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Many federal student loan borrowers could see their monthly bills double or even triple in the coming weeks if they don't exit a now-defunct affordable repayment plan. Earlier this year, the Trump administration alerted borrowers that they'd have roughly 90 days to transition from the Saving on a Valuable Education, or SAVE, plan to another program. That period began July 1 for some SAVE borrowers, meaning their deadline is just days away, on Sept. 29. Servicers have been notifying their borrowers in waves, so many borrowers have more time. The Biden administration-era income-driven repayment plan SAVE offered very low monthly payments to many loan holders but was ultimately overturned by Republican-led legal challenges and legislation. Many SAVE enrollees haven't had to make a payment in over two years, as lawsuits against the plan unfolded. Meanwhile, their debts have swelled with interest, and their progress in loan forgiveness programs has stalled. More than 6.9 million borrowers were still in SAVE as of March, with an average debt of close to $55,000, according to an analysis by higher education expert Mark Kantrowitz. Borrowers have been slow to leave the plan: around 7.7 million were in the program in July 2025. Many of these borrowers may be taking an "ostrich approach," Kantrowitz said. "Hoping that the problem will go away if you ignore it," he said. "Or, they just have very tight money and time, so figuring it out is a challenge." Here's what the remaining SAVE enrollees need to know about what comes next. Deadline to exit SAVE varies across borrowers Federal student loan servicers are staggering their notices to borrowers regarding the 90-day window to exit the SAVE plan. Because of these rolling timelines, borrowers should check their loan servicer accounts immediately to confirm their deadlines. The earliest date borrowers must exit the program is Sept. 29, according to a Department of Education court filing. However, the department noted that most borrowers will receive additional time. An FAQ on Nelnet's website notes that the company will continue issuing notifications through the end of the year. Meanwhile, the Missouri Higher Education Loan Authority, or Mohela, announced that borrowers can expect their alerts into October. Most borrowers should receive their notices by email, but some may get a letter in the mail, said Michele Zampini, associate vice president of federal policy and advocacy at The Institute for College Access & Success, or TICAS. To avoid missing their notice, borrowers should make sure their contact information is current with their servicer and on their studentaid.gov account, Zampini said. To apply for a new income-driven repayment plan, borrowers can log into studentaid.gov or their loan servicer's website and fill out the application. Borrowers can opt in to allow the department to get their income information directly from the IRS for faster application processing. Expect delays when submitting an application for a new repayment plan. The Education Department is working through a backlog of income-driven repayment plan applications, with more than 530,000 requests pending as of the end of April, the department reported in a May court filing. Doing nothing may leave you with huge bill Borrowers who do not select another repayment plan within 90 days of being notified will be placed in either the Standard Repayment Plan, or the new Tiered Standard Plan, which rolled out on July 1. While the SAVE plan calculated payments based on 5% of a borrower's discretionary income, the standard plans divide borrowers' debts into fixed payments over a set period. "Payments for some borrowers could double or triple," Kantrowitz said. Payments for some borrowers could double or triple.Mark Kantrowitz Borrowers who enroll in one of the Education Department's other income-driven repayment plans can secure lower monthly payments than they would under the standard options. For example, a new IDR plan launched in July — the Repayment Assistance Plan, or RAP — caps monthly payments between 1% and 10% of a borrower's earnings and offers loan forgiveness after 30 years. The plan also introduces perks unavailable on the standard plans, including a $50 monthly discount for each qualifying dependent. According to an analysis provided to CNBC by student loan advisory platform Summer, a two-person household earning just over $50,000, with $60,000 in student debt at a 6.8% interest rate, would owe $690 per month under the 10-year Standard Repayment Plan. Under RAP, that payment drops to just $158. "My advice is to calculate your payment on the next-best income-driven plan now, even if you're not switching yet, and start budgeting for that number today," said Rich Williams, chief customer officer at Summer. "It's better to be financially prepared than surprised by a much higher payment," Williams said.
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