Key Points
- Many borrowers are navigating whether to leave the SAVE plan, or whether they should remain in forbearance.
- Public Service Loan Forgiveness (PSLF) eligible borrowers and very low-income borrowers may be better served by moving to Income-Based Repayment (IBR) now.
- The Repayment Assistance Plan (RAP), set to launch in 2026, will offer a third choice for borrowers waiting.
For months, federal student loan borrowers enrolled in the SAVE plan have faced a decision: should I leave SAVE now, or should I wait out the forbearance longer?
The Department of Education, of course, has been very forceful in their messaging encouraging borrowers in SAVE to change repayment plans now. On the other hand, the One Big Beautiful Bill Act (OBBBA) gave a more measured timeline - possibly until 2028 to make the switch. Furthermore, the OBBBA implemented a new repayment plan called the Repayment Assistance Plan (RAP), but that doesn't go live until 2026.
Nelnet, one of the major loan servicers, has even started moving borrower's SAVE forbearance dates out until 2028.
The uncertainty has left many borrowers asking the same question: should I leave SAVE now, or wait to see what happens? For most, the choice depends on financial circumstances, forgiveness timelines, and long-term repayment goals. But it would be rare for any borrower to want to stick around until 2028. Most should have a clear path no later than mid-2026.
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@thecollegeinvestor Replying to @Mogirlygirl ✌️ Shouls you stay in the SAVE plan until 2028? Probably not, and here’s why. #studentloans #studentloanforgiveness #studentloandebt #saveplan ♬ original sound The College Investor
The Repayment Plan Options To Leave SAVE
Borrowers who choose to change repayment plans out of SAVE currently have three main repayment paths:
1. Standard Repayment Plans
These include Standard, Extended, or Graduated repayment. Standard repayment is straightforward: 10 years of fixed monthly payments until the debt is gone (this could be longer if you consolidated).
Extended and Graduated allow for longer terms or smaller payments early on.
All three of these plans full repay the loan during the loan term.
2. Income-Based Repayment (IBR)
IBR remains a viable option, especially for borrowers with modest incomes. Post-2014 borrowers pay 10% of discretionary income, while pre-2014 borrowers pay 15%.
Importantly, IBR qualifies for PSLF, making it attractive to public service workers.
For those with low incomes, monthly payments can remain at $0, while still counting toward forgiveness. For borrowers with low incomes on SAVE, this could be a compelling option to resume "qualifying payments" while also keeping a low payment.
It's also important to note that switching now would use your 2024 tax return (assuming you filed one). If your income has increased in 2025, this could be a good time to change to ride out a year of lower payments before they rise based on your current income.
3. Repayment Assistance Plan (RAP)
Scheduled for 2026, RAP is going to be the newest repayment plan and sets your monthly payment at $10 up to 10% of your Adjusted Gross Income (AGI).
The RAP plan may be a more compelling option for borrowers versus IBR - especially for lower or middle income borrowers.
You can use our free Repayment Assistance Plan (RAP) calculator to understand what your monthly payment would be.
If RAP does have a significantly lower payment, it could be worthwhile to remain in the SAVE forbearance and simply switch to RAP directly when it's live next year.
Who Should Leave Now?
Some groups benefit from leaving SAVE immediately:
- PSLF Borrowers: Public service employees working toward PSLF need qualifying payments counted. Unless RAP is a compelling lower payment, borrowers going for PSLF are best served resuming payments again.
- Low-Income Borrowers: Those eligible for $0 monthly payments under IBR have nothing to lose by switching now, since they preserve PSLF eligibility or forgiveness timelines.
- Borrowers Near Forgiveness: If only a few months remain for PSLF, switching to PSLF now versus waiting for PSLF buyback is likely the quicker move. Plus, the math is likely going to be the same!
Why You Might Wait
There are cases where waiting still makes sense.
If RAP is the lower payment option for you, waiting a few more months to move into RAP directly makes sense.
At that point, staying in SAVE may only make sense for those in extreme financial distress. Once RAP is live, we know all the repayment options. We also know all the pathways to loan forgiveness. Waiting around in forbearance serves no purpose.
If you can't afford either IBR or RAP payments, now is the time to work on your budget and plan accordingly, because you will have to resume payment eventually (or end up in student loan default - which is magnitudes worse).
What Happens Next
The Department of Education should be rolling out the new RAP plan next summer. When that happens, all options will be available to borrowers to clearly make a choice.
Nelnet’s latest forberance moves lasting until 2028 should not be interpreted as a guarantee. Furthermore, it really doesn't make financial sense to wait that long. If you can't afford your payments under IBR or RAP, make the moves you need now.
For most borrowers on SAVE, you should be switching to a new repayment plan now, or at least planning to when RAP goes live next year. There really should not be anyone "riding it out" intentionally.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.