Court Order Ends SAVE Plan Forcing 7.5 Million Borrowers to Choose New Repayment Options
A March 2026 court order eliminated the SAVE Plan, and federal servicers began notifying affected borrowers in July 2026, giving them at least 90 days to select either the new Repayment Assistance Plan or the Tiered Standard plan before being automatically reassigned. Borrowers who enroll in autopay by September 30, 2026, qualify for a temporary 1-percentage-point interest rate reduction through June 2028, worth roughly $450 in incremental savings on a $30,000 balance compared to the standard discount. The older PAYE and ICR income-driven plans face elimination no later than July 1, 2028, and taking out a new federal loan on or after July 1, 2026, can immediately disqualify borrowers from those plans.