The SAVE plan is no longer available as a federal repayment option. Borrowers formerly in SAVE, including people with pending SAVE applications, must move to another eligible plan through their loan servicer.
What the court order changed
On March 10, 2026, a federal court vacated the Saving on a Valuable Education (SAVE) Plan. The Department of Education then instructed borrowers in the unlawful, defunct plan to select a legal federal repayment plan. MOHELA’s borrower FAQ and the U.S. Government Accountability Office’s July 13, 2026 report both record that SAVE ended with the court order.
About 8 million borrowers had been enrolled in SAVE and placed in administrative forbearance, according to the GAO’s 2026 report. The Associated Press separately reported that more than 7 million borrowers were expected to receive transition notices. Many borrowers are expected to face higher payments under replacement plans, but there is no single nationwide payment amount.
When your decision deadline starts
Your deadline is tied to the date on your servicer’s transition notice, not to one national calendar date. MOHELA says it is sending notices in waves from July through October 2026 and gives affected borrowers 90 days from the date of each notice to choose a plan. MOHELA also says you do not have to wait for the notice to begin reviewing or selecting a plan.
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The requirement applies to borrowers already in SAVE and to borrowers whose SAVE applications were still pending. If you do not select a plan before the 90-day window expires, MOHELA says it will place your account automatically in either the Standard Repayment Plan or the Tiered Standard Plan, depending on your loan disbursement dates.
Replacement plans available in 2026
Use the official StudentAid.gov repayment calculator together with your servicer’s account. Enter your actual loan types, disbursement dates, balance, income and family size; eligibility and payment results are individualized.
| Plan | Payment approach | Forgiveness or term information | Interest and principal features | Timing and eligibility |
|---|---|---|---|---|
| Repayment Assistance Plan (RAP) | 1%–10% of adjusted gross income, according to the GAO’s 2026 description. | Forgiveness after 30 years of qualifying payments. | Monthly interest subsidies and, for eligible borrowers, at least $50 in principal reduction each month. | Available July 1, 2026; apply only if your loans and circumstances meet the plan’s eligibility rules. |
| Tiered Standard Plan | A tiered payment schedule; the cited federal material does not state one universal dollar formula. | Not stated in the cited material. | Not stated in the cited material. | Available July 1, 2026; may be the automatic destination for borrowers who miss the servicer’s 90-day window. |
| Income-Based Repayment (IBR) | Income-based; your servicer determines the payment under the applicable IBR rules. | Not stated in the cited material. | Not stated in the cited material. | Remains an option for loans made before July 1, 2026, subject to eligibility. |
| PAYE | Not stated in the cited material. | Not stated in the cited material. | Not stated in the cited material. | Closed to new borrowers taking out loans on or after July 1, 2026; scheduled to close for current borrowers on July 1, 2028. |
| Income-Contingent Repayment (ICR) | Not stated in the cited material. | Not stated in the cited material. | Not stated in the cited material. | Closed to new borrowers taking out loans on or after July 1, 2026; scheduled to close for current borrowers on July 1, 2028. |
| Standard Repayment | Generally fixed payments. | Generally a shorter repayment schedule than Extended; exact term depends on the eligible loan. | Not stated in the cited material. | Continues for eligible borrowers and is one possible automatic placement after a missed deadline. |
| Graduated Repayment | Payments increase over time. | Not stated in the cited material. | Not stated in the cited material. | Continues for eligible borrowers. |
| Extended Repayment | Payment amount depends on the extended schedule and balance. | Terms can reach up to 25 years. | Not stated in the cited material. | Continues for eligible borrowers who meet the plan’s requirements. |
For cells marked not stated, consult your servicer and the current federal plan documentation before enrolling. Plan availability can depend on loan type, dates and other eligibility conditions.
Will your monthly payment increase?
It may. The Associated Press reported that payments would be higher for many borrowers after the transition, but neither the Department of Education nor MOHELA gives one replacement payment that applies to everyone. Your result depends on income, family size, loan balance, loan type, disbursement dates and the plans for which you qualify. RAP’s published percentage is a calculation based on adjusted gross income, not a promise of a particular monthly dollar amount.
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What to do after receiving a notice
- Record the notice date. Count 90 days from the date shown by your servicer; that is your individualized decision window under MOHELA’s instructions.
- Check your loan details. Confirm each loan’s type, disbursement date, current balance, income information and family size. These details can change which plans appear and what they cost.
- Run the official comparison. Use the StudentAid.gov repayment calculator to compare RAP, Tiered Standard, IBR and any other plans displayed as eligible.
- Review the result in your servicer account. Check the projected payment, repayment schedule and any forgiveness or interest provisions before submitting a choice.
- Submit the selection and save proof. Keep the confirmation page, screenshots or reference number. If a SAVE application was pending, follow the same process once the servicer makes the transition option available.
- Contact the servicer when information is missing. Ask which loans qualify, how your disbursement dates affect Standard versus Tiered Standard placement, and what happens if your income or family size has changed.
Common deadline and eligibility mistakes
- Assuming the court date is your personal deadline. The operative date is the date on your servicer’s notice.
- Waiting for a notice before checking options. MOHELA says borrowers may act before the notice arrives.
- Assuming every borrower qualifies for RAP or IBR. Eligibility depends on loan and borrower details.
- Using a payment estimate without updating income, family size or loan balance.
- Ignoring the automatic-placement consequence. Missing the window can result in Standard or Tiered Standard placement rather than a plan you selected.
What borrowers should expect next
Implementation is still moving through the 2026 transition period, and government and servicer pages may change. Check your current servicer account regularly, use the notice-specific date shown there, and confirm the final plan and payment before the 90-day window closes.
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