SAVE student loan borrowers may have 90 days to switch plans
Key takeaways
- More than 300,000 federal student loan borrowers have recently exited the Biden-era Saving on a Valuable Education, or SAVE, plan but millions more remain at risk as the July deadline nears.
- The Department of Education is also changing which repayment plans are available after July 1, so this is one of those moments when checking your account and options now could make a difference.
- Experts urge borrowers to go to studentaid.gov now, review available repayment plans and not wait for the automatic transition.
More than 300,000 federal student loan borrowers have recently exited the Biden-era Saving on a Valuable Education, or SAVE, plan but millions more remain at risk as the July deadline nears. Their loan servicers will contact them around July 1, and they ll have 90 days to enter a new repayment option. Procrastination could limit their choices or lead to higher monthly payments under a standard plan, experts warn.
For borrowers trying to keep payments affordable — or continue making progress toward Public Service Loan Forgiveness or income-driven forgiveness — the key question is what to do before the transition happens automatically. The Department of Education is also changing which repayment plans are available after July 1, so this is one of those moments when checking your account and options now could make a difference.
Experts urge borrowers to go to studentaid.gov now, review available repayment plans and not wait for the automatic transition. Stacey MacPhetres of Bright Horizons said borrowers are strongly encouraged to explore and apply for other income-driven plans before that deadline.