Federal Student Aid Ends SAVE Repayment Plan, Millions of Borrowers Must Choose New Plans

Following a court-approved settlement, the SAVE Plan for federal student loans has ended, requiring over 7.5 million borrowers to select a new repayment plan. Loan servicers began sending transition notices on July 1, 2026, and borrowers have 90 days from their notice, plus a final 30-day period, to choose a new plan before automatic reassignment, which could lead to higher monthly payments. Outstanding federal student loan balances reached $1.66 trillion in Q3 2026.