SAVE Plan Borrowers: What Happens to Your Loans Before the July 2028 Deadline
If your federal loans are in SAVE (also called REPAYE), PAYE or ICR, you must elect a new plan before July 1, 2028: the Repayment Assistance Plan (RAP), Income-Based Repayment (IBR), or a standard, graduated or extended plan. If you do nothing, the Department places loans eligible for RAP into RAP, and the rest into IBR, on July 1, 2028. Taking out any new Direct Loan on or after July 1, 2026 closes the old plans to you sooner.
Where the SAVE plan stands in 2026
In the regulation, SAVE is not a separate plan: 34 CFR 685.209(a)(1) lists the Revised Pay As You Earn (REPAYE) plan, which may also be referred to as the Saving on a Valuable Education (SAVE) plan. The May 1, 2026 final rule implementing the Working Families Tax Cuts Act (Public Law 119-21) describes its status:
- The SAVE/REPAYE plan was enjoined in its entirety by the 8th Circuit on February 18, 2025, and the Department states it is enjoined from implementing SAVE because it has been held unlawful in federal court.
- Under Missouri v. Trump, the SAVE Plan Final Rule was vacated in full; the Department said it would provide further guidance.
- The Department placed borrowers enrolled in REPAYE/SAVE in a forbearance in August 2024.
- The Department acknowledges that some borrowers will pay more under RAP than they did under SAVE.
The regulation still allows REPAYE through June 30, 2028, but only for a borrower who has not received a Direct Loan on or after July 1, 2026 (34 CFR 685.209(c)(2)). The same new-loan condition applies to PAYE and ICR.
The July 1, 2028 deadline and the default
The transition rule is 34 CFR 685.209(c)(7). Its text names borrowers repaying under PAYE and ICR, or in an administrative forbearance associated with them, and it cross-references paragraph (a)(1), which is REPAYE/SAVE. The final rule's preamble is explicit: borrowers repaying under REPAYE, PAYE or ICR must elect RAP, IBR, or the standard, graduated or extended plans, and the statute directs the Secretary to make sure borrowers in an income-contingent plan, including REPAYE (SAVE), choose before July 1, 2028.
Your options before July 1, 2028
| Option | Key point from the regulation |
|---|---|
| Repayment Assistance Plan (RAP) | Open to any Direct Loan borrower with eligible loans; not available for Parent PLUS loans or consolidations that repaid them |
| Income-Based Repayment (IBR) | Only Direct Loans made before July 1, 2026; barred if 60+ qualifying REPAYE payments made on or after July 1, 2024 |
| Standard, graduated or extended plans | Listed among the permitted elections in 685.209(c)(7) |
| Stay in PAYE or ICR | Only through June 30, 2028, and only with no Direct Loan received on or after July 1, 2026 |
| Do nothing | On July 1, 2028: RAP for loans eligible for it, IBR for loans that are not |
A borrower who elects a plan starts repaying under it on July 1, 2028, but may elect to start earlier. Congress did not allow the Department to grandfather anyone into the old income-contingent plans beyond that date, according to the final rule.
How the Repayment Assistance Plan payment is calculated
RAP uses a base payment set by adjusted gross income (AGI) bands in 34 CFR 685.209(b)(2): $120 for AGI of $10,000 or less, then 1% of AGI for $10,001 to $20,000, rising one point per $10,000 band up to 9% for $90,001 to $100,000, and 10% above $100,000. The monthly payment is that base payment divided by 12, minus $50 for each dependent, with a minimum of $10.
- AGI $8,000, no dependents: base payment $120; $120 / 12 = $10 a month.
- AGI $45,000, no dependents: 4% band; $45,000 x 4% = $1,800; $1,800 / 12 = $150 a month.
- AGI $45,000, two dependents: $150 minus (2 x $50) = $50 a month.
- AGI $45,000, three dependents: $150 minus $150 = $0, raised to the $10 minimum.
Three features matter for SAVE borrowers worried about balance growth. For each on-time payment, interest not covered by that payment is not charged. If an on-time payment reduces principal by less than $50, the Department reduces principal by the difference, up to the lesser of $50 or the payment made. Forgiveness comes after 360 qualifying monthly payments over at least 30 years. Paying ahead advances the due date and can forfeit these subsidies unless the borrower opts out of advancing it.
What counts toward RAP's 360 payments
Qualifying payments include on-time RAP and Tiered Standard payments, IBR payments, payments under another plan at least equal to a 10-year standard payment, and payments under an income-contingent plan made before July 1, 2028, among others listed in 685.209(k)(8). Whether months in the SAVE litigation forbearance can count toward RAP is not settled by the sources in this base; the final rule addresses them only for IBR forgiveness, so check with your servicer.
If you are leaning toward IBR
IBR remains available for Direct Loans made before July 1, 2026. The payment is the lesser of a share of discretionary income (income above 150% of the poverty guideline), divided by 12, or the 10-year standard payment based on balances when you entered the plan:
- 10% for a new borrower under IBR, with forgiveness after 240 payments over at least 20 years.
- 15% for other borrowers, with forgiveness after 300 payments over at least 25 years.
- A borrower with 60 or more qualifying REPAYE payments on or after July 1, 2024 may not enroll in IBR.
- Per the final rule, payments under SAVE/REPAYE, and months in the litigation forbearance from August 2024, do not count toward IBR forgiveness; RAP payments do not count toward IBR forgiveness either.
PSLF, Parent PLUS and the new-loan trap
For Public Service Loan Forgiveness, 34 CFR 685.219 lists qualifying plans that include any income-driven plan under 685.209, the Repayment Assistance Plan, and an income-contingent plan for which a payment was received on or before June 30, 2028. Moving to RAP or IBR therefore keeps a PSLF pathway, provided the other conditions, including 120 qualifying payments, are met.
- New Direct Loan after July 1, 2026: you lose access to REPAYE, PAYE and ICR, and your new loans can only go into Tiered Standard or RAP (34 CFR 685.210).
- Parent PLUS borrowers: these loans, and consolidations that repaid them, are excepted from RAP. The final rule explains that Parent PLUS loans consolidated before July 1, 2026, with at least one IDR payment made through July 1, 2028, are moved to IBR and keep PSLF eligibility. A parent who takes any new Direct Loan on or after July 1, 2026 must repay Parent PLUS under Tiered Standard, which does not qualify for PSLF.
A practical checklist
- Confirm which plan each loan is in (REPAYE/SAVE, PAYE, ICR) and whether any is a Parent PLUS or a consolidation of one.
- Check whether you received any Direct Loan on or after July 1, 2026.
- Count your qualifying REPAYE payments since July 1, 2024 if you are considering IBR.
- Estimate your RAP payment from your AGI and number of dependents claimed on your tax return.
- If you pursue PSLF, keep employment certifications current and choose a qualifying plan.
- Elect before July 1, 2028; otherwise the default applies.
The sources in this base do not include poverty guideline amounts for 2026, servicer procedures or the future guidance announced after the Missouri ruling; check StudentAid.gov or your servicer for those. To test your situation against the regulation, ask the Kopik base on federal student aid a question such as "I'm currently on the SAVE plan, do I need to do anything before 2028?"
Compare your repayment options with the source
Ask about RAP payments, IBR eligibility or PSLF; the FAFSA and federal loans base answers from 34 CFR 685.209, 685.210, 685.219 and the 2026 final rule.
Sources: 34 CFR 685.209 (eCFR, up to date as of October 1, 2026) and the May 1, 2026 final rule. General information, not financial advice.
Frequently asked questions
Is the SAVE plan ending?
Yes. The final rule states SAVE has been enjoined and held unlawful, and the statute directs borrowers in income-contingent plans, including REPAYE (SAVE), to choose RAP, IBR or another authorized plan before July 1, 2028.
What happens if I don't choose a new plan by July 1, 2028?
Under 34 CFR 685.209(c)(7)(iii), the Department places loans eligible for the Repayment Assistance Plan into RAP and loans ineligible for RAP into IBR, effective July 1, 2028.
How much will I pay under RAP?
Your base payment depends on AGI: $120 up to $10,000, then 1% to 10% of AGI by $10,000 bands. Divide by 12 and subtract $50 per dependent; the minimum monthly payment is $10.
Do my SAVE forbearance months count toward forgiveness?
According to the final rule, months in the forbearance caused by the SAVE litigation from August 2024, and payments under SAVE/REPAYE, do not count toward IBR forgiveness.
Does RAP qualify for Public Service Loan Forgiveness?
Yes. 34 CFR 685.219 lists the Repayment Assistance Plan as a qualifying repayment plan. Income-contingent plan payments count only if received on or before June 30, 2028.
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