July 18, 2026
Borrowers who fail to choose a new repayment plan will be automatically enrolled.
Millions of federal student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment program are being told they have 90 days to select a new repayment option after the U.S. Department of Education began issuing notices on July 15, as the administration continues dismantling the income-driven plan. The change affects borrowers whose loans have remained in administrative forbearance while litigation over SAVE has played out in federal court, Forbes reports.
According to the U.S. Department of Education, borrowers who fail to choose a new repayment plan before their individual deadlines will be automatically enrolled in the Tiered Standard Repayment Plan, an option that could increase monthly payments depending on loan balances and income. The department said borrowers can instead apply for eligible repayment plans, including the long-standing Income-Based Repayment (IBR) program.
“The Department is providing borrowers with a 90-day window to select a new repayment plan,” the Education Department said in its notification to affected borrowers. “If no selection is made, borrowers will be placed into the Tiered Standard Repayment Plan.”
The transition follows a series of federal court rulings that blocked implementation of key portions of the SAVE plan, preventing the Education Department from continuing the program while legal challenges proceed. The Trump administration has since moved to wind down SAVE and transition borrowers into repayment plans that remain authorized under federal law.
The SAVE plan, introduced during the Biden administration, lowered monthly payments for many borrowers by tying payments to discretionary income and, in some cases, reducing them to $0. Millions of borrowers have remained in payment limbo as the legal dispute unfolded.
Borrowers are encouraged to review all available repayment options before their deadlines because monthly payment amounts, interest costs, and long-term student loan forgiveness eligibility vary by plan. Additional information and repayment applications are available through the U.S. Department of Education’s Federal Student Aid website, where borrowers can compare available options before automatic enrollment occurs.
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