Servicers Order 6.9 Million Borrowers Off SAVE Within 90 Days After Court Ruling
Updated
Updated · CNBC · Jul 6
Servicers Order 6.9 Million Borrowers Off SAVE Within 90 Days After Court Ruling
3 articles · Updated · CNBC · Jul 6
Summary
6.9 million student loan borrowers still in SAVE as of March are now being told by servicers to switch plans within 90 days of receiving notice, with the earliest deadline set for Sept. 29.
A federal appeals court earlier this year ordered the Biden-era SAVE plan terminated, and borrowers who miss their transition window will be moved automatically into the Standard or new Tiered Standard plan.
Nelnet alone is notifying nearly 3 million borrowers in waves from July 2026 through March 2027, underscoring that there is no single nationwide exit date even though new repayment rules took effect July 1.
RAP, launched this month, sets payments at 1% to 10% of earnings with a $10 minimum and forgiveness after 30 years, while existing borrowers can still use IBR and, temporarily, PAYE or ICR.
Borrowers who fail to resume payments after leaving SAVE risk delinquency, default after 270 days, and eventually wage, tax-refund or Social Security garnishment, though the Trump administration has not said when collections will restart.