Save student loan plan ends, leaving millions of US borrowers 90 days to find a new one
Summary
The Save student loan repayment plan has ended, affecting over 7 million American borrowers. Those on the Save plan have 90 days to choose a new repayment plan as the U.S. student loan system undergoes major changes following a 2026 court ruling and new federal laws.Key Facts
- The Save plan started in 2023 and aimed to reduce undergraduate loan payments by half.
- A 2026 federal court ruling declared the Save plan unconstitutional.
- Borrowers on Save must pick a new repayment plan within 90 days.
- Older loans (before July 1, 2026) can use existing income-based plans like IBR, Paye, and ICR, though some will end by 2028.
- New borrowers after July 1, 2026, will have two new options: the Repayment Assistance Plan (RAP) or a tiered standard repayment plan.
- RAP bases payments on adjusted gross income, with monthly payments between 1% and 10% of income if over $10,000, or $10 if under, and loan forgiveness after 30 years.
- Some experts and borrowers worry about payment affordability and administrative issues during this transition.
- The changes may lead some students to reconsider their future plans due to higher debt costs.
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