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After the Trump administration ended the SAVE repayment plan in March, about 7.5 million federal borrowers must switch to another plan, with 90-day notices sent from July and the first deadlines arriving on September 29. Borrowers who do not choose a new plan after the final notice will be automatically enrolled in a fixed plan, which could significantly raise their monthly payments. The two new options are the income-based Repayment Assistance Plan (RAP), requiring at least $10 a month, and the Tiered Standard Plan. Expert Sonia Lewis advises checking loan notices in the Federal Student Aid account, and notes options including income-driven plans, deferment or forbearance, and loan rehabilitation after nine qualifying payments within 10 months. The article also notes that over 9 million federal borrowers were already in default in the first three months of 2026.
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