Millions of student loan borrowers will soon need to exit their current repayment program as the Biden-era Saving on a Valuable Education (SAVE) Plan officially comes to an end.
As a result of President Donald Trump’s 2025 One Big Beautiful Bill Act, student loan repayment plans are changing, requiring borrowers to take action. Borrowers enrolled in the the SAVE Plan have been notified this month that they have less than 90 days to choose another repayment plan.
According to CNBC, SAVE borrowers have slowly started to transition out of the plan. Last year, around 7.7 million people were enrolled in the SAVE Plan. As of March around 6.9 million were still enrolled.
The timeline to transfer plans began on July 1. According to a June 25 Department of Education court filing, the earliest exit deadline for the SAVE plan is September 29, 2026. Still, some loan servicers may give borrowers more time to transition.
For instance, federal student loan provider Nelnet said in the FAQ section of its website that borrowers will be notified in waves from July 2026 through March 2027. Borrowers will then have a 90-day enrollment window from the day they are notified.
Those who do not comply within the 90-day window will automatically be enrolled in one of two other plans: a Standard Repayment Plan or a Tiered Standard Plan. Additionally, borrowers may apply for an income-based plan even after the deadline has passed in the event they get automatically enrolled into a plan they can’t afford.
Borrowers may use tools like the Federal Student Aid Repayment Calculator to determine what monthly payments could look like under the new plans. Borrowers are advised to remain on top of payments to avoid going into default (which occurs after 270 days of nonpayment) and having their wages garnished (which the government can do after 360 days of nonpayment on the loan).
