Student loan borrowers face deadline to leave SAVE: What’s next?

The Education Department is requiring millions of borrowers to exit the SAVE repayment plan by the end of August following a court ruling that terminated the program this month. SAVE, created during the Biden administration, had enrolled more than 7.5 million borrowers seeking lower monthly payments on federal student loans. Borrowers remaining in the plan after the deadline will be automatically transferred to another repayment option, potentially affecting their monthly payment amounts and loan terms. The department has not yet specified which repayment plan will serve as the default for those who don't act, creating uncertainty for borrowers already navigating significant changes to federal loan policy under the Trump administration. This deadline represents another major shift in student loan management after years of payment freezes and program changes.