Don’t Ignore This Student Loan Email

The SAVE Plan Is Officially Over. Here’s What 7 Million Borrowers Need to Know

By Becca Craig, CFP®, CeFT®, CSLP®

If you’re one of the millions of student loan borrowers who opened an email from the Department of Education earlier this month and thought, wait… what just happened, you’re not alone. It was abrupt, and it carries real consequences if you don’t act.

The reality of the situation is that the SAVE plan is over. Not paused, not being reworked, not quietly coming back later. But sadly, done After a long legal battle, a federal court shut it down, impacting more than 7 million borrowers who had been relying on it for lower payments and potential forgiveness.

And following the court decision, the Department of Education wasted no time rolling that out. Honestly, it’s probably the quickest they’ve ever acted on anything.

The message itself was clear. If you were enrolled in SAVE or even had an application pending, you now need to choose a new repayment plan. Once your loan servicer contacts you, you’ll have a 90 day window to act. If you don’t, they will move you into a different plan automatically.

That last part matters more than anything. This is not a passive situation or a drill. If you don’t choose, a choice will be made for you, and it may not align with your goals, your cash flow, or any forgiveness strategy you were working toward.

The Department also used this moment to introduce a new option, the Repayment Assistance Plan, or RAP, expected to launch July 1, 2026. Like other income driven plans, payments are based on your income and family size. That sounds appealing, and for some borrowers, it could be. But it’s not a universal solution. In fact, some experts note that RAP may be less generous than prior options and extend repayment timelines, especially for higher earners.

So what can borrowers actually do right now to put themselves in a solid position going forward?

Apply for a new repayment plan through StudentAid.gov, not at the last minute

Apply to change your repayment plan through StudentAid.gov as soon as your window opens. This is the fastest and most direct way to get processed. The Department has already said borrowers can act before their official notice arrives, and doing so can help avoid delays and backlogs.
Waiting until the end of the 90 day window puts you in a reactive position. This is one of those moments where being early actually matters.

If you’re pursuing forgiveness or earn over $100,000, take a hard look at Income Based Repayment (IBR)

If you are aiming for Public Service Loan Forgiveness or any income driven forgiveness and your income is above $100,000, or you and your spouse file jointly and exceed that threshold, IBR deserves a serious look. Under Income Based Repayment, your monthly payment is generally capped at 10% or 15% of your discretionary income. That structure can create more predictable outcomes for borrowers with higher earnings.

There’s another important shift here that hasn’t gotten enough attention. PSLF buyback will no longer use the SAVE plan to calculate buyback amounts. That door is closed, which makes sense given the plan was struck down by the courts. The good news is that buyback still exists, but it will now be calculated using IBR, PAYE, or ICR. If you were counting on buyback as part of your strategy, this change matters more than people realize.

Understand RAP before defaulting into it

RAP will likely be positioned as the default option for many borrowers, especially those earning under 100,000. Payments are tied closely to income, and for borrowers earlier in their careers, that can provide real relief.

But there’s a tradeoff. RAP can extend repayment timelines and may not optimize forgiveness outcomes the same way other plans can. This is where being intentional matters. Just because it sounds simple doesn’t mean it’s the right long term move.

Don’t go it alone

Know that you don’t have to navigate this alone. The rules are evolving quickly, and there’s a real difference between picking a plan that looks good today and choosing one that actually supports your long term outcome. Whether that means working with your financial planner or connecting with someone who holds a CSLP designation, having guidance here can save you time, money, and a lot of frustration.

This moment feels frustrating, and that reaction makes sense. A lot of borrowers built plans around SAVE, and now the ground has shifted. But you’re not stuck. You have options, and you have a clear window to make a thoughtful decision.

The key is simple. Take the 90 days seriously, understand your choices, and make an informed decision for yourself.

About the author

Becca Craig is a professional wealth advisor and financial author known for her expertise in financial planning and student loan repayment strategies. She currently serves as a Wealth Advisor at Focus Partners Wealth and was recognized in AdvisorHub’s 2024 “Advisors to Watch” list.