Federal Student Aid Ends SAVE Repayment Plan
More than 7.5 million borrowers must select a new federal repayment plan after the SAVE program ended following a court-approved settlement.
Updated on Nov. 13, 2026 in Financial Aid
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The SAVE Plan is no longer available after a court-approved settlement ended the program in March 2026, and loan servicers began sending transition notices on July 1, 2026. Borrowers have 90 days from their servicer's notice to choose another legal repayment plan.
Why it matters
Borrowers who do not select a new plan within the 90-day window and the final 30-day notice period are automatically reassigned, which can mean higher monthly bills. With outstanding federal student loan balances at $1.66 trillion in the third quarter of 2026, the change affects a large share of borrowers across the United States.
Loan balances reached $1.66 trillion in the third quarter of 2026, up $5 billion from the previous quarter. Borrowers have 90 days after their servicer's notice to pick a new plan, and the final notice gives an additional 30 days before automatic reassignment.
The players
Federal Student Aid
Federal Student Aid is the office within the U.S. Department of Education that manages federal student loans and grants, and it sent guidance to borrowers about the SAVE program's end.
The details
Loan servicers began issuing individual transition notices to SAVE borrowers on July 1, 2026, in batches. Loans disbursed before July 1, 2026 default to the pre-SAVE plan, often the Standard Repayment Plan, while loans disbursed on or after that date default to the Tiered Standard Plan.
Timeline
March 2026: A court-approved settlement ended the SAVE Plan, and Federal Student Aid began sending guidance.
July 1, 2026: Servicers began transition notices, and the Repayment Assistance Plan and Tiered Standard Repayment Plan were introduced under the Working Families Tax Cuts Act.
Third quarter of 2026: Outstanding student loan balances reached $1.66 trillion.
Policy Context
The Working Families Tax Cuts Act established the Repayment Assistance Plan, which sets payments at 1% to 10% of income with a $10 monthly minimum. Borrowers leaving SAVE must now move into these newly created options or the pre-SAVE defaults.
Borrowers who do nothing risk automatic reassignment that could raise monthly payments. Checking your loan account on StudentAid.gov to confirm your servicer's notice date and choosing a plan within the 90-day window helps protect your budget.
The takeaway
Acting within the 90-day window keeps you in control of your repayment plan instead of leaving the choice to automatic reassignment. Review your options early so that your monthly payment matches your budget.
What happens next
Borrowers have 90 days from their servicer's transition notice to select a new repayment plan, followed by a final 30-day notice before automatic reassignment.
Further reading
Explore more Financial Aid guidance to understand how federal repayment options fit your budget.
More information
Log in to your account on StudentAid.gov to review your options and select a repayment plan.
Source note: This article includes information reported by El Cronista.
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