borrowers can take if and when they have issues with their student loans or with their servicers.
- First, some states have student loan ombudsmen who can handle issues. Here’s a list of states that have them with their contact information. Reach out and ask for help.
- Second, they should contact their state attorneys general and file a complaint with them. Their website should have a form to complete on an email address to contact.
- Third, borrowers could use Protect Borrowers’ Congressional Casework Tool to contact their representatives and ask them to open a case on their behalf.
Here’s the long and short of it: the SAVE plan has ended, and soon borrowers will need to reenter repayment. The Trump Administration’s actions have only added more chaos to an already confusing system. Borrowers have a little bit of time to figure out their next steps—depending on when they hear from their servicer, they will have to switch sometime between July 1 and late September—but repayment is coming. Check out NCLC’s blog to understand the options. And remember, there are places to go when—not if—servicers make mistakes.
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Amy Czulada is the Senior Advisor for Outreach & Engagement at Protect Borrowers.