Overview
- The agreement ending the Biden-era SAVE plan is pending court approval, and the Education Department says it will halt new SAVE enrollments and deny pending applications under the deal.
- Roughly seven million borrowers in long SAVE forbearance are expected to return to repayment with higher monthly bills than under SAVE.
- Officials have not specified exact deadlines or which plan borrowers will be placed into if they do not choose one themselves.
- Advocates warn existing processing backlogs could delay plan changes, adding interest costs and costing borrowers credit toward income-driven forgiveness.
- A new repayment architecture begins July 1, 2026 for new loans, featuring the income-driven Repayment Assistance Plan and a tiered Standard Plan, and the Education Department urges borrowers to use the federal loan simulator and consider options such as IBR now.