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By Suzanne Blake
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Millions of federal student loan borrowers are facing an important deadline this month as the Trump administration continues winding down the Biden-era SAVE repayment plan.
According to the Department of Education, roughly 1.5 million of the 7.5 million borrowers previously enrolled in the Saving on a Valuable Education (SAVE) plan have already selected a new repayment option as of this week.
That leaves about 6 million borrowers who have yet to make a switch, but the first major deadline is arriving on September 29.
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"The biggest alteration is not simply the end of one repayment plan, but the return of actual monthly payments under a new system that can look very different from what they were paying before," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
Why It Matters
The deadline affects millions of Americans carrying federal student loan debt.
SAVE was the centerpiece of the Biden administration's efforts to make student loan payments more affordable. The plan lowered monthly payments for many borrowers through easier pathways to forgiveness and also prevented some unpaid interest from accumulating. However, the Trump administration eliminated the program earlier this year after a lengthy legal battle.
Borrowers who do not act could ultimately find themselves enrolled in repayment plans with significantly higher monthly costs than they were paying under SAVE.
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What To Know
Servicers began notifying SAVE borrowers on July 1 that they would have 90 days to select a new repayment plan, and the first group of borrowers will reach that deadline on September 29.
A spokesperson for the Department of Education told Newsweek that 1.5 million borrowers had already transitioned to new repayment plans as of this week.
"We’re pleased that nearly 1.5 million borrowers have already selected a new repayment plan, allowing them to make progress toward paying down their balances and access loan discharge benefits that current SAVE borrowers are missing out on," the spokesperson said.
The department previously said approximately 80 percent of SAVE borrowers have not yet left the program. Some borrowers are likely waiting until they receive official notices from their loan servicers before taking action, while others have proactively switched plans so they can still earn credit toward federal forgiveness programs like income-driven repayment forgiveness and Public Service Loan Forgiveness (PSLF).
Borrowers who fail to select a new repayment option by their deadline could be placed into a standard repayment plan that carries the highest monthly payments.
"Borrowers who do not choose a new plan will be automatically moved into a new repayment plan, which could result in higher monthly payments," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "For some borrowers, this could create additional financial strain."
What Is the SAVE Plan?
SAVE, which stands for Saving on a Valuable Education, launched during the Biden administration as an income-driven repayment plan that could lower monthly payments based on borrowers' income and family size.
However, the program became the subject of legal challenges brought by Republican-led states, which argued the administration lacked authority to implement key parts of the plan. Courts ultimately blocked major portions of SAVE, and the Trump administration moved to end the program altogether.
At its peak, roughly 7.5 million to 7.7 million borrowers were enrolled in the plan.
Borrowers Reporting Problems During the Transition
The transition away from SAVE has not been seamless.
Some borrowers who switched repayment plans have received incorrect billing statements, whereas others got notices suggesting they were delinquent or approaching default despite believing their accounts were in good standing.
The Department of Education said it was aware of the problems and had resolved them, but some borrowers said the errors created confusion about how much they owe.
"For SAVE borrowers, expect continued uncertainty and stress as reported glitches and administrative errors remain within the student loan system," Thompson said.
What Happens Next
The first deadline is on September 29 for the initial group of SAVE borrowers who received notices in July.
"Borrowers who miss their individual 90-day deadline can be automatically placed into a Standard or Tiered Standard plan, potentially producing a substantially higher bill and delaying progress toward forgiveness programs," Beene said.
"Going into 2027, many former SAVE borrowers should expect payments to resume under RAP or a fixed-payment plan, so the safest course is to compare options now rather than wait to be automatically enrolled."
Contact Newsweek editors on this story: Jason Lemon and Geoffrey Rowland.
Update, 09/16/2026 10:59 a.m. ET: this article was updated with comment from a spokesperson for the Department of Education.
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