What happened to SAVE
The Saving on a Valuable Education (SAVE) plan was created in 2023 and challenged in court almost at once. The Department of Education settled the lawsuit brought by Missouri and several other states. On March 10, 2026, a federal court entered the judgment the Department requested and vacated most of the 2023 rules behind SAVE. About seven million borrowers were enrolled.
Servicers began sending SAVE borrowers notices around July 1, 2026, telling them to enroll in a different plan within 90 days. For many borrowers that deadline falls at the end of September 2026 or soon after. Check the date on your own notice or in your servicer account.
Your options
Which plans you can choose depends on when your loans were made:
- The Repayment Assistance Plan (RAP). Open to every SAVE borrower with eligible loans. The payment is 1% to 10% of AGI by bracket, minus $50 per dependent, never under $10. Unpaid interest is waived, principal is matched up to $50 a month, and forgiveness comes after 360 qualifying payments. How RAP works.
- Income-Based Repayment (IBR). For loans made before July 1, 2026. The payment is 10% or 15% of income above 150% of the poverty guideline, can be $0, and is capped at the 10-year standard amount. Forgiveness comes after 20 or 25 years. It is closed to borrowers who made 60 or more qualifying SAVE payments on or after July 1, 2024. Your servicer can confirm your count.
- Standard and other fixed plans. A fixed payment that repays the loan in full, usually over 10 years for older loans.
- PAYE and ICR remain only for borrowers already on them, and both close on July 1, 2028. They aren't a destination for SAVE borrowers.
The calculator above starts on a typical SAVE case: $48,000 of AGI, one dependent, $42,000 of loans at 6.52%, and three years of qualifying payments. On those numbers RAP has the lowest payment, $110 a month against IBR's $129.50 and the Standard plan's $477.33. IBR's earlier forgiveness gives it the lowest total cost, even after an estimated tax on the forgiven amount. Replace the numbers with yours.
If you don't choose
The Department has said borrowers who let the 90 days pass will be placed on another plan, likely the Standard plan. Its payment depends on your balance, not your income, and is often several times a SAVE payment. You would get monthly bills at that amount until you change plans. You can still apply for an income-driven plan afterwards, but it's better not to start with bills you can't afford.
Payments that still count
- Toward RAP's 360: monthly payments made under SAVE, PAYE or ICR before July 1, 2028, IBR payments, payments at least equal to the 10-year standard amount, and months of unemployment or economic hardship deferment.
- Toward IBR forgiveness: payments under the income-driven plans, including SAVE, and 10-year standard payments.
- Toward PSLF: payments under any qualifying plan while you work full-time for a qualifying employer. RAP is a qualifying plan. See RAP and PSLF.
Enter the qualifying payments you have already made in the calculator under "More details". It uses them for both RAP and IBR.
How to switch
Apply online at StudentAid.gov, where you choose the plan and approve sharing your tax information. How to apply walks through each step and what happens after. You don't have to wait for your notice: you can change plans now.
Common questions
Why is the SAVE plan ending?
The Department of Education settled a lawsuit brought by Missouri and other states and asked the court to enter judgment against the plan. A federal court entered that judgment on March 10, 2026.
How long do SAVE borrowers have to choose a new plan?
Servicers began sending notices around July 1, 2026 that give borrowers 90 days to enroll in another plan. Check the date in your own notice or your servicer account, since notices went out at different times.
What happens if I don't choose a plan?
The Department has said borrowers who don't choose will be placed on another plan, likely the Standard plan, whose payment is based on the balance rather than income and is often much higher than a SAVE or income-driven payment.
Do my SAVE payments still count toward forgiveness?
Monthly payments made under SAVE before July 1, 2028 count as qualifying payments toward RAP's 360, and income-driven payments count toward IBR forgiveness. Your servicer tracks the count.
Can I move to IBR instead of RAP?
Yes, for loans made before July 1, 2026, unless you made 60 or more qualifying payments under SAVE on or after July 1, 2024, or you have a Direct Loan made on or after July 1, 2026. Those borrowers can't enroll in IBR.