WASHINGTON, D.C. — The U.S. Department of Education on March 27 sent emails to more than 7 million borrowers enrolled in the SAVE repayment plan informing them that the plan has ended and that they should prepare to restart payments on a new plan. The email had the subject line: "Action Required: The SAVE Plan has ended, and you must select a new repayment plan."

Student-loan servicers will contact borrowers with specific deadlines to enroll in a new repayment plan beginning July 1. After notification by their servicers, borrowers will have 90 days to restart payments on a new plan. Borrowers who do not select a new repayment plan within their given timeline will be automatically moved to a new plan.

"The plan you will be moved to depends on your circumstances," the Department of Education said in the email. "ED and your loan servicer will provide details about which repayment plan you will be moved to if you don't choose a plan by the deadline set by your servicer," the department added.

The department encouraged borrowers to switch plans and begin payments as soon as possible rather than waiting until July. Interest charges on SAVE accounts restarted in August 2025, and resuming payments would prevent account balances from increasing. Borrowers will have more time to plan for new payments and adjust their budgets if they switch plans and begin payments now, and starting payments sooner will allow borrowers to pay off their debt more quickly.

Borrowers enrolled in the Public Service Loan Forgiveness program can resume progress toward loan relief if they restart payments. Switching to an income-driven repayment plan will put borrowers back on track for discharge once they have reached the qualifying threshold.

The SAVE plan was created by former President Joe Biden and offered lower monthly payments and a shorter timeline to loan forgiveness. The plan was blocked in July 2024 following legal challenges, during which enrolled borrowers were not required to make payments. A federal court later approved a settlement to end the SAVE plan earlier than its originally scheduled phase-out. The settlement requires borrowers to transition to new repayment plans and face higher monthly payments years ahead of schedule.

President Donald Trump's spending legislation would have phased out the SAVE plan in 2028. That same legislation eliminates existing income-driven repayment plans.

Beginning in July, borrowers will have the option to enroll in a standard repayment plan or the new Repayment Assistance Plan. The Repayment Assistance Plan calculates monthly payments based on income and provides loan forgiveness after 30 years. The plan is less generous than existing income-driven repayment plans.