Summary
The U.S. Department of Education informed student loan borrowers that the "Saving on a Valuable Education" (SAVE) Plan is no longer available. Borrowers must switch to a different repayment plan to avoid being moved to the more costly standard repayment or the soon-to-launch "Tiered Standard Plan."
Key Facts
- The SAVE Plan was an income-driven repayment option started under President Joe Biden in 2023.
- It aimed to offer lower payments based on income and possible debt forgiveness for some borrowers.
- A court terminated the SAVE Plan, saying the administration exceeded its authority.
- Borrowers need to find alternative repayment plans by July 1 or be moved to other options.
- About 7.5 million borrowers are affected by the end of the SAVE Plan.
- Borrowers will have 90 days to choose a new plan after receiving notice from loan servicers.
- The "Tiered Standard Plan" will begin on July 1, offering different repayment lengths.
