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If you do nothing after the SAVE plan ends, your loan servicer will auto-enroll you in the Standard Repayment Plan or the new Tiered Standard Plan once your roughly 90-day window closes. That keeps you out of default, which is the good news. The catch is that the automatic plan is not income-driven, may cost more per month than you would choose, and will not count toward income-driven forgiveness or Public Service Loan Forgiveness (PSLF).
What happens if I do nothing when SAVE ends?
You get placed into a fixed-term plan automatically. Starting July 1, 2026, servicers send notices to the roughly 7 million borrowers in SAVE, giving each about 90 days to choose a new plan. Borrowers who do not respond are auto-enrolled into either the Standard or Tiered Standard Plan, according to the U.S. Department of Education.
Key Takeaways
- You will not be dropped into default for missing the window. You get auto-enrolled in a plan.
- The default plan is fixed-term, not income-driven, so the payment is not based on your income.
- It does not count toward PSLF or income-driven forgiveness.
- It may cost more per month than RAP or IBR would for a lower earner.
- You can still switch after auto-enrollment, but choosing first is better.
Which plan will I be auto-enrolled in?
You will land in the Standard Repayment Plan or the new Tiered Standard Plan, both of which are fixed-term and not tied to income. The Tiered Standard Plan sets your payoff term from 10 to 25 years based on your balance. Neither plan recertifies your income or offers forgiveness, so the payment is whatever it takes to clear your balance over the term. We break the fixed-term option down in the Tiered Standard Plan explained.
Is auto-enrollment bad?
It is not a disaster, but it is rarely your best outcome. The upside is real: you stay in repayment and out of default, which protects your credit and avoids collection consequences. The downside is that a fixed-term plan can carry a higher monthly payment than an income-driven plan, and it gives you no credit toward income-driven forgiveness or PSLF.
For a lower earner who had a small or $0 payment under SAVE, being auto-enrolled in a fixed-term plan can mean a noticeably higher bill than RAP would set. That is the main reason to choose actively rather than let the clock run out.
What do I lose by not choosing?
You mainly lose income protection and forgiveness progress. An income-driven plan like RAP or IBR ties your payment to your income and moves you toward forgiveness; the auto-enrolled fixed-term plan does neither. If you work in public service and are counting on PSLF, an auto-enrolled fixed-term plan will not earn qualifying payments, which can quietly cost you months of progress. See PSLF in 2026 if that applies to you.
How do I avoid being auto-enrolled?
Choose a plan yourself before your 90-day window closes. Log in at studentaid.gov, review your options, and apply for the plan that fits, whether that is RAP, IBR, or a fixed-term plan you actually want. The income-driven application takes about 10 minutes, especially if you let the Department pull your income from the IRS. Our step-by-step walkthrough covers each screen.
If you are not sure which plan is cheapest for you, compare the two income-driven options in RAP vs IBR and estimate your RAP payment in our RAP guide.
What if I already missed the window?
You can still switch plans after being auto-enrolled. If you were placed in a fixed-term plan and want income-driven repayment or PSLF credit, apply for RAP or IBR at studentaid.gov. Acting sooner is better, since the months you spend in a non-qualifying plan generally do not count toward forgiveness. If repayment feels out of reach, read about avoiding student loan default in 2026 before you fall behind.
Frequently asked questions
Will I go into default if I ignore the notice?
Not immediately. You are auto-enrolled in a repayment plan rather than dropped into default. Default happens after missed payments, so staying in any plan and paying keeps you in good standing.
How long is the window to choose?
About 90 days from your servicer’s notice, with notices beginning July 1, 2026. The exact date is in the notice your servicer sends, so watch your mail and your studentaid.gov account.
Can I change plans after auto-enrollment?
Yes. You can apply to switch to RAP, IBR, or another plan at studentaid.gov. Keep in mind that time spent in a non-income-driven plan generally does not count toward income-driven forgiveness or PSLF.
Is the auto-enrolled plan ever the right choice?
Sometimes. If you have a comfortable income, are not seeking forgiveness, and want a fixed payoff date, a fixed-term plan can suit you. The issue is only that it is automatic, not chosen, so confirm it actually fits.
How do I know which plan I was placed in?
Check your studentaid.gov account or contact your servicer. Your plan, payment, and term are listed there, and you can apply to change them if needed.
Bottom line: doing nothing will not put you in default, but it hands the decision to an automatic rule that may cost you a higher payment and zero forgiveness progress. Spend ten minutes at studentaid.gov to choose your own plan before the 90-day window closes.
For the full set of July 1 changes, start at 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.
