U.S. Department of Education advises borrowers to leave SAVE plan

April 9, 2026 - 11:29

The U.S. Department of Education has issued new guidance, notifying borrowers currently enrolled in the Saving on a Valuable Education (SAVE) income-driven repayment plan that the program is concluding. Officials are advising these individuals to prepare to exit the initiative.

Launched under the Biden administration, the SAVE plan calculates monthly student loan payments based on a borrower's income and family size, often resulting in lower payments than standard plans. The program also included a provision to forgive remaining balances after a certain number of years in repayment.

The recent announcement signals an end to this specific iteration of the repayment program. The Department's guidance directs affected borrowers to take steps to select a new repayment plan to avoid potential disruption. Remaining in the SAVE plan after its termination could lead to borrowers being automatically placed into a different plan, which may not offer the same terms or payment calculations.

Financial aid experts recommend that borrowers review all available income-driven repayment options to find a suitable alternative. Proactively selecting a new plan ensures borrowers maintain control over their monthly payment amounts and long-term forgiveness timeline. The Department is expected to provide further instructions and deadlines in the coming weeks as the transition process begins.