There’s no time like the present to get off of SAVE, the Department of Education is telling millions of student-loan borrowers.
On March 27, the department began emailing more than 7 million borrowers enrolled in the SAVE student-loan repayment plan, informing them that the plan is dead and they should prepare to restart payments on a new plan.
The emails, reviewed by Business Insider, had the subject line: “Action Required: The SAVE Plan has ended, and you must select a new repayment plan.”
Borrowers’ student-loan servicers will contact them with specific deadlines to enroll in a new plan, the email said, with those communications set to begin July 1. Borrowers will then have 90 days to restart payments. However, the department said borrowers should not wait until July and instead switch plans and begin payments as soon as possible. It outlined five reasons borrowers should make the switch now:
- Interest charges restarted on SAVE accounts in August 2025, and making payments now would prevent the balance from increasing
- Starting payments sooner would allow for a quicker debt payoff
- Borrowers will have more time to plan for new payments and reshape their budgets
- Those enrolled in the Public Service Loan Forgiveness program can resume their progress toward relief if they restart payments
- Switching to an income-driven repayment plan will put borrowers back on track for a discharge once they’ve reached the qualifying threshold.
The SAVE plan, created by former President Joe Biden, offered lower monthly payments and a shorter timeline to loan forgiveness. The plan was blocked in July 2024 amid legal challenges, during which enrolled borrowers were not required to make payments. While President Donald Trump’s “big beautiful” spending legislation would have phased out SAVE in 2028, a federal court approved a settlement to end the plan earlier, requiring borrowers to transition to new plans — and face higher monthly payments — years ahead of schedule.
Borrowers who do not select a new repayment plan within their given timeline will be automatically moved to a new plan. Beginning in July, borrowers will have the option to enroll in a standard repayment plan or the new Repayment Assistance Plan, which calculates monthly payments based on income and provides forgiveness after 30 years. It’s less generous than existing income-driven repayment plans, which Trump’s spending legislation eliminates.
“The plan you will be moved to depends on your circumstances,” the email said. “ED and your loan servicer will provide details about which repayment plan you will be moved to if you don’t choose a plan by the deadline set by your servicer.”
Borrowers who received the Department of Education email told Business Insider they have not yet been contacted by their servicers regarding the transition.
