Court-Ordered End of SAVE Plan Moves 7 Million Borrowers to Fixed or Income-Based Repayment Starting July 2026

The Save repayment plan will be dismantled effective 1 July 2026 after a federal appeals court ruling in March. More than 7 million Americans enrolled in the plan will have 90 days to choose a different repayment option. Borrowers with loans issued before 1 July 2026 who do not plan to take out more loans will retain access to the income-based repayment, pay as you earn, and income contingent repayment plans.

Borrowers who do not apply for another plan will be automatically enrolled in a fixed-income plan. Standard fixed-payment plans are set to ensure loans are paid off within 10 years.

Borrowers taking out new loans after 1 July 2026 will have access to the Repayment Assistance Plan and the tiered standard plan. Under the Repayment Assistance Plan, if adjusted gross income exceeds $10,000, monthly payments range from 1% to 10% of adjusted gross income; if adjusted gross income is $10,000 or below, the payment is $10.

Loans under the Repayment Assistance Plan are forgiven after 30 years.

The tiered standard plan requires payments of at least $50 per month lasting 10 to 25 years depending on initial balance. The Save plan was launched in 2023 by the Biden administration. The changes stem from the Trump administration’s One Big Beautiful Bill Act signed last summer and the March federal appeals court ruling.

The Department of Education has said the overhaul simplifies the student debt system. ” Natalia Abrams, president of the Student Debt Crisis Center, said the shift affects every borrower through added confusion. “I’ve worked in this space for more than 15 years, and I’ve never seen it this bad, and I’ve never seen it change this much, this frequently,” she said.