The SAVE plan was eliminated. Here are your remaining repayment options, how to calculate payments, and what to do now.
If you were enrolled in (or planning to enroll in) the SAVE income-driven repayment plan, you need a new strategy. The SAVE plan — originally introduced in 2023 as a more generous replacement for REPAYE — was blocked by federal courts in 2024, and the One Big Beautiful Bill Act officially eliminated it in 2025. Borrowers who were in SAVE have been moved to other plans, and new enrollment is no longer possible.
Here is what happened, what your options are, and how to move forward.
The SAVE (Saving on a Valuable Education) plan was designed to lower monthly payments for federal student loan borrowers by calculating payments based on a larger income exemption and a lower percentage of discretionary income. It offered payments as low as 5% of discretionary income for undergraduate loans and a 20-year forgiveness timeline.
Republican state attorneys general challenged the plan in court, arguing that the Department of Education overstepped its authority. Federal courts issued injunctions in 2024 that froze all SAVE enrollments and placed existing borrowers in administrative forbearance. The OBBBA then formally repealed the plan as part of the broader spending legislation.
Borrowers who were in SAVE have been transitioned to the Income-Contingent Repayment (ICR) plan by default. If you were in SAVE, check your servicer account — your plan has changed, and your payment amount has likely increased.
Federal student loan borrowers still have several repayment plans available. Here is how each one works:
Fixed monthly payments over 10 years. This plan costs the least in total interest because you pay off the debt fastest. On a $35,000 loan at 5.5%, your monthly payment is $380, and you pay $10,578 in total interest. This is the default plan for all borrowers.
Payments start low and increase every two years over a 10-year term. This works for borrowers whose income is low now but expected to grow. The downside: you pay more total interest than standard repayment because early payments are smaller and interest accrues on a larger balance longer.
Available to borrowers with more than $30,000 in Direct Loans. Stretches payments over 25 years with either fixed or graduated payments. Monthly payments are lower, but you pay significantly more in total interest. On a $60,000 loan at 5.5%, standard repayment costs $651/month over 10 years ($18,082 total interest). Extended repayment costs $369/month over 25 years ($50,741 total interest). You save $282/month but pay $32,659 more overall.
The only income-driven plan still available for new enrollment. Payments are the lesser of 20% of discretionary income or what you would pay on a 12-year fixed plan, adjusted for income. After 25 years of qualifying payments, any remaining balance is forgiven (but the forgiven amount is taxable as income).
ICR is notably less generous than the eliminated SAVE or PAYE plans. A borrower earning $50,000 with $40,000 in loans would pay roughly $350/month under ICR, compared to about $150/month under SAVE.
Use our student loan calculator to estimate your payment under each plan.
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Calculate Student Loan Payments →Here is the good news: PSLF was not affected by the OBBBA. If you work for a qualifying employer (government, 501(c)(3) nonprofit, military) and make 120 qualifying monthly payments under an eligible repayment plan, your remaining federal loan balance is forgiven tax-free.
PSLF works with ICR, so borrowers pursuing public service forgiveness still have a viable path. The key is ensuring your employer qualifies, your loans are Direct Loans (or consolidated into Direct Loans), and you are on an eligible repayment plan.
Since PSLF forgiveness is tax-free (unlike ICR's 25-year forgiveness), it remains one of the best deals in student loan repayment for qualifying borrowers.
Private refinancing is an option if you have good credit (typically 680+), stable income, and do not need federal protections like income-driven repayment, forbearance, or PSLF. Refinancing converts federal loans to private loans permanently — you cannot undo this.
Refinancing makes sense when:
Refinancing does not make sense when:
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Build a Debt Payoff Plan →To compare your options, you need three numbers: your total federal loan balance, your weighted average interest rate, and your adjusted gross income (AGI).
For standard and extended plans, the calculation is straightforward amortization math — our student loan calculator handles this instantly. For ICR, you also need your AGI and family size, since payments are income-based.
A quick comparison for a borrower with $50,000 in loans at 6.0% and $55,000 AGI:
If you were in SAVE, log into your servicer account immediately. Confirm which plan you have been moved to and what your new payment amount is. If the payment is unaffordable, contact your servicer to discuss options — ICR, extended repayment, or forbearance as a last resort.
Run the numbers yourself. Use our student loan calculator to compare plans side by side. Check your full budget with our budget calculator, and explore whether accelerated payoff makes sense for your situation. The worst thing you can do is ignore your loans — interest accrues whether you are paying attention or not.
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