U.S. Government Ends SAVE Plan in Student Loan Overhaul

The Federal government of the United States ended the Saving on a Valuable Education (SAVE) student loan repayment plan in 2026 as part of a comprehensive program overhaul. Federal student loan servicers began issuing exit notices in July 2026 to approximately 7.5 million borrowers, providing them a 90-day window to refinance privately or select a new federal repayment plan.

New options introduced in the overhaul include the Repayment Assistance Plan (RAP), an income-driven alternative designed to replace the Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) plans, both of which are scheduled to sunset by July 1, 2028. For borrowers with Direct Loans disbursed on or after July 1, 2026, a Tiered Standard Plan now serves as the default option.

Parallel to these structural changes, the administration of Donald Trump is appealing a June 2026 court ruling. The ruling blocked an attempt by the administration to disqualify specific employers from Public Service Loan Forgiveness (PSLF) eligibility based on the legality of those employers' activities.