More than 7 million Americans enrolled in the federal SAVE repayment plan will soon need to choose a new student loan repayment option. You may be one of them.

If your loans are currently in SAVE forbearance, you do not need to take action today. But over the coming months, your loan servicer will send you an important notice. When that notice arrives, you’ll have 90 days to choose a new repayment plan.

The repayment plan you choose could affect your monthly payment and, for some borrowers, eligibility for loan forgiveness programs. Understanding what happens next can help you make an informed decision.

Here’s What Happens Next

Every borrower in SAVE forbearance can expect the same process:

  • Your loan servicer will send you a transition notice.
  • Your 90-day deadline begins when you receive that notice.
  • During those 90 days, you’ll choose a new repayment plan.
  • If you do not choose a plan before your deadline, your loans will automatically be placed in the Standard Repayment Plan.

Don’t ignore the notice. It contains important information about your repayment options and the deadline to make your choice.

Learn About Your Repayment Options

You’ll have several repayment plans to choose from. Some plans base your monthly payment on your income, while others do not. The right choice depends on your financial situation and long-term goals.

Learn about repayment plans and options on how to choose.

About the New RAP Plan

One of the repayment options you may see is the Repayment Assistance Plan (RAP). Because RAP is new, many borrowers are still learning how it compares with other repayment plans.

Before choosing RAP, keep these points in mind:

  • If you consolidate your loans, RAP may become your only income-driven repayment option.
  • RAP may not provide the lowest monthly payment for every borrower.
  • Depending on your financial situation, another repayment plan may be a better fit.
  • Because SAVE is ending while RAP is being introduced, many borrowers are finding it difficult to compare their options.

Before making a decision, take time to understand how each repayment plan could affect your monthly payment and your long-term financial goals.

YOUR SITUATION

If You’re Currently in SAVE Forbearance

Continue checking your email, mail, and your loan servicer’s website for updates. You do not need to make changes until 90 days after your transition notice arrives.

If You Recently Graduated

Recent graduates may have additional decisions to make, including whether to take advantage of the 6-momth grace-period or complete an immediate consolidation. Because consolidation means you will lose access to several income-driven repayment plan options, learn how consolidation could affect your repayment options and monthly payment amount.

YOUTUBE: Dr. Tisa Silver Canady offers consolidation advice for graduates and other borrowers.

If You’re Working Toward Public Service Loan Forgiveness

If you’re pursuing Public Service Loan Forgiveness (PSLF) it requires that you be in an in-come-driven repayment plan. Be sure you understand how your next repayment plan could affect your progress towards PSLF.

More Loan Forgiveness and Relief Program Guidance

Thinking About Consolidating Your Loans?

Loan consolidation may not be the right choice for most borrowers. Recent changes in the law mean, that after July 1, consolidations will reduce your repayment options to RAP and the Standard Tiered plans. Your access to IBR, ICR, and PAYE IDR plans will terminate. So, before consolidating, make sure you understand both the benefits and the tradeoffs.

Additional Consolidation Guidance can be Found Here.

Start With One Simple Step: Know Your Loans

Student loan rules can be confusing, but you don’t need to become an expert overnight. Start with these simple steps:

Know Your Loans Checklist

  1. Log in to your Federal Student Aid account and review all of your federal student loans.
  2. Confirm what type of federal loans you have.
  3. Find out who your loan servicer is and make sure your contact information is up to date.
  4. Review your current repayment plan.
  5. Watch for emails, letters, or messages from your loan servicer.
  6. If you’re considering loan consolidation or changing repayment plans, learn how those decisions could affect your options before taking action.
  7. Visit the Student Loan Hub for updates, guidance, and trusted resources.

Need Help?

Student loan rules change, and you don’t have to figure them out alone.

The One Philly Student Loan Hub is here to help you understand your options with clear, reliable information and resources.