Borrowers Face November 1 Deadline to Replace SAVE Plan
The U.S. Department of Education warns student-loan borrowers to select new repayment plans by November 1 after the Trump administration eliminated the SAVE program.
Student-loan borrowers enrolled in the Biden-era SAVE plan must select a new repayment plan by November 1 following the program's elimination by the Trump administration. Those who fail to transition by the deadline risk automatic placement in standard or tiered plans, which are the most expensive available options.
The U.S. Department of Education reports that nearly 2 million of the 7.5 million borrowers currently on SAVE have already chosen a new plan. While the department recommends the new Repayment Assistance Plan, some borrowers report that this income-driven alternative is less generous than SAVE, resulting in payment spikes.
This transition occurs amid a crisis in loan repayment. Defaults have reached a record high, with 9.3 million borrowers currently in default and an additional 1.3 million projected to default within the next six months.
