Student-loan borrowers are getting their first batch of notices to switch repayment plans

The SAVE exodus has officially begun.

The first batch of notices to student-loan borrowers enrolled in the SAVE repayment plan went out on July 1, informing them of their 90-day timeframe to switch to a new plan and begin making payments.

The notice that borrowers received, reviewed by Business Insider, has the subject line: “You have 90 days to select a new repayment plan.”

SAVE “is no longer available to borrowers,” an email from federal servicer EdFinancial said. “As a result of the settlement, EdFinancial was directed by the U.S. Department of Education (ED) to move all borrowers out of the SAVE plan.”

The Education Department said in a recent court filing that while September 29 is the earliest that borrowers will have to switch plansthe transition will occur in waves, and most borrowers will receive more time. Federal servicer Nelnet said in a FAQ on its website that since it is notifying 3 million borrowers, its customers will receive a notice “between July 2026 and March 2027.” This means some borrowers could have until the end of May 2027 to switch off SAVE.

Borrowers will remain on the SAVE forbearance, during which interest will continue to accrue, until their application for a new repayment plan is processed, Nelnet said in its FAQ.

Undersecretary of Education Nicholas Kent said at a conference this week that servicers will contact up to 250,000 borrowers each week, notifying them of their timeframe to switch plans. If they do not switch, they will be moved to the standard repayment plan or the new tiered plan, which are the most expensive options.

The SAVE plan was a Biden-era repayment plan that allowed for cheaper monthly payments and a shorter timeline to loan forgiveness. In March, the Trump administration announced a settlement eliminating the plan and encouraged the 7 million borrowers on SAVE to enroll in its new Repayment Assistance Plan, which became available on July 1.

Kent posted on X on July 1 that nearly 46,000 borrowers have submitted applications to enroll in RAP.

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