The Education Department will begin sending federal student aid notices on July 1 to borrowers in SAVE, telling them to switch to another repayment plan. The first letters start a 90-day clock, and borrowers who do not pick a new plan may be moved into Standard repayment automatically.
The department said the earliest any borrower will be moved off SAVE is September 29, 2026. It also said some borrowers may have more time because the notices will be staggered, and it strongly encourages borrowers to act now so they are in the plan that best meets their needs.
July 1 notice schedule
Last Thursday, the Department of Education put the timing into a court filing. That filing said borrowers with loans in forbearance because they enrolled in or applied for the SAVE Plan must select a new repayment plan and begin repaying their loans.
For borrowers, the practical step is straightforward: wait for the notice, then choose a repayment plan before the 90 days run out. The notice period gives borrowers time to compare options, but it also starts the process that can move them out of SAVE if they do nothing.
SAVE Plan repayment choices
SAVE is one of the income-driven options the department has been phasing out following a legal settlement. Borrowers who switch now may avoid automatic placement into Standard repayment, which the department said could lead to much higher payments and lost progress toward loan forgiveness.
Advocacy groups advise borrowers to evaluate their own circumstances before deciding. Some borrowers may benefit from switching now, while others may want to wait, depending on how their current payment compares with the next plan they choose.
Settlement and new lawsuit
The change follows a settlement agreement reached last December by the Trump administration and GOP-led states that had challenged SAVE. The agreement was entered into court in March, and the Education Department said it is now facing another lawsuit challenging its termination of SAVE.
Borrowers in SAVE now face a narrow choice: move on their own, or risk an automatic Standard repayment plan later. How many borrowers will be affected by the staggered notices starting July 1 remains the open question.
