If you pay your federal student loans through the SAVE plan, big changes are here. Courts blocked the SAVE plan, and the government is now moving everyone off it — about 7.5 million people.
The timeline
Starting July 1, 2026, loan servicers began sending official notices. From your notice, you get at least 90 days to choose a new repayment plan. If you do nothing, around October you will be placed automatically into a Standard plan. Automatic is not always the cheapest for you — choosing is better.
Your main choices
- RAP — Repayment Assistance Plan. New income-based plan that started July 1, 2026. Your payment depends on your income and how many children you have. Big plus: if you make your payments on time, your balance will not swell from unpaid interest.
- Standard plan. Fixed payments, usually over 10 years. Predictable, often higher per month, less interest over the life of the loan.
- Tiered Standard plan. Also new: fixed payments over 10, 15, 20 or 25 years, depending on how much you owe. Bigger balance, longer term, smaller monthly payment.
How to decide, simply
- Money tight, income modest? Look at RAP first — the payment bends to your income.
- Want the debt gone fast and can afford more per month? Standard usually costs the least in total.
- Whatever you pick, act before your 90 days run out — do not let the automatic move choose for you.
What this means for you
- Watch your mail and email from your loan servicer, and make sure they have your current address.
- Compare your options at studentaid.gov — the official government site. It is free. You never need to pay a company to switch plans.
- Beware of scam calls offering "student loan forgiveness" for a fee. The real switch costs nothing.
Freeing up a monthly payment? Point it somewhere useful — the Debt Payoff Planner or an emergency fund are good first stops.
Where these facts come from: US Department of Education — next steps for SAVE borrowers. Facts checked July 2026. Numbers can change after publication.