Student loan borrowers enrolled in the SAVE Income-Driven Repayment (IDR) plan were given notice this summer that they needed to find a new plan before a 90-day deadline. For many borrowers, that notice came on July 1, which means that their ninety days are nearly up. SAVE borrowers who fail to change plans before their deadline will automatically be enrolled in the Tiered Standard Plan, which is not a qualifying payment plan for those pursuing PSLF.
Borrowers on the SAVE plan will soon need to select a new payment plan, but may be unfamiliar with the new landscape of available plans. As of July 1, there has been a major student loan shakeup, and just two payment plans are available for new borrowers: the Tiered Standard Plan—in which a borrower’s payment is determined by the amount borrowed—and the Repayment Assistance Plan (RAP), which will determine their payment according to their income. Borrowers with loans taken out before July 1, 2026 still have access to ICR and PAYE, but those will be phased out in 2028. IBR will remain available indefinitely, but still only to borrowers whose loans were taken out before July 1, 2026. Many applicants for PAYE, however, may have issues enrolling, due to recent regulatory changes. Instead, they should look at RAP and IBR and compare which plan will save them more money; both are qualifying plans for PSLF.
In short: if you are currently on the SAVE plan, it’s in your best interest to make the switch to a new plan now. Borrowers who wait risk being placed on the Tiered Standard Plan and having to take a forbearance while they switch later. Give us a call, and we can help you compare payments between existing plans and the new RAP plan. We can even help you plan for future changes to IDR in 2028 and beyond. We’re only a call or email away from getting your student loans back on track.
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