Federal Student Loan Borrowers Must Choose New Repayment Plans as Biden-Era SAVE Plan Ends

Millions of federal student loan borrowers are urgently selecting new repayment options following the discontinuation of the Biden-era SAVE Plan by the Trump administration. Borrowers on the defunct SAVE Plan must choose a new repayment plan within 90 days of notification or face automatic transfer to an option with the largest increase in monthly payments. The newly introduced Repayment Assistance Plan (RAP), which caps payments at 10% of adjusted gross income, and standard repayment are the only options for loans disbursed after July 1.