Navigating the End of SAVE in 2026

After five years of near-constant change, the federal government is acting to stabilize student loan repayment. Over the next several months, you can expect:

• The SAVE Plan to officially end
• The ICR and PAYE plans to begin winding down
• A new repayment plan to replace SAVE, ICR and PAYE

While the details are in flux, we have a much clearer picture than a few months ago. This article will guide you through what we know today and what to pay attention to in the coming months.

The End of SAVE

Last year, a federal court ruled the SAVE Plan was illegal. But a program that large can’t be undone in a day. SAVE has lingered on, zombie-like, for months. A new legal settlement between the Department of Education (ED) and the state of Missouri promises to permanently end it.

The agreement is pending approval by a federal court, but ED has already stopped enrolling borrowers in SAVE and is denying new applications.

Impact on SAVE Borrowers

Over 7 million borrowers are currently enrolled in SAVE. Once the settlement is approved, they will be:

1. Transferred to a different repayment plan with a new monthly payment amount
2. Removed from the special forbearance that was tied to Missouri’s lawsuit
3. Expected to resume monthly payments

While an exact timeline has not been finalized, ED is advising borrowers prepare for the changes now.

Options for SAVE Borrowers

If you’re a borrower on the SAVE plan, you have several options to investigate. These plans may not match all the benefits of SAVE plan, but they do offer low monthly payments.

• Income Based Repayment (IBR)— Available for individuals who meet certain income requirements. Worth researching if you need a low monthly payment and want the possibility of eventual loan forgiveness.
• Income Contingent Repayment (ICR) and Pay As You Earn (PAYE)— Both of these plans will be phased out in 2028, but are currently available. They won’t be a good long-term solution, but they could serve as a stop-gap if you don’t qualify for IBR.
• Repayment Assistance Plan (RAP) — This plan was approved by Congress in 2025 and will roll out in 2026. It will offer monthly payments as low as $10 a month depending on your adjusted gross income.

Research the plan that’s best suited to your income, family size and long-term goals. If you don’t make an active choice, the government will assign a plan to you. There’s no guarantee that it will be the right fit.

What You Can Do Today

Making a final decision can be difficult when the details are still being sorted out. In the meantime, you can take steps now to set yourself up for future success:

• Update your contact info — Make sure your name, email, phone number and address are all current on StudentAid.gov and your loan servicer’s website. Missing important notifications could lead to late payments, fines and negative credit reporting before you’re aware of any missed payments.
• Watch for updates — Federal Student Aid’s IDR court actions page is the primary official source for updated guidance. It will be refreshed as the court acts on the settlement and implementation details are finalized.
• Explore your options — You can explore your current repayment options today using the Loan Simulator on StudentAid.gov. It allows you to compare estimated monthly payments and long-term costs under IBR and other available plans.

How to Get Help

Your student loan servicer provides you with FREE assistance. If you don’t know who your loan servicer is, follow these instructions. If calling your servicer feels intimidating, read our tips on how to make your call less stressful.

You also can call Student Connections at (866) 311-9450. Our Borrower Advocates can help you navigate the situation and provide guidance on next steps. Our services are paid for by schools across the country and are FREE to you.