What Replaced SAVE: Federal Student Loan Repayment Plans After 2026
By Muntasir Minhaz • Published Aug 07, 2026 • US Student Loans
A federal court vacated the SAVE plan on March 10, 2026. PAYE and ICR are not eliminated yet, borrowers whose first loan was disbursed before July 1, 2026 can still use or enroll in them until they sunset on July 1, 2028. Borrowers on SAVE get notices starting July 1, 2026, and have 90 days to pick a new plan before being moved automatically.
📩 Servicers began sending transition notices July 1, 2026
You have 90 days from your notice to choose a new plan yourself
If you do nothing, you get placed on the Standard Repayment Plan or the new Tiered Standard Plan
PAYE, ICR, and legacy IBR stay open to pre-July 2026 borrowers until they phase out on July 1, 2028
💵 The Repayment Assistance Plan (RAP) is the new income-driven option for anyone who wants income-based payments
The SAVE Plan No Longer Exists
The SAVE plan is gone. A federal appeals court directed a lower court to vacate the SAVE regulation, and the final judgment vacating the rule landed on March 10, 2026, according to the National Consumer Law Center . Interest on SAVE loans had already resumed months earlier, and now the plan itself is unavailable to new or returning applicants. PAYE and ICR are not eliminated yet. Borrowers whose first federal loan was disbursed before July 1, 2026, and who have not taken out a new loan since, can still use or enroll in PAYE or ICR until those plans sunset on July 1, 2028. Only borrowers whose first loan is disbursed on or after July 1, 2026, are barred from PAYE and ICR and must choose between RAP and the Tiered Standard Plan. Former SAVE borrowers who meet PAYE eligibility rules can switch into PAYE.
The One Big Beautiful Bill Act, the 2025 reconciliation law behind this overhaul, phases out SAVE, PAYE, and ICR as ongoing options and directs the Department of Education to build a simpler system in their place.
Timeline for Moving Off SAVE, PAYE, or ICR
If you were still enrolled in SAVE, PAYE, or ICR, your loan servicer started sending notices on July 1, 2026, explaining how to pick a new plan. You get 90 days from that notice to choose. Borrowers who take no action get placed automatically on the Standard Repayment Plan, or the new Tiered Standard Plan if their first loan was disbursed on or after July 1, 2026. Every borrower on SAVE, PAYE, or ICR needs to move to an eligible plan by July 1, 2028.
What Replaced the Old Income-Driven Plans
Borrowers who still want income-based payments now use the Repayment Assistance Plan (RAP), which calculates your payment from 1% to 10% of your adjusted gross income and forgives any balance left after 360 qualifying payments. If your first federal loan was disbursed before July 1, 2026, and you have not taken out a new loan since, you can also enroll in the legacy Income-Based Repayment (IBR) plan, PAYE, or ICR instead of RAP, and keep access to those plans, plus Standard, Graduated, and Extended, until the July 1, 2028 deadline. The Department of Education describes RAP as the direct replacement for SAVE going forward.
Borrowers with loans disbursed on or after July 1, 2026, have two choices only: RAP, or the new Tiered Standard Plan, which fixes your payment over 10 to 25 years depending on how much you borrowed.
What Happens If You Do Nothing
Doing nothing does not stop the transition. Your servicer moves you to Standard or Tiered Standard automatically once your 90-day window closes, and those plans carry a fixed payment with no income adjustment. If a fixed payment does not fit your budget, apply for RAP or legacy IBR before your window ends.
How to Choose Your Next Plan
Log in to studentaid.gov to see which plans your loans qualify for. Compare your current SAVE-era payment against the RAP estimate and the fixed Standard payment before you decide. If you are working toward Public Service Loan Forgiveness, confirm your new plan still counts as a qualifying plan before you switch.