Story perspectives

7 Million Borrowers Must Switch Plans by July 1

3/28/2026

Summary

Story summary

The U.S. Department of Education will notify 7 million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan to switch by July 1.
Borrowers will have 90 days to select a new plan.
The Saving on a Valuable Education (SAVE) Plan was terminated by a federal court.
The Repayment Assistance Plan will tie payments to income and dependents, with terms from 10 to 25 years.

History

Historical Context

The Higher Education Act of 1976 aimed to enhance educational access through federal financial aid, leading to the establishment of programs overseen by the Department of Education, which now supports 7 million borrowers. Recent legal challenges, including the termination of the SAVE Plan, have prompted the introduction of a new Repayment Assistance Plan, linking payments to income and potentially reshaping borrower obligations over the next 10 to 25 years.

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Story summary

The U.S. Department of Education will notify 7 million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan to switch by July 1.
Borrowers will have 90 days to select a new plan.
The Saving on a Valuable Education (SAVE) Plan was terminated by a federal court.
The Repayment Assistance Plan will tie payments to income and dependents, with terms from 10 to 25 years.

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