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The SAVE plan is ending -- 7.5 million borrowers need to pick a new plan

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February 20, 2026 • Student Loans
student-loans SAVE repayment RAP

The SAVE plan -- the income-driven repayment plan introduced by the Biden administration -- is being eliminated. A settlement agreement reached in December 2025 between the Trump administration and several states ended the program. If you are one of the roughly 7.5 million borrowers enrolled in SAVE, this affects you directly.

Where things stand right now

SAVE borrowers are currently in administrative forbearance. That means no payments are due, but there are two catches:

  • Interest is accruing. Your balance is growing every month you stay in forbearance.
  • No forgiveness credit. Time spent in forbearance does not count toward the 20- or 25-year forgiveness timeline under income-driven repayment.

In other words, staying put is not free. Every month you wait, you lose ground.

What plans are available

You can switch to one of the following income-driven repayment plans right now:

  • Income-Based Repayment (IBR) -- this is the most durable option. It is not scheduled to be eliminated.
  • Pay As You Earn (PAYE) -- available now, but will be phased out by July 1, 2028.
  • Income-Contingent Repayment (ICR) -- also available now, also sunsetting by July 1, 2028.

Starting July 1, 2026, there will also be a new option: the Repayment Assistance Plan (RAP). RAP bases payments on 1–10% of your total adjusted gross income with a $10 minimum monthly payment. The government waives any unpaid interest each month and contributes up to $50 toward your principal. Forgiveness comes after 30 years.

Expect higher payments

SAVE offered the lowest payments of any income-driven plan. Switching to IBR, PAYE, or RAP will likely mean a noticeable increase. For example, a single borrower earning $50,000 with undergraduate loans might go from roughly $110 per month under SAVE to around $325 per month under IBR. That is an extra $2,500–$3,400 per year.

It is a real jump, but it is better than sitting in forbearance where your balance grows and your forgiveness clock is frozen.

What to do

  1. Log in to studentaid.gov and check your current plan status.
  2. Compare your options. Use the Student Loan tool to see estimated payments under IBR and RAP side by side, including forgiveness timelines and total cost.
  3. Switch sooner rather than later. The longer you stay in forbearance, the more interest accumulates and the more forgiveness credit you lose.

Key dates

  • Now: you can switch to IBR, PAYE, or ICR at any time.
  • July 1, 2026: RAP becomes available as a new option.
  • July 1, 2028: PAYE and ICR are eliminated. Only IBR and RAP will remain as income-driven options.