SAVE Plan Ends: 8 Key Steps for Borrowers

If you’re one of the 7.7 million on the SAVE plan, you should be aware that it’s ending. Recent changes from the new bill may feel discouraging, but taking steps now helps protect your credit, finances, and emotional well-being.

Before diving into the action steps, let’s clarify what the SAVE Plan actually is.

The SAVE Plan (Saving on a Valuable Education) was an income-driven repayment (IDR) option offered by the U.S. Department of Education. It eased pressure by linking payments to income and family size.

This led to:

• Lower monthly payments, especially for undergrads
• Subsidies to keep the balance from growing if income-based payments couldn’t even cover interest
• 0 interest for some borrowers
• Faster loan forgiveness for smaller balances (10 years vs 25) for loans in good standing

SAVE helped prevent interest from piling up for those who needed support. If you were on REPAYE, you were automatically moved to SAVE when it started. You can confirm whether or not you’re on the SAVE Plan by logging into either the studentaid.gov site or your lender’s portal and seeing if your repayment plan is labeled as SAVE or Saving on Valuable Education.

To prepare yourself for upcoming changes, here’s what to do first.

Step 1. Learn the Timeline

Those currently on the SAVE plan should be aware that, starting August 1, 2025, interest will resume accruing on your student loan balance. However, you will not be charged any interest that was forgiven before August 1, 2025. However, going forward, a larger portion of every payment you make will be allocated toward interest.

Federal law ends SAVE for good, closing it to new borrowers as of a specified date. On July 1, 2026, a new income-based Repayment Assistance Plan will begin, and existing plans will remain available after SAVE ends.

Step 2: Review Your Current Loan Status

Before anything changes, look at your current situation.

Log in to your lender’s portal and confirm the details.

• What’s the balance?
• How much interest have you accrued?
• What’s your interest rate?
• What’s your current repayment plan look like?
• How is your repayment being calculated based on family size, loan type, and income?

This is your starting point to determine your future plan of action.

Step 3: Update Your Income and Family Size Information

When repayment calculations change, your information needs to be accurate.

Not only might this impact your payments directly. It could influence recommendations from your lender regarding the best plan for you.

Submit any necessary documents as soon as possible. Updating now might result in a slight payment increase, but it’s better than facing a significant jump later.

Step 4: Check Eligibility for Existing Income-Based Repayment Plan

To determine if you’re eligible for one of the IDR plans that continue to exist, go to https://studentaid.gov/idr/.

If eligible, contact your lender to transfer your account to a new plan for continued consideration of IDR.

Step 5. Check Eligibility for Other Forgiveness Programs

The end of the SAVE plan doesn’t necessarily mean you don’t have student loan repayment options, including potential loan forgiveness.

The most notable is Public Service Loan Forgiveness (PSLF), which wipes out debt after 120 qualifying payments if you work full-time for a government, nonprofit, or tribal employer.

You may qualify for state programs you never considered, as you were previously on SAVE, and now is the perfect time to check.

Step 6: Contact Your Loan Servicer Early

It might feel overwhelming, but don’t wait to contact your lender to ask about IDR plans and student loan refinance options. Waiting to do so could be costly.

To begin, ask the following about your student loans:

• “What plan will I default into if I don’t act?”
• “What will my payment be under that plan?”
• “Which repayment options are available to me, and how do they compare?”

If payments go up too much after the SAVE plan ends, they may be able to help you lower your payments by deferring some interest. This could make it easier to manage payments on your current budget. But you might pay more on your student loans over time.

Alternatively, they may be able to offer you a lower interest rate, thereby reducing the total amount you’ll have to repay over time.

Be sure to review the terms and fees carefully so you can compare your options.

Step 7: Explore Other Student Loan Refinance Options

It’s also worth your time right now to look at other lenders to see if you can get better terms elsewhere. They may be able to consolidate multiple loans into one payment, making it easier to manage.

👉 Remember to check how changing lenders impacts your student loan protections and potential future forgiveness.

Step 8: Begin to Look at Long-Term Planning for Financial Stability

The end of SAVE affects your finances both now and in the future. Getting ready ahead of time can make things easier.

1. Evaluate your monthly budget. Decide how you’ll manage higher payments.
2. Even if your new plan isn’t set yet, try to save a little extra. This way, you’ll be ready if your payments go up.
3. Cutting back on nonessential spending or putting aside small amounts for loan payments can make the change easier.
4. If possible, build up emergency savings by spending less than you earn. If you have some money set aside, it’s easier to handle unexpected costs, such as medical bills or car repairs. Without savings, you might miss loan payments and hurt your credit score.
5. Don’t overlook the importance of credit health. On-time payments account for the largest share of your credit score. Even if your payments rise, keeping them current protects access to future loans, housing, and even job opportunities.

While the end of SAVE may feel like a setback, it doesn’t have to put your financial future at risk. By taking proactive steps now, such as reviewing your options, planning ahead, and utilizing existing programs, you can stay in control of your loans, credit, and peace of mind.