Millions of Student Loan Borrowers Face Repayment Plan Deadline

Millions of federal student loan borrowers are being notified that they have less than 90 days to transition out of the Biden-era Saving on a Valuable Education (SAVE) Plan. This change is a result of President Donald Trump’s 2025 One Big Beautiful Bill Act, which mandates alterations to student loan repayment plans. As of March, approximately 6.9 million borrowers were still enrolled in the SAVE Plan, down from 7.7 million last year. The timeline for borrowers to transfer plans began on July 1, 2026.

According to a June 25 Department of Education court filing, the earliest deadline for exiting the SAVE plan is September 29, 2026. However, individual loan servicers may offer extended transition periods. For example, Nelnet, a federal student loan provider, indicated in its website FAQs that borrowers will receive notifications in waves between July 2026 and March 2027. Each borrower will then have a 90-day enrollment window from the date of their notification to select a new plan.

Borrowers who do not actively choose a new repayment plan within their 90-day window will be automatically enrolled into either a Standard Repayment Plan or a Tiered Standard Plan. It is also possible for borrowers to apply for an income-based repayment plan even after the automatic enrollment deadline, particularly if the default plan is unaffordable. The Federal Student Aid Repayment Calculator is available for borrowers to estimate their potential monthly payments under different plans. To avoid default, which occurs after 270 days of nonpayment, and subsequent wage garnishment after 360 days of nonpayment, borrowers are strongly advised to stay current with their loan payments.