Federal Student Loan System Changes Include End of SAVE Plan and New Options

The federal student loan system is undergoing significant changes, including the court-ordered termination of the SAVE Plan in March 2026. New repayment options, the Repayment Assistance Plan (RAP) and Tiered Standard Plan, are now effective July 1, 2026. These updates require former SAVE Plan borrowers to choose new options and introduce changes to Graduate and Parent PLUS loans, alongside an increased auto-pay interest rate reduction.