Some federal student loan borrowers previously enrolled in the now-defunct Saving on a Valuable Education (SAVE) repayment plan must decide on a new repayment option soon. They risk being automatically assigned to an alternative plan if they miss the deadline.

Deadline Details

The initial deadlines for some borrowers will be September 29. This date marks 90 days since federal loan servicers began notifying SAVE borrowers on July 1. However, September 29 is not a blanket deadline. Borrowers receive notices in waves and have 90 days from the date of their individual notice to choose another plan.

SAVE is no longer an option due to a federal court order earlier this year. The U.S. Department of Education stated that borrowers who miss the 90-day decision window will automatically transition to either the Standard Repayment Plan or the new Tiered Standard Plan unless they actively choose another option. Borrowers should note that these default plans may not be as affordable because they are based on loan balance, not income.

“For those who selected SAVE for its lower income-based payments, the automatic move could lead to higher monthly bills,” explained Kaydee Ambas, a consumer finance educational instructor at Earnest to Newsweek.

Who Needs to Act?

The deadline is immediate for borrowers who received notices at the start of July. For example, a notice dated July 1 means a September 29 deadline. Notices sent later have correspondingly later deadlines.

Loan servicers follow varying schedules. MOHELA notifies borrowers in waves between July and October. Edfinancial sent SAVE notifications between July 1 and August 15.

Ambas advised borrowers to log into their servicer accounts, confirm their deadlines, and use the federal Loan Simulator to evaluate costs under IBR, RAP, and standard repayment.

Federal Student Aid offers a repayment calculator to help borrowers compare eligible plans, including estimated monthly payments and total costs.

“Missing the deadline may result in an unaffordable payment plan set by the government,” said Ambas.

Consequences of Inaction

Borrowers who miss their deadlines will not remain in the SAVE plan. Instead, they will automatically move to a Standard Repayment Plan or Tiered Standard Plan, based on their loans and disbursement dates.

For borrowers with loans disbursed before July 1, 2026, the Standard Plan typically involves fixed payments over 10 years. The new Tiered Standard Plan allows fixed repayment periods of 10, 15, 20, or 25 years, determined by the total debt.

Available Options

John Wittelsberger, a certified financial planner specializing in education planning, noted that the Standard Plan suits those who can afford larger payments and want a clear end date.

“The standard repayment plan offers fixed payments and a defined timeline,” Wittelsberger told Newsweek.

For higher-income borrowers, the Standard Plan can reduce total interest compared to longer repayment periods.

The new Repayment Assistance Plan (RAP), available since July 1, bases payments on adjusted gross income and the number of dependents. Payments vary from $10 per month to 10% of adjusted gross income, reducing by $50 monthly for each qualifying dependent. The repayment period can last up to 30 years.

Wittelsberger highlighted RAP’s flexibility during high expenses, job changes, or irregular income. However, a lower payment extends the repayment term.

Some borrowers might qualify for Income-Based Repayment (IBR), where payments are usually 10% or 15% of discretionary income. Payments under IBR are capped at the 10-year Standard Plan amount. Loan balances might be forgiven after 20 or 25 years, contingent on borrower specifics.

Federal Student Aid advises borrowers to check their StudentAid.gov dashboard for loan details, which affect available repayment plans.