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The SAVE plan is ending on July 1, 2026, and if you were in it, you need to choose a new repayment plan within about 90 days of your servicer’s notice. Your loans are not going anywhere and you are not in default. But the interest-free pause that came with SAVE is ending, payments are restarting, and the plan you pick next determines what you owe each month.
What happens to my payments now that SAVE is ending?
Your payments restart under a new plan. A federal court ruled SAVE unlawful in March 2026, and the Department of Education is moving the roughly 7 million borrowers still in SAVE onto legal repayment plans, according to the U.S. Department of Education. Starting July 1, 2026, your servicer sends a notice giving you about 90 days to enroll in a new plan.
Your three main choices are the new Repayment Assistance Plan (RAP), Income-Based Repayment (IBR), or the new Tiered Standard Plan. If you do not choose, your servicer auto-enrolls you in the Standard or Tiered Standard Plan.
Key Takeaways
- SAVE ends July 1, 2026. The interest-free forbearance ends and payments resume.
- You have ~90 days from your servicer’s notice to pick a plan before auto-enrollment.
- If you had a $0 payment under SAVE, expect a payment under the new plans. RAP’s minimum is $10 a month.
- Your options: RAP and IBR are income-driven; the Tiered Standard Plan is fixed-term and not income-driven.
- Do not ignore the notice. Choosing yourself usually beats the auto-enrolled plan.
I had a $0 payment under SAVE. What will I pay now?
Probably more than $0, but for many low earners it is a small number. Take a single borrower earning $22,000 with no dependents. Under SAVE, that borrower may have paid $0. Under RAP, the payment is 2% of income, which works out to about $37 a month. It is a real change, and for a lot of people it is the hardest part of this transition: a payment that used to be nothing is now a line in the monthly budget.
RAP also protects the lowest earners. If your adjusted gross income (AGI, your income after certain deductions) is $10,000 or less, your payment is the $10 monthly minimum. A parent earning $12,000 with one dependent also lands at the $10 floor, because the $50-per-dependent reduction pushes the math below the minimum.
You can estimate your own RAP payment here:
RAP Payment Estimator
How is the new RAP payment calculated?
RAP sets your monthly payment at 1% to 10% of your AGI, based on income bands, minus $50 for each dependent, with a $10 minimum. The percentage rises one point for roughly every $10,000 of income, and tops out at 10% above $100,000. Here is how a few situations compare.
| Situation | AGI | Dependents | Rate | Estimated RAP payment |
|---|---|---|---|---|
| Low-income parent (was $0 on SAVE) | $12,000 | 1 | 1% | $10/mo (floor) |
| Single, early career | $22,000 | 0 | 2% | ~$37/mo |
| Single grad, steady job | $45,000 | 0 | 4% | ~$150/mo |
| Married, two kids, one income | $60,000 | 2 | 5% | ~$150/mo |
| Higher earner | $95,000 | 1 | 9% | ~$662/mo |
RAP also waives any unpaid interest each month, so your balance will not grow, and it adds up to $50 toward your principal when your payment does not cover that much. Those features help your balance, not your monthly payment. Remaining debt is forgiven after 360 payments, which is 30 years. Full details are in our guide to the Repayment Assistance Plan.
What are my other options besides RAP?
You have two more paths. Income-Based Repayment (IBR) is the older income-driven plan that stays open and offers forgiveness after 20 or 25 years, which can be a shorter forgiveness timeline than RAP for some borrowers. The Tiered Standard Plan is a fixed-term plan (10 to 25 years based on your balance) with no income test and no forgiveness.
Choosing between them comes down to your income, your dependents, and whether you are going for forgiveness or PSLF. We compare the two income-driven options head to head in RAP vs IBR: which plan to pick in 2026, and explain the fixed-term path in the Tiered Standard Plan explained.
What happens if I do nothing?
If you let the 90-day window pass, your servicer auto-enrolls you in the Standard or Tiered Standard Plan. You stay out of default, which matters, but the automatic plan is not income-driven, will not count toward income-driven forgiveness or PSLF, and may cost more per month than an income-driven plan would. More on this in what happens if you do nothing.
How do I switch out of SAVE?
Log in at studentaid.gov, go to “Manage Loans,” and apply for your new plan. If you consent to let the Department pull your income from the IRS, an income-driven application takes about 10 minutes. We walk through every screen in our step-by-step studentaid.gov guide.
Should I just refinance instead?
For most borrowers, no. Refinancing your federal loans with a private lender permanently gives up RAP, IBR, income-driven forgiveness, and PSLF, so it is the wrong move if you might use any of those. It can make sense only if you have a high, stable income or private loans, will not rely on federal protections, and can lock a lower rate. If that is you, see how to refinance student loans first.
Frequently asked questions
Do I have to pay right away when SAVE ends?
Payments resume as you move to a new plan after your servicer’s notice, which start going out July 1, 2026. You get about 90 days to enroll, so you have time to compare plans, but do not skip the notice.
Will my balance grow if my payment is small?
Not under RAP. RAP covers unpaid interest each month, so your balance will not grow from interest even if your payment is low. This is different from some older plans.
Can I keep a $0 payment?
RAP has a $10 monthly minimum, so a true $0 payment is generally not available under it. The $50-per-dependent reduction can bring lower earners with dependents down to the $10 floor.
Does leaving SAVE hurt my credit?
Switching to a new federal plan does not hurt your credit. Missing payments or defaulting can. Staying enrolled in some plan, even the auto-enrolled one, keeps you in good standing.
Will my SAVE payment history still count?
Qualifying payments you have already made generally continue to count toward forgiveness if you stay in a qualifying plan. Confirm your payment count at studentaid.gov after you switch.
Bottom line: SAVE ending does not put your loans at risk, but it does end your $0-payment window. Find your servicer’s notice, estimate your RAP payment, compare RAP and IBR, and enroll before your 90 days run out so you, not the auto-enrollment rule, decide your monthly bill.
For the full picture of every July 1 change, see our hub on student loan changes in 2026.
A quick note: this guide is here to help you understand your options, not to act as personal financial, legal, or tax advice. Repayment plan rules and dates come from the U.S. Department of Education and can change over time, so it is always worth checking your own numbers and deadlines at studentaid.gov or with your loan servicer before you make a move.
