U.S. Education Department Guides Borrowers Out of SAVE Plan

The U.S. Department of Education has begun issuing instructions to approximately 7.5 million student loan borrowers, directing them to transition out of the 'Saving on a Valuable Education' (SAVE) Plan. This action follows a recent court order that deemed the plan unlawful, leading to its termination. Borrowers will receive official notices from their loan servicers starting July 1, 2026, and will be given at least 90 days to select an alternative federal repayment option, including upcoming plans like the Repayment Assistance Plan (RAP).