Why is the SAVE plan ending?

The SAVE plan was challenged in court and ultimately vacated by federal court rulings. The One Big Beautiful Bill Act (P.L. 119-21) formally replaces SAVE with the new Repayment Assistance Plan (RAP), effective July 1, 2026.

What happens to borrowers currently on SAVE?

Borrowers who were enrolled in SAVE have been placed into an administrative forbearance while the transition occurs. Starting July 1, 2026, they can enroll in RAP or IBR. By July 1, 2028, all borrowers on legacy plans (SAVE, PAYE, ICR) must choose RAP or IBR.

Do my SAVE payments count toward RAP forgiveness?

Payments made under SAVE or other qualifying IDR plans may count toward your overall IDR forgiveness timeline. However, RAP has a 30-year forgiveness period, so your timeline may be longer than under SAVE. Confirm the credit of prior payments with your loan servicer.

Should I choose RAP or IBR after SAVE ends?

It depends on your income, family size, and goals. RAP offers an interest subsidy and $50/month principal match but has a 30-year forgiveness timeline. IBR offers faster forgiveness (20 or 25 years) and allows $0 payments. Use our RAP vs IBR calculator to compare both plans with your specific numbers.

Will I lose my forbearance credit when SAVE ends?

Months spent in administrative forbearance due to SAVE litigation generally do not count as qualifying payments toward IDR forgiveness. However, specific rules may apply depending on when you entered forbearance and future guidance from the Department of Education.

Can I stay on SAVE instead of switching to RAP?

No. SAVE is no longer available for enrollment, and existing SAVE enrollees will need to transition to either RAP or IBR by July 1, 2028. After that date, SAVE will be fully phased out.

What if I do nothing — will I be automatically enrolled in RAP?

No. You will not be automatically enrolled in any plan. If you take no action, you will remain in forbearance or be placed on the standard repayment plan, which could result in much higher monthly payments. You need to proactively choose and enroll in RAP or IBR through your servicer.

I was on PAYE or ICR — am I affected too?

Yes. PAYE and ICR are also being phased out under the new law. Borrowers on these plans must transition to RAP or IBR by July 1, 2028. You can switch voluntarily before that date to take advantage of RAP's interest subsidy and principal match.

Do I need to consolidate my loans before enrolling in RAP?

If you have Direct Loans, no consolidation is needed. If you have older FFEL or Perkins Loans, you must consolidate them into a Direct Consolidation Loan before enrolling in RAP. Use our Eligibility Checker to determine if consolidation is required for your loans.

SAVE Plan Ending: How to Transition to RAP

The SAVE plan has been vacated and is being replaced by RAP. If you were on SAVE or are in administrative forbearance, here's what you need to know and do before the deadline.

What Happened to the SAVE Plan?

The SAVE (Saving on a Valuable Education) plan was introduced in 2023 as a replacement for the REPAYE plan. However, multiple legal challenges led to federal court rulings that vacated the SAVE plan. Millions of borrowers who were enrolled in SAVE were placed into administrative forbearance while the legal situation was resolved.

The One Big Beautiful Bill Act (P.L. 119-21) settled the matter by formally creating the Repayment Assistance Plan (RAP) as the new primary income-driven repayment option. SAVE, along with PAYE and ICR, will be fully phased out by July 1, 2028.

Transition Timeline

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2024 — SAVE Vacated

Federal courts vacated the SAVE plan. Enrolled borrowers were placed into administrative forbearance. No IDR payments were required during this period.

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2025 — RAP Created

The One Big Beautiful Bill Act is signed into law, creating the RAP plan and setting a July 1, 2026 effective date.

July 1, 2026 — RAP Enrollment Opens

Borrowers can begin enrolling in RAP through their federal loan servicer. This is the earliest date you can switch from forbearance to active repayment under RAP.

July 1, 2028 — Mandatory Transition

All borrowers on SAVE, PAYE, or ICR must have transitioned to RAP or IBR. These legacy plans are fully closed. Borrowers who haven't chosen a plan may be placed on standard repayment.

RAP or IBR? A Decision Guide

After SAVE ends, your two main IDR options are RAP and IBR. The right choice depends on your income, family size, and financial goals.

Factor	Choose RAP	Choose IBR
Forgiveness speed	Can wait 30 years	Want 20–25 year forgiveness
Interest concern	Want subsidy (no balance growth)	OK with potential balance growth
Very low income	$10 minimum payment	$0 payments possible
Large family	$50/dependent deduction	Higher FPL exclusion per person
High income	No payment cap (10% of AGI)	Capped at standard payment
PSLF eligible	Both qualify — RAP has extra benefits	Both qualify
Principal reduction	$50/mo government match	No match

Not sure which plan gives you a lower payment?

Compare RAP vs IBR

What You Should Do Now

Don't wait until the last minute. Take these steps to prepare for the transition from SAVE to RAP or IBR.

Check your loan types

Log in to studentaid.gov and review your loan portfolio. Identify whether you have Direct Loans, FFEL Loans, or Perkins Loans. Only Direct Loans are eligible for RAP without consolidation.

Consolidate if necessary

If you have FFEL or Perkins Loans, apply for a Direct Consolidation Loan now. Consolidation can take 30–60 days, so start early to be ready for July 1, 2026 enrollment.

Compare RAP and IBR

Use our RAP vs IBR calculator to see which plan gives you a lower monthly payment. Consider forgiveness timelines, interest subsidies, and whether you qualify for PSLF.

Enroll through your servicer

Starting July 1, 2026, contact your federal loan servicer to enroll in RAP or IBR. You can also apply through studentaid.gov. Do not wait until the 2028 deadline — the sooner you enroll, the sooner your qualifying payments begin counting.

Review your tax filing strategy

If you are married, consider whether filing jointly or separately benefits your student loan payment. RAP uses your AGI, so filing separately can lower your payment if your spouse has a high income. See our married filing separately guide.

Do not ignore this transition. If you take no action, you may be placed on the standard 10-year repayment plan, which could result in monthly payments several times higher than what you would pay under RAP or IBR. Enroll in your chosen plan as soon as possible after July 1, 2026.

Estimate Your New Payment

See what you'll pay under RAP or IBR before you make the switch. Our free calculator runs entirely in your browser.

Try the RAP Calculator

SAVE Plan Ending: How to Transition to RAP

What Happened to the SAVE Plan?

Transition Timeline

2024 — SAVE Vacated

2025 — RAP Created

July 1, 2026 — RAP Enrollment Opens

July 1, 2028 — Mandatory Transition

RAP or IBR? A Decision Guide

What You Should Do Now

Check your loan types

Consolidate if necessary

Compare RAP and IBR

Enroll through your servicer

Review your tax filing strategy

Estimate Your New Payment

Frequently Asked Questions

More RAP Tools & Guides

RAP Calculator

RAP vs IBR Comparison

Eligibility Checker

What Is RAP?

RAP Forgiveness

Consolidation Guide