Federal SAVE Student Loan Program Discontinued; Borrowers Must Select New Plan

The federal Saving on a Valuable Education (SAVE) student loan repayment plan has been terminated, with approximately 7 million borrowers now being contacted by loan servicers. Affected individuals have a 90-day window to choose between the new Repayment Assistance Plan (RAP) or a Tiered Standard repayment plan. This change, enacted under the 'One Big Beautiful Bill Act,' also introduces new federal borrowing limits for graduate students and Parent PLUS loans.