If you were on SAVE (Saving on a Valuable Education), your plan is ending. Here is what happened and what to do.
What happened to SAVE
SAVE was the most generous income-driven plan, charging 5% of discretionary income for undergraduate loans with a 225%-of-poverty deduction. It was blocked and then vacated by the federal courts in 2025-2026, and interest resumed on SAVE in August 2025. Under OBBBA, SAVE is being eliminated along with PAYE and ICR.
The timeline
| Date | What happens |
|---|---|
| August 2025 | Interest resumes on SAVE loans |
| July 1, 2026 | SAVE borrowers prompted to pick a new plan |
| ~90 days after July 1, 2026 | Choose IBR or RAP, or be reassigned |
| July 1, 2028 | ICR, PAYE and SAVE eliminated for everyone |
Source: U.S. Department of Education and Federal Student Aid, as of June 2026.
Your two main options
Most former SAVE borrowers will move to:
- IBR - 10% of discretionary income (15% for pre-2014 borrowers), forgiveness in 20-25 years, counts toward PSLF, available to anyone whose first loan is before July 1, 2026.
- RAP - 1-10% of total AGI minus $50/dependent, unpaid interest waived, forgiveness in 30 years, counts toward PSLF.
Compare them with the plan comparison calculator and our RAP vs IBR guide.
Watch your payment count
The biggest open question is whether SAVE forbearance months count toward IDR forgiveness or PSLF. This is unsettled - verify your qualifying-payment count with your servicer and at studentaid.gov before assuming it carried over.
See the full OBBBA timeline and the SAVE plan status page.
General information, not financial or legal advice. Verify with your servicer and studentaid.gov.