For some student loan borrowers, the clock is ticking look for a new payment plan.
September 29 is the first deadline for certain borrowers to switch to the SAVE plan, a Biden-era income-driven plan that gave borrowers cheaper monthly payments and a shorter timeline for debt relief.
If borrowers do not select a new plan themselves, they will automatically be moved to a standard repayment plan and face the most expensive monthly payments.
President Donald Trump’s administration eliminated SAVE, and as of July 1, student loan servicers began notifying borrowers of their 90-day deadline to switch to a new plan. Borrowers who received the first reminders at the beginning of July have until the end of September to switch.
The notices have come in waves and some borrowers are still waiting for their deadlines. Servicers expect to send notices to all SAVE borrowers by the end of 2026.
Since Trump’s overhaul of student loan repayments 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 difficulty receiving help from their servicers. Some borrowers who switched from SAVE are facing payments that are hundreds of dollars higher.
An ongoing lawsuit seeks to do so stop the forced transfer of borrowers who do not use the SAVE plan if they do not voluntarily switch within the specified period. Democratic lawmakers have also been pushing for this: In April, Senator Elizabeth Warren galvanized some of her colleagues in calling on the Department of Education to extend the deadline borrowers have to transition out of SAVE.
“These borrowers deserve to receive the time, critical information and support needed to successfully enroll in another affordable repayment plan and continue making their loan payments,” the lawmakers said.
The department has adhered to the 90-day deadline. Nicholas Kent, the agency’s undersecretary, said in a statement that it gives borrowers “ample time to explore the repayment options that best fit their needs and plan accordingly.”
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