Federal student loan servicers have begun emailing the more than 7 million borrowers still enrolled in the SAVE plan, telling them they have 90 days to select a new repayment plan — or be moved off automatically.
The College Investor reviewed a notice sent by Edfinancial on July 1. The subject line: "SAVE Plan Update: You Have 90 Days to Select a New Repayment Plan." The notices are arriving by email, and each one starts that borrower's individual 90-day clock on the date it's sent.
Borrowers should check their online portal message inboxes if they've signed up for online paperless statements, as that's where the notices will arrive.
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Driving The News
The Department of Education announced in March that servicers would begin issuing SAVE exit notices on July 1, after a court-approved settlement with Missouri officially ended the SAVE plan.
As Under Secretary Nicholas Kent told The College Investor, the notices are going out in tranches rather than all at once. Nelnet updated their FAQ today to highlight that borrowers will receive notices between July 2026 and March 2027.
That staggered rollout matches the timeline we've been tracking: no borrower will be required to leave SAVE before September 29, 2026 (the end of the first 90 day window), and borrowers notified in ongoing waves.
Why It Matters
Borrowers who don't submit a repayment plan application within their 90-day window will be automatically placed on the Standard Repayment Plan — or the new Tiered Standard Plan, which launched July 1.
For borrowers coming out of the SAVE forbearance, where many owed $0, an auto-assigned standard payment could be a budget shock. Borrowers who want payments based on income must apply for an income-driven repayment (IDR) plan — it won't happen automatically.
What The Notices Say
Beyond the 90-day deadline, the notice highlights three things:
- IRS consent speeds up applications. Giving the Department consent to pull federal tax information directly from the IRS processes IDR applications faster and allows automatic recertification.
- A new Auto Pay discount. Starting July 1, 2026, borrowers with Direct Loans disbursed on or after July 1, 2012 who enroll in Auto Pay by September 30, 2026 get a 1% interest rate reduction through June 30, 2028. After that, it reverts to the standard 0.25%.
- A scam warning. You never have to pay a fee for help with your federal student loans.
Here's The Full Copy Of The Notice
SAVE Plan Update: You Have 90 Days to Select a New Repayment Plan
Dear [Borrower Name],
A recent legal settlement ended the Saving on a Valuable Education (SAVE) Plan, and it is no longer available to borrowers. As a result of the settlement, Edfinancial was directed by the U.S. Department of Education (ED) to move all borrowers out of the SAVE Plan. You must now select a new repayment plan. If you're currently enrolled in the SAVE Plan but don't submit a new application for a different repayment plan within 90 days, you will be placed on the Standard Repayment Plan. If you have a new loan in repayment on or after July 1, 2026, we will place you on the Tiered Standard Plan.
Visit StudentAid.gov/repayment-calculator to estimate monthly payments, determine your eligibility, and choose the repayment plan that best meets your needs and goals.
You can find more information about the settlement at StudentAid.gov/courtactions.
Apply Faster by Sharing Your Federal Tax Information
If you have eligible loans, applying for a new income-driven repayment (IDR) plan is quick and easy if you provide consent for ED to obtain your federal tax information directly from the IRS. This allows ED to process your application faster and eliminates the time-consuming work of manually uploading your income information.
By providing consent for ED to access your federal tax information, ED can automatically recertify your IDR plan.
Visit StudentAid.gov/idr to begin your application.
Lower Your Interest Rate on Auto Pay
If you're not already on Auto Pay, sign up now to lower your interest rate on eligible federal student loans. Starting July 1, 2026, when you sign up for Auto Pay, the interest rate will be reduced by 1%. This interest rate reduction means you'll accrue less interest and pay off your loans faster.
To get this benefit, you must
- have Direct Loans disbursed on or after July 1, 2012,
- enroll in Auto Pay by 11:59 p.m. Eastern time on Sept. 30, 2026, and
- remain on Auto Pay and stay in active repayment on your federal student loans.
After June 30, 2028, your interest rate discount will automatically revert to 0.25%, the standard Auto Pay interest rate reduction.
Please don't hesitate to contact us if you have questions or concerns. Thank you and have a wonderful day!
Sincerely,
Customer CareEdfinancial Services
Options For Borrowers Moving Forward
Borrowers leaving SAVE can choose the new Repayment Assistance Plan (RAP), which bases payments on income and family size and prevents unpaid interest from growing the balance, Income-Based Repayment (IBR), or the Standard or Tiered Standard plans, which carry fixed terms of 10 to 25 years based on loan balance.
Run your numbers with a student loan calculator or the Loan Simulator at StudentAid.gov before your window closes.
A pending lawsuit seeking to block the transition has a hearing the week of July 13, but earlier borrower-side challenges haven't slowed the SAVE wind-down. Expect the notices to keep going out on schedule through August 15.
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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.