The SAVE plan – it’s officially over.
And now seven million borrowers must figure out what to do next.
In a recent interview, Becca Craig, a financial adviser with Focus Partners Wealth, explained the options and the best course of action for student loan borrowers who recently received a hard to decipher email from the Department of Education.
Below is a transcript of that interview, edited for clarity and brevity.
Becca Craig: The topic for today actually came out of an email from a client a few weeks ago. It was the same email that more than seven million borrowers received almost immediately after the court decision. And I’ll say this – it’s probably the fastest the Department of Education has ever moved on anything.
The email was forwarded to me with just a question mark. And I think that’s where a lot of borrowers are right now. Some thought it wasn’t urgent or could be dealt with later. But that mindset needs to change.
For borrowers who were in the SAVE plan – whether in deferment, accruing interest, or even during the COVID pause – this is not a drill. Action needs to be taken in the coming weeks.
Robert Powell: Let’s talk about those actions. What’s first on the list?
Take action – or a plan will be chosen for you
Becca Craig: The number one action is simple: take action.
The email itself was long and wordy, but it boils down to this — the SAVE plan is no more. There is no resurrection. Borrowers will need to choose another repayment plan, or the Department of Education will choose one for them.
My recommendation is to be proactive. Check your email, including your junk folder. Go to studentaid.gov and select a repayment plan based on your goals and financial situation. That could be the standard 10-year plan or one of the remaining income-driven repayment plans.
Robert Powell: If someone doesn’t act, what happens? Are they defaulted into a specific plan?
What happens if you don’t choose a plan
Becca Craig: That’s still unclear. Borrowers could be placed into the standard 10-year plan. If that happens, those payments may not count toward forgiveness programs like Public Service Loan Forgiveness.
There’s also the possibility of being placed into the RAP plan. But once a borrower elects that plan, the current statutory language suggests they may remain in it for the rest of repayment.
So the message is clear – don’t sleep on this. Choose your own plan.
Robert Powell: What about borrowers pursuing forgiveness or those earning over $100,000?
How income and forgiveness goals affect your choice
Becca Craig: No plan is inherently good or bad. It depends on the borrower.
For some, particularly those earning less than $100,000, the RAP plan may offer a lower payment than other options. But for higher earners, payments under RAP could be higher than under income-based repayment or PAYE.
For borrowers pursuing Public Service Loan Forgiveness, this change matters. If you were relying on SAVE for qualifying payments or planning a PSLF buyback, you’ll likely need to use a different repayment plan. And that could mean a larger lump-sum payment to receive credit.
Guidance from the federal government is still evolving, but borrowers should not wait.
Most estimates suggest borrowers have about 90 days or until May to act. The key is to make a decision before one is made for you.
Robert Powell: If this feels overwhelming, should borrowers seek help?
Don’t go it alone
Becca Craig: Yes. There are more resources available today than ever before.
There are large firms, independent advisers, and low-cost or even free tools that can help borrowers evaluate their options. Some advisers specialize in student loan repayment or college planning.
This is a big decision. Borrowers don’t need to go it alone.
Robert Powel: You hold a CSLP designation. What does that mean for borrowers?
Why specialized advice may matter
Becca Craig: CSLP stands for Certified Student Loan Professional. There are also designations focused on college planning.
These programs exist because student loan policy changes frequently. Advisers with these designations stay current on those changes, which helps borrowers make informed decisions.
Finding an adviser who understands these complexities can make a real difference.
Related: Class of 2026 grads walk into a harsher student loan system