The SAVE repayment plan is ending July 1, 2026. If you're one of the 7.5 million borrowers currently enrolled, your loan servicer will send you a notice this summer — and you'll have roughly 90 days to pick a different plan. The catch: if you don't actively choose one, you won't be moved to an income-friendly alternative. You'll be placed into the Standard Repayment Plan, which carries fixed monthly payments based on your full loan balance with no income adjustment. A new income-driven option called the Repayment Assistance Plan (RAP) exists — but you have to ask for it.

The Saving on a Valuable Education plan was blocked by federal courts in 2025 and ruled unlawful. The U.S. Department of Education announced it is winding the plan down entirely, and starting July 1, 2026, SAVE is no longer an active repayment option.1

For the more than 7.5 million borrowers currently enrolled in SAVE, this means an immediate decision window that many will miss.1

What Happens on July 1

On July 1, loan servicers will begin sending notices to SAVE borrowers. Each notice starts a roughly 90-day clock. Borrowers who do not select a new repayment plan within their servicer-specific window will be automatically enrolled in either the Standard Repayment Plan or the new Tiered Standard Plan — whichever the servicer assigns.1

The auto-enrollment date is approximately October 1, 2026.

If you ignore your servicer's notice, you will not be moved to an income-driven plan. You'll land in the Standard Repayment Plan — typically the highest fixed monthly payment of any federal option, with no adjustment for your income. SAVE borrowers who currently have $0 payments or very low payments should treat this deadline as urgent.

The New Repayment Assistance Plan (RAP)

The One Big Beautiful Bill Act, signed July 4, 2025, created a new income-driven repayment plan called RAP, which launches July 1, 2026.2 Here is how it works:

  • Monthly payments range from 1% to 10% of your adjusted gross income (AGI), based on your income tier
  • Dependents reduce your payment by $50 each, based on your federal tax return
  • Minimum payment is $10 per month, regardless of income
  • Interest subsidy: when your monthly payment doesn't cover the full interest charge, the government covers the rest — your balance won't balloon
  • Principal credit: borrowers who pay on time receive up to $50 applied toward their principal each month
  • Forgiveness: 30 years, for all borrowers regardless of degree type

30 years — Time to loan forgiveness under RAP — vs. 20 years for undergrad borrowers under SAVEOne Big Beautiful Bill Act, P.L. 119-21 (2025)

The interest subsidy is meaningful: unlike older income-driven plans where unpaid interest could add to your principal indefinitely, RAP prevents your balance from growing if you make your payments on time.

The tradeoff is the timeline. SAVE offered forgiveness after 20 years for borrowers with only undergraduate debt. RAP sets the clock at 30 years for everyone, adding up to a decade of payments for some borrowers.

3 Things Most Borrowers Won't Figure Out in Time

1. Doing nothing does not get you RAP. Many borrowers will assume the government moves them to the most income-friendly available plan. It doesn't. Auto-enrollment goes to Standard or Tiered Standard — fixed payments, no income consideration. RAP requires active enrollment.

2. Parent PLUS borrowers cannot use RAP at all. The Repayment Assistance Plan is available for Direct Loans, including Grad PLUS — but not Parent PLUS loans or consolidated loans that include a Parent PLUS loan.2 If you're a parent who borrowed via Parent PLUS and you're enrolled in SAVE right now, your options after July 1 are limited to IBR (if you meet eligibility), ICR, Extended Repayment, or Standard. Contact your servicer before July 1 to understand your specific options.

3. RAP may cost more over time than Standard. Financial aid experts told NPR that the move to new plans — which cost more than SAVE — could worsen student loan defaults among borrowers who qualified for low or $0 payments under SAVE.1 RAP's lower monthly payments come at the cost of a longer repayment window. For borrowers who can afford higher payments, the Standard Plan or IBR may produce a lower total repayment cost over the life of the loan. Use the Department of Education's Loan Simulator at studentaid.gov to compare plans using your actual income and balance.

Before you choose, run your numbers through the Loan Simulator at studentaid.gov. Enter your current balance, income, and family size — it shows monthly payment AND total repayment cost for every plan you're eligible for. Monthly cost and total cost can point in opposite directions. RAP often looks better month-to-month but worse over 30 years.

Your Options After SAVE

Borrowers with loans issued before July 1, 2026, are eligible for: RAP, Standard, Tiered Standard, Graduated, Extended, IBR, PAYE, and ICR — depending on loan type and prior enrollment. Graduate and professional students whose loans convert after Grad PLUS ends should review our breakdown of what's replacing Grad PLUS loans.

For a full comparison of income-driven plans — including IBR, PAYE, and ICR alongside RAP — see our guide to income-driven repayment plans. For a side-by-side of all federal repayment structures, see student loan repayment plans explained.

Parents borrowing via Parent PLUS should read our full breakdown of Parent PLUS loan pros and cons, including which repayment plans are available after July 1.

If you're still figuring out how much federal debt is reasonable to carry, our guide on how much student debt is too much can help you set a target before choosing a repayment timeline.

For borrowers pursuing Public Service Loan Forgiveness, RAP payments count toward the 120-payment threshold. See our current guide to student loan forgiveness programs in 2026 for what that means under the new plan structure.

What to Do Before October 1

  1. Log in to studentaid.gov and confirm your loan servicer — the 90-day notice comes from them
  2. Pull your most recent tax return to find your AGI — that number drives your RAP payment
  3. Run the Loan Simulator before choosing — compare monthly payment and total cost across plans
  4. If you have Parent PLUS loans, call your servicer before July 1 to map your options
  5. If you want RAP, IBR, or any income-driven plan, request it actively — do not assume auto-enrollment will put you there

Footnotes

  1. NPR. (2026, June 21). Big changes coming to student loans on July 1. NPR. https://www.npr.org/2026/06/21/nx-s1-5856432-e1/big-changes-coming-to-student-loans-on-july-1 ↩ ↩2 ↩3 ↩4

  2. U.S. Department of Education. (2026). U.S. Department of Education announces next steps for borrowers enrolled in the unlawful SAVE plan. ed.gov. https://www.ed.gov/about/news/press-release/us-department-of-education-announces-next-steps-borrowers-enrolled-unlawful-save-plan ↩ ↩2