Oscar Wong | Moments | Getty Images
Many federal student loan borrowers could see their monthly bills double or triple in the coming weeks if they don’t opt out of now-eliminated affordable repayment plans.
Earlier this year, the Trump administration warned borrowers they had about 90 days to transfer their savings from a Savings for a Worthy Education (SAVE) plan to another program. This period begins on July 1st for some SAVE borrowers, meaning the deadline is just a few days away on September 29th.
Servicers have been issuing notices to borrowers, giving many borrowers more time.
The Biden administration’s SAVE income-driven repayment plan, which offered many loan holders very low monthly payments, was ultimately overturned by Republican-led legal challenges and legislation. As litigation against the plan unfolded, many SAVE enrollees did not have to pay for more than two years. Meanwhile, their debts have ballooned with interest and progress on loan forgiveness programs has stalled.
More than 6.9 million borrowers were still in SAVE status as of March, with an average debt of nearly $55,000, according to an analysis by higher education expert Mark Kantrowitz. Borrowers were slow to leave the program, and by July 2025, about 7.7 million people were participating in the program.
Many of these borrowers may be taking an “ostrich approach,” Kantrowitz said.
“I hope that if I ignore it, the problem will go away,” he said. “Or you have very limited money and time, so it’s difficult to solve it.”
Here’s what remaining SAVE subscribers need to know about what happens next.
The deadline to exit SAVE varies by borrower
Federal student loan servicers are staggering the times they notify borrowers about the 90-day period to exit SAVE plans. These timelines vary, so borrowers should check their loan servicer account immediately to confirm deadlines.
The earliest a borrower must exit the program is Sept. 29, according to the Department of Education’s court filing. However, the ministry noted that most borrowers will be given additional time.
An FAQ on Nelnet’s website states that the company will continue to issue notices through the end of the year. Meanwhile, the Missouri Higher Education Loan Authority (Mohela) announced that borrowers could receive warnings by October.
Most borrowers will receive the notice via email, but some may receive a letter in the mail, said Michele Zampini, associate director of federal policy and advocacy at the Institute for College Access and Success (TICAS). Zampini said borrowers should make sure their servicer and studentaid.gov account contact information is up to date to avoid missing notices.
To apply for the new income-driven repayment plan, borrowers log into studentaid.gov or their loan servicer’s website and fill out an application. Borrowers can opt-in to allow the department to obtain income information directly from the IRS to expedite application processing.
If you submit an application for a new repayment plan, expect delays. The Department of Education is grappling with a backlog of income-based repayment plan applications, with more than 530,000 applications pending as of the end of April, the department reported in a court filing in May.
If you do nothing, you could be left with a hefty bill.
Borrowers who do not select a different repayment plan within 90 days of being notified will be placed on either the Standard repayment plan or the new tiered Standard plan that will be rolled out on July 1st. The SAVE plan calculated payments based on 5% of the borrower’s discretionary income, while the Standard plan divides the borrower’s debt into fixed payments over a period of time.
“Payments for some borrowers could double or triple,” Kantrowitz said.
Payments for some borrowers could double or triple.
Borrowers enrolled in one of the Department of Education’s other income-based repayment plans can secure lower monthly payments than the standard option.
For example, a new IDR plan launched in July, the Repayment Assistance Plan (RAP), limits monthly payments to 1% to 10% of a borrower’s income and provides loan forgiveness after 30 years. This plan also introduces benefits not available in the standard plan, such as a $50 monthly discount for each eligible dependent.
A two-person household with an income of just over $50,000 and $60,000 in student loans at a 6.8% interest rate would pay $690 per month under a standard 10-year repayment plan, according to an analysis provided to CNBC by Summer, a student loan advisory platform. Under RAP, that payment drops to just $158.
“Even if you haven’t made the switch yet, we encourage you to calculate what you’ll pay on your next best income-driven plan now and start budgeting around that number today,” said Rich Williams, Summer’s chief customer officer.
“It’s better to be financially prepared than to be surprised by a high payment,” Williams said.
