The clock is ticking for some student-loan borrowers to find a new repayment plan.
September 29 is the first deadline for certain borrowers to transition off the SAVE plan, a Biden-era income-driven plan that gave borrowers cheaper monthly payments and a shorter timeline to debt relief.
If borrowers do not select a new plan themselves, they’ll automatically be transferred to a standard repayment plan and face the most expensive monthly payments.
President Donald Trump’s administration eliminated SAVE, and beginning July 1, student-loan servicers started notifying borrowers of their 90-day timeframe to transition to a new plan. The borrowers who received those first notices at the beginning of July have until the end of September to transition.
The notices have occurred in waves, and some borrowers are still waiting to receive their timeframe. Servicers expect to send out notices to all SAVE borrowers by the end of 2026.
Since Trump’s student-loan repayment overhaul took effect on July 1, which included the elimination of SAVE and the introduction of new repayment plans, borrowers have reported higher monthly bills, errors in their payment calculations, and challenges in receiving assistance from their servicers. Some borrowers who transitioned off SAVE are facing payments that are hundreds of dollars higher.
An ongoing lawsuit is seeking to halt the forced transfer of borrowers off the SAVE plan if they do not transition voluntarily within their given timeframe. Democratic lawmakers have also pushed for this: in April, Sen. Elizabeth Warren led some of her colleagues in calling on the Education Department to extend the timeframe borrowers have to move off SAVE.
“These borrowers deserve to have the time, critical information, and support necessary to successfully enroll in another affordable repayment plan and continue to pay down their loans,” the lawmakers said.
The department has stood by its 90-day timeframe. Nicholas Kent, the agency’s undersecretary, said in a statement that it gives borrowers “ample time to explore repayment options that best suit their needs and plan accordingly.”
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