NATIONWIDE – STATE ATTORNEY GENERAL Letitia James is warning New Yorkers with federal student loans about the termination of the Saving on a Valuable Education (SAVE) plan.
This plan is an affordable, income-driven repayment plan, implemented in 2023. In 2024, a court ordered the U.S. Department of Education to terminate the program and place SAVE borrowers into mandatory forbearance. The Trump administration announced a plan to end SAVE in December 2025.
On July 1, SAVE borrowers began receiving notices about their forbearance end dates and choosing new plans. Borrowers will then have 90 days to select a new repayment plan before being automatically enrolled in another plan, most likely the Standard Plan, James’ office said. Since this plan does not take income level into account, monthly payments are often higher.
Borrowers whose most recent loan was disbursed or consolidated before July 1, 2026 have the option for several different repayment assistance programs, but may have to pick new plans again by July 1, 2028. Other borrowers will have to choose between the new Repayment Assistance Plan and the Standard Plan.
For free advice, contact the Education Debt Consumer Assistance Program at 888-614-5004 or [email protected]. More information is available online from EDCAP. and in The Office of the Attorney General’s Student Lending guide.
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