Education Department Begins Notifying Student Loan Borrowers They Have 90 Days To Switch Plans

Key Points:

• The Education Department has begun sending 90-day notices to student loan borrowers enrolled in the now-defunct SAVE plan, requiring them to choose a new repayment plan or be moved to the Standard or Tiered Standard plan automatically.
• The SAVE plan, a Biden-era income-driven repayment program, was ended following litigation and congressional action, forcing millions of borrowers to transition to other repayment options, with confusion persisting around timing and process.
• Borrowers have until 90 days after receiving their official notice—starting from July 1, 2026 at the earliest—to select a new plan; those who do not act will be placed in the Standard or Tiered Standard plan, which may have higher payments and typically do not count toward loan forgiveness.
• Alternative repayment plans available include Pay As You Earn (PAYE), Income-Based Repayment (IBR), and the newly launched Repayment Assistance Plan (RAP), though some advocacy groups warn these options may increase monthly payments or extend repayment periods.
• Advocacy groups recommend borrowers carefully evaluate their options and consider remaining in SAVE plan forbearance until receiving the official 90-day notice, to avoid payment shock or making premature changes.