Overview
- The Education Department began sending official 90‑day notices on July 1, requiring borrowers in the defunct SAVE plan to pick a new repayment option within 90 days of their individual notice.
- Borrowers who do not choose will be automatically placed on either the Standard Repayment Plan or the newly launched Tiered Standard Plan, which can raise monthly payments and typically does not count toward forgiveness programs.
- The department launched the Repayment Assistance Plan (RAP) and preserved other income‑driven options, but RAP can extend the time borrowers must remain in repayment before qualifying for forgiveness.
- A June 23 court motion and ongoing lawsuits seek to pause automatic transfers while courts decide, and advocates are urging pauses or extra protections to prevent payment shocks and defaults.
- Operational troubles heighten risk: servicers are issuing notices in waves with some borrowers told they may not get notices until early 2027, and groups report backlogs and tool errors that could block timely plan changes.