US Secretary of Education Linda McMahon speaks at the Department of Justice headquarters in Washington, DC, on June 11, 2026. McMahon is overseeing a transition process at the Dept. of Education where millions of borrowers with student loans in the SAVE plan are being moved into other repayment programs. (Photo by Oliver Contreras / AFP via Getty Images)
AFP via Getty Images
The Education Department sent out a new wave of notices to thousands of borrowers last week, instructing them to move their student loans into a different repayment plan or the department would force their hand. In the meantime, several student loan servicers contracted by the department have quietly updated their websites to reflect a new, faster timeline for the transition than had been initially communicated to borrowers.
The rapid pace of updates centers on the SAVE plan, an income-driven repayment plan created by the Biden-Harris administration that has been hamstrung by legal challenges for more than two years. After the Education Department and a coalition of GOP-led state challengers entered into a settlement agreement earlier this year to terminate the program, student loan servicers have begun sending out notices to borrowers giving them 90-days to move their student loans into a different income-driven repayment plan. If they don’t, the department will automatically place borrowers into a Standard plan, which might be more expensive and wouldn’t count toward student loan forgiveness in most cases.
But just as loan servicers sent out a second batch of 90-day notices to student loan borrowers last week, they also quietly updated their websites, which now show a much shorter timeframe for pushing borrowers out of the SAVE plan than they did before. Here’s the latest, and what borrowers who have student loans enrolled in SAVE should know.
Second Wave Of 90-Day Notice Sent To Borrowers With Student Loans Enrolled In SAVE Plan
The Education Department has indicated that the 90-day notices forcing borrowers to move their student loans off of the SAVE plan are being sent in waves. The first batch went out on July 1, prompting thousands of borrowers to apply to switch to the new Repayment Assistance Plan, or RAP, within 24 hours. A second wave of notices went out last week.
“A recent legal settlement ended the Saving on a Valuable Education (SAVE) Plan, and it is no longer available to borrowers,” says the latest notice, with virtually identical language to the notices that went out at the beginning of the month. “You must now select a new repayment plan. If you’re currently enrolled in the SAVE Plan but don’t submit a new application for a different repayment plan within 90 days, you will be placed on the Standard Repayment Plan. If you have a new loan in repayment on or after July 1, 2026, we will place you on the Tiered Standard Plan.”
“Just got the dreaded 90 day letter from Nelnet,” said one user on Reddit last week, confirming that the second wave of SAVE plan notices has now begun.
“Well… it happened. I got my 90 day notice to switch plans from SAVE. Just wanted to let everyone know… the notices are on their way,” said another Reddit user.
“Got mine from Edfinancial,” responded another borrower.
Borrowers who don’t apply to move their student loans to a different income-driven repayment plan, like RAP or Income-Based Repayment, will be put into a Standard or Tiered Standard repayment plan after the 90-day period expires, says the department. Standard plan payments may be unaffordable for many people, and won’t count toward student loan forgiveness outside of some limited exceptions (such as payments made under the 10-year Standard repayment plan for PSLF).
New Timeline For Moving Student Loans From SAVE Plan To Other Income-Driven Repayment Plans
Although the Education Department has consistently said the 90-day notices would go out in batches, the department and its contracted student loan servicers have provided conflicting information on the exact timeframe for transitioning borrowers out of the SAVE plan. At least one servicer, Nelnet, had previously indicated on its website that some borrowers wouldn’t receive the 90-day notice until as late as March 2027, potentially allowing their student loans to remain in the SAVE plan forbearance for almost a full additional year.
But as student loan servicers began sending out the second wave of 90-day notices last week, they also quietly updated their websites. The latest publicly available information now suggests that borrowers will have far less time to move their student loans to other income-driven plan than they previously had indicated.
“Once you hear from us by email or mail (based on your communication preference), you must make a switch within 90 days,” says Nelnet’s updated “Frequently Asked Questions” webpage dedicated to the SAVE plan transition. “Nelnet is notifying nearly three million Nelnet borrowers, so we’re reaching out in waves. You’ll receive your notice by the end of 2026.”
Some of the department’s loan servicers suggest borrowers will have even less time.
“Borrowers who have loans in forbearance because they enrolled in the Saving on a Valuable Education (SAVE) Plan must select a new repayment plan after receiving a notice from MOHELA,” said MOHELA, another student loan servicer contracted by the government, on its website. “MOHELA is notifying millions of MOHELA borrowers, so we’re reaching out in waves. You’ll receive your notice between July 2026 and October 2026.”
The Education Department’s website dedicated to the SAVE plan legal developments has not been updated since July 1, and does not provide specific details on the timeline for borrowers to move their student loans out of the SAVE plan. But the new webpage updates by Nelnet and MOHELA suggest that most borrowers will be kicked off the SAVE plan within the next few months.
When Borrowers Should Move Their Student Loans Out Of SAVE Plan
Borrowers are not required to take any action on their student loans until they receive the 90-day notice from their servicer.
“Borrowers are not required to switch plans until a notice is received,” explains MOHELA on its website. “Our notification informs you of the deadline to choose a new plan. Once you hear from us by email or mail (based on your communication preference), you must make a switch within 90 days of the day of the notice.”
That said, some borrowers may want to consider moving their student loans out of the SAVE plan sooner. This includes those who are concerned about interest continuing to accrue on their balance, or borrowers who want to get back on track for student loan forgiveness, such as through PSLF. Borrowers can select Income-Contingent Repayment (or ICR), Income-Based Repayment (or IBR), the Pay As You Earn plan (or PAYE), or the new RAP program, depending on their eligibility. However, borrowers should be aware that in many cases, their monthly payments may be much higher under all other available repayment programs compared to what they had been paying under the SAVE plan. For that reason, some borrowers may want to remain in the forbearance for as long as they reasonably can.
Read the full article here