Borrowers in the discontinued SAVE plan must select a new repayment option within 90 days or risk higher payments under default terms.
Over 300,000 federal student loan borrowers have exited the Biden-era SAVE plan ahead of its July 1 discontinuation, but millions remain enrolled. Loan servicers will notify affected borrowers starting July 1, granting a 90-day window to transition to a new repayment plan.
The Department of Education is phasing out the SAVE plan and altering available repayment options after July 1. Borrowers who delay risk automatic enrollment in a standard plan with higher monthly payments, potentially disrupting progress toward loan forgiveness programs like Public Service Loan Forgiveness.
Experts recommend reviewing alternatives at studentaid.gov immediately. Failure to act may result in lost forgiveness credits or increased financial strain, as the government will assign a default plan if no selection is made.