ED Announces Next Steps for SAVE Plan
Published April 06, 2026
By AACOM Government Relations
Federal Policy Financial Aid Higher Education OME Advocate
- On March 27, 2026, ED announced guidance to student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan directing them to exit the plan and enter a new one.
- ED came to a proposed joint settlement agreement with the State of Missouri that ended the SAVE plan in December 2025.
- The guidance details upcoming changes to student loan repayment options and information on how borrowers can enroll in a new, legal plan.
- Beginning July 1, 2026, loan servicers will begin issuing formal notices to borrowers. Once contacted, borrowers have at least 90 days to select a new repayment plan. If no action is taken within that window, borrowers will be automatically placed into a standard repayment plan or a new tiered option.