The short answer: The SAVE plan ended in March 2026, and borrowers must pick a new repayment plan or be moved to the Standard Plan. If you need lower payments or forgiveness, choose an income-driven plan like RAP or IBR. If your income has grown, the Standard Plan may already cost less, and refinancing could lower your rate further.
If a letter or email from your loan servicer told you to leave SAVE, you are far from alone. More than 7 million borrowers were enrolled when the plan ended, and servicers are now sending final notices to everyone who hasn’t picked a new plan yet.
The good news: this is a decision, not an emergency. Here is what is happening, what each option means, and how to tell which one fits your life right now.
What happened to the SAVE plan
A court order ended the SAVE plan in March 2026. Starting July 1, servicers began giving SAVE borrowers 90 days to choose another plan. Borrowers who missed that window are now getting a final 30-day notice, and for many, the first of those deadlines falls at the end of October.
If you don’t choose by your final deadline, your servicer will place you in a plan for you:
- The Standard Repayment Plan if all of your loans were disbursed before July 1, 2026.
- The Tiered Standard Plan if you have a loan disbursed on or after July 1, 2026 that has entered repayment.
Your servicer has to tell you your new payment at least 21 days before it is due. If you’re on autopay, the new amount will be pulled automatically, so check it.
Your options after SAVE, side by side
| Option | How the payment is set | Best for | Watch out for |
|---|---|---|---|
| Repayment Assistance Plan (RAP) | 1% to 10% of your income, minimum $10, minus $50 per dependent | Lower or uncertain income, PSLF | Forgiveness takes 30 years outside PSLF |
| Income-Based Repayment (IBR) | A share of your discretionary income, capped at the Standard payment | Borrowers who want a payment cap tied to Standard | Stays on your income each year |
| PAYE or ICR | Income-based | Borrowers already eligible who want a legacy plan for now | Both end for current borrowers on July 1, 2028 |
| Standard Plan | Fixed payment, paid off in 10 years for most borrowers | Stable, growing income | Highest monthly payment of the federal options |
| Refinancing (private) | New fixed or variable rate from a private lender | Strong credit, steady income, no need for federal programs | You give up federal protections for refinanced loans |
RAP has two features worth knowing. If your payment doesn’t cover the month’s interest, the unpaid interest is waived as long as you pay on time. And if your payment reduces your principal by less than $50, the government adds up to $50 toward principal. Your balance won’t grow while you make full payments.
For more on how the July 1 changes reshaped these plans, see what the July 1 changes mean if you owe $100K or more.
The surprising number: most SAVE borrowers may pay less on Standard
A JPMorgan Chase Institute study released in October 2026 found that only 37% of SAVE borrowers could lower their payments by moving to another income-driven plan. For the other 63%, the 10-year Standard Plan costs the same or less each month.
Why? Many borrowers enrolled in SAVE when their income was lower. A few raises later, an income-based payment can climb past what the Standard Plan would charge. If that sounds like you, an income-driven plan may not be saving you anything.
And that is where refinancing enters the picture. Once the Standard Plan is your baseline, the question becomes simple: could a private lender give you a lower rate than your federal loans carry?
Three questions to find your path
1. Are you working toward Public Service Loan Forgiveness?
If yes, stay federal. Choose RAP or IBR so your payments count toward forgiveness after 10 years of qualifying payments. Refinancing would end your PSLF eligibility for those loans. Our PSLF vs. refinancing guide runs the numbers.
2. Is your income low, uncertain, or about to drop?
If yes, an income-driven plan is your safety net. RAP’s minimum payment is $10, and its interest waiver keeps your balance from growing. Keep that protection while you need it.
3. Is your income steady, with a Standard payment you can afford?
If yes, compare the Standard Plan with refinancing. Refinancing could lower your rate, your total interest, or both. It also means giving up federal protections like income-driven plans, forgiveness, and federal deferment for any loans you refinance. Read what you give up when you refinance federal loans before you decide.
One more thing to factor in: forgiveness under an income-driven plan in 2026 or later is generally treated as taxable federal income. That doesn’t change the math for PSLF, which remains tax-free, but it matters if you were counting on 20 to 30 years of payments ending in forgiveness.
See whether refinancing beats the Standard Plan for you
Checking your rate on Admire takes a few minutes and uses a soft credit check, so it won’t affect your credit score. Compare offers from multiple lenders side by side before you choose a plan.
A worked example: Maya’s three choices
Maya is 29, a product designer earning $95,000, with no dependents. She owes $45,000 in federal loans at an average rate of 6.5%. She enrolled in SAVE in her first job, when she earned much less. Here is how her options compare.
| Option (refinance rate is hypothetical) | Monthly payment | Total interest | Paid off in |
|---|---|---|---|
| RAP (9% of $95,000 AGI) | about $713 | Rises if her income rises | About 6.5 years at this payment |
| Standard Plan (6.5%, 10 years) | $511 | $16,316 | 10 years |
| Refinance (5.25%, 10 years) | $483 | $12,938 | 10 years |
| Refinance (5.25%, 7 years) | $641 | $8,871 | 7 years |
Rates are illustrative only. Your rate depends on your credit, income and the lender.
At her income, RAP would require about $200 more each month than the Standard Plan, and IBR would cap her at the Standard payment anyway. That is the 63% from the study in action. A higher required payment isn’t a penalty, since it pays the loan off faster, but it takes away flexibility she could have on the Standard Plan, where she can always pay extra when she wants to. Between the Standard Plan and refinancing, a lower rate saves her about $3,400 in interest at the same term, or about $7,400 if she can afford the 7-year payment and wants to be debt-free sooner. Either way, she would give up federal protections on any loans she refinances, so the decision comes down to how secure she feels in her job and income.
For a fuller look at how lenders arrive at a rate like that, see how lenders price refinancing.
The middle path: refinance some loans, keep others federal
You don’t have to choose all or nothing. Many borrowers:
- Refinance private loans they already have, since those carry no federal protections to lose.
- Keep federal loans federal on RAP, IBR or the Standard Plan, so the safety net stays in place.
- Refinance only the highest-rate federal loans, such as older graduate loans, while keeping the rest federal.
If you are weighing a federal Direct Consolidation Loan instead, note that it averages your rates rather than lowering them. Our consolidation vs. refinancing guide explains the difference.
What to do this week
- Log in to StudentAid.gov and confirm your loan types, disbursement dates and current plan.
- Find your deadline in your servicer’s notice. If you’re unsure, call your servicer.
- Run the federal Loan Simulator to see your payment under RAP, IBR and the Standard Plan.
- Check your refinance rate if the Standard Plan comes out lowest. It uses a soft credit check, so it won’t hurt your score. Here’s why checking is safe.
- Pick a plan before your deadline, even if you plan to refinance later. Being placed in a plan automatically is the one outcome you don’t control.
The bottom line
The end of SAVE feels like one more thing to worry about, but it is also a good moment to check whether your loans still fit your life. If you need a safety net, an income-driven plan is there for you. If your income has grown, you may already be paying more than you need to, and refinancing could turn that into real savings for a house, a car or whatever comes next. For a quick checklist, see who should refinance in 2026, and who should not, or compare refinancing offers on Admire.
Frequently asked questions
What happens if I don’t choose a new plan after SAVE ends?
If you don’t choose a plan by your servicer’s final deadline, you will be placed in the Standard Repayment Plan, or the Tiered Standard Plan if you have a loan disbursed on or after July 1, 2026 that has entered repayment. Your servicer will tell you the new payment at least 21 days before it is due.
What is the best replacement for the SAVE plan?
It depends on your income and goals. RAP or IBR usually fit borrowers with lower or uncertain income or those pursuing PSLF. Borrowers with steady, higher income may pay less on the Standard Plan, and may save more by refinancing if they don’t need federal programs.
How is the RAP payment calculated?
RAP payments are 1% to 10% of your adjusted gross income, depending on your income level, divided by 12. The payment drops by $50 a month for each dependent, and the minimum is $10. Unpaid interest is waived when you make full, on-time payments.
Can I refinance my student loans instead of picking a new federal plan?
Yes. You can refinance federal loans with a private lender at any time if you qualify. Refinanced loans lose federal protections such as income-driven repayment, PSLF and federal deferment. Until a refinance is complete, you should still choose a federal plan so you aren’t placed in one automatically.
Will refinancing after SAVE hurt my credit?
Checking your rate with a soft credit check does not affect your score. Submitting a full application usually involves a hard inquiry, which can cause a small, temporary dip. Making on-time payments on your new loan helps your credit over time.
Admire is not a lender and does not make credit decisions. All rates and terms are determined by participating lenders and depend on your individual financial situation. Not all consumers will qualify for advertised rates and terms. See our full disclaimers.
