Borrowers Face Higher Payments as SAVE Plan Ends and Automatic Switch Looms
Borrowers must choose a new repayment option by September 29 or be moved to the costly standard plan after the Trump administration ended the SAVE program.
The Trump administration’s July 1 overhaul eliminated the SAVE income-driven repayment plan, prompting student-loan servicers to issue 90-day notices to borrowers starting in early July. The first deadline, September 29, requires borrowers to voluntarily switch to another plan or face an automatic move to the standard repayment schedule, which carries the highest monthly payments. Many borrowers report increased bills and calculation errors since the change.
A pending lawsuit aims to block the forced transfers, while Democratic senators, including Elizabeth Warren, have called on the Education Department to lengthen the transition window. The department’s undersecretary, Nicholas Kent, defended the 90-day period as sufficient for borrowers to explore options. Notices are expected to reach all former SAVE participants by the end of 2026.
Why it matters
Millions could see sharply higher loan payments unless they act before the September deadline.
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