5 Steps To Prepare for SAVE Plan Repayment in 2026

The future of the Saving on a Valuable Education (SAVE) federal student loan repayment plan has effectively been sealed, and millions of borrowers will need a new strategy.

After attracting more than 7 million participants with the promise of lower student loan payments and a faster path to loan forgiveness than other income-driven repayment options, the SAVE Plan was put on hold as it quickly faced legal challenges from various states. In late 2025, the Department of Education announced a proposed settlement agreement that would end the SAVE Plan for good. But even without the settlement, the plan will be phased out by July 2028 due to the passage of the “One, Big, Beautiful Bill Act.”

If you're a borrower who signed on to the SAVE Plan before the yearslong pause, read on to learn what comes next for your student loans and how to restart payments. 

Current student loan refinance rates

Why many SAVE Plan borrowers haven't made payments in years

If you enrolled in the SAVE Plan, you may not have made payments on your student loans for nearly six years. 

First came the COVID-19 emergency forbearance, which paused federal student loan payments and interest from March 2020 through September 2023. The Biden administration then offered a 12-month grace period, which gave borrowers time to restart payments. 

“It was during this grace period that SAVE launched and also when SAVE was blocked,” explains Robert Farrington, student loan expert and founder of The College Investor. “Borrowers who were moved to the SAVE Plan or enrolled found themselves suddenly back in administrative forbearance due to the ongoing court cases.” 

Interest charges were also temporarily paused, but began accruing again on Aug. 1, 2025. With the SAVE Plan nearly eliminated (pending final approval of the settlement agreement), borrowers are waiting to find out what's next. 

When your student loan payments could restart and what to expect 

The SAVE Plan won't be coming back, but it's still uncertain when you'll have to restart payments. 

“Under the ‘One, Big, Beautiful Bill Act,’ the SAVE Plan (as well as PAYE and ICR) will need to be sunsetted as of July 1, 2028, so that’s technically the latest this forbearance could continue,” says Megan Walter, a senior policy analyst at the National Association of Student Financial Aid Administrators (NASFAA).

However, payments could start even sooner, possibly in 2026. 

“There are indications that things will move relatively quickly when the court approves the pending settlement agreement,” says student loan lawyer Adam Minsky. 

You have a few options to prepare for SAVE Plan repayment: 

• Wait it out: You can continue to ride out the SAVE Plan forbearance to get a break in payments as long as possible. If you don't choose an alternative plan, though, your loan servicer will eventually auto-enroll you in the new Repayment Assistance Plan (RAP), which will roll out in July 2026.  
• Make interest-only payments: Since interest is growing on your student loans, consider paying off the charges so your balance doesn't keep growing while payments are paused. 
• Switch to a new repayment plan: You could enroll in an alternative plan now, such as Income-Based Repayment (or RAP after July 1, 2026). PAYE and ICR are also currently available, but they'll be eliminated by July 2028. 

Steps you can take now to prepare for repayment 

While the timeline is still up in the air, student loan repayment is going to start again at some point in the near future. Here are some ways to prepare for SAVE Plan repayment. 

1. Identify your student loan servicers 

Find out who your loan servicers are by logging in to your Federal Student Aid account. Loan servicer changes are not uncommon, so you may have a different loan servicer now than the one you started with. You'll need an account with each of your loan servicers to make payments. Make sure your loan servicers have your most recent contact information so you don't miss any important communications. 

2. Log in to your accounts and review your student loans 

Along with updating your personal details, check out your student loan details. Review your total balances, interest rates, and payment history so you understand exactly where you stand. Make sure the details in your loan servicers' accounts match what you see in your Federal Student Aid account (and contact your loan servicer if you spot discrepancies). It's also wise to download your records in case you need to provide documentation in the future. 

3. Compare your repayment plan options 

You'll need to switch to another plan soon, so start comparing alternative repayment plans. Current options include the Standard Repayment Plan, Graduated Repayment, Extended Repayment, and other income-driven repayment plans. 

You can use Federal Student Aid's loan simulator tool to compare your monthly payments, interest charges, and forgiveness eligibility on different plans. 

“Regardless of whether you change now or later, you should use a student loan calculator to understand what your payment obligation will be so that you can plan accordingly,” says Farrington.

4. Create a new budget to account for student loan payments 

If you haven't made student loan payments for years, you'll need to add these bills back into your budget. Take a look at your income and expenses to see how you can fit student loans back into your spending plan. 

If your student loan budget is tight, consider whether you can trim down discretionary spending. On the flip side of the coin, you may find ways to increase your income to account for this new expense. 

Try building a small buffer fund so you have at least one month of student loan payments in a separate savings account. That way, you won't be unprepared when that first student loan bill arrives. 

5. Set up autopay and payment reminders 

Setting up automatic monthly payments from your bank account can help you avoid missing payments and triggering late fees. Plus, you'll likely score a discount of 0.25 percentage points on your interest rate for using autopay. 

Set reminders in your calendar so you know when the withdrawal will take place. Make sure you have enough money in your bank account ahead of the due date to prevent overdrafts. 

How to ease the transition back into repayment 

Returning to repayment is going to be a big change for SAVE borrowers after years in forbearance. Here are a few tips for easing the transition: 

• Adjust your monthly budget: Reintroduce student loan payments back into your monthly budget. You might start setting aside your payments now so you have a buffer fund to use for your first few bills. 
• Find ways to save money: Look for flexible expenses that you can trim down, such as dining out, nonessential shopping, and unused subscriptions and memberships. 
• Look for opportunities to earn more: You could try working toward a promotion, starting a side hustle, or freelancing to increase your income. 
• Explore your repayment plan options: Review alternative plans and find one that works for you. Familiarize yourself with the upcoming changes to federal student loans, too, such as the new RAP repayment plan and the elimination of PAYE and ICR. 
• Understand your options for relief: If you're facing financial hardship, an income-driven plan could reduce your payments significantly. You might also qualify to postpone payments through deferment or forbearance.
• Consider refinancing your student loans: Refinancing your loans can lower your interest rate and adjust your monthly payments and repayment terms, potentially saving you money. Keep in mind that refinancing federal loans means losing eligibility for federal repayment plans, forgiveness programs, and other benefits. 

“I tell clients to assume [repayment] is coming sooner rather than later so they're not caught off guard,” says Josh Katz, a certified public accountant (CPA) and founder of Universal Tax Professionals. “Better to be prepared and have it delayed again than to be scrambling when payments restart.”