Story perspectives

Education Dept Ends SAVE, Default Risk Soars, July Deadline

4/28/2026

Summary

Story summary

The Education Department ended the SAVE plan in March, giving borrowers until July 1 to select a new repayment option.
Experts warn the termination could trigger the largest rise in student-loan defaults in decades.
By December, 7.7 million loans were in default while 16 percent of borrowers in repayment were delinquent, up from about 10 percent pre-pandemic.
With reduced staff, department reported nearly 554 000 pending income-driven repayment applications, doubting it can handle the surge.

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Story summary

The Education Department ended the SAVE plan in March, giving borrowers until July 1 to select a new repayment option.
Experts warn the termination could trigger the largest rise in student-loan defaults in decades.
By December, 7.7 million loans were in default while 16 percent of borrowers in repayment were delinquent, up from about 10 percent pre-pandemic.
With reduced staff, department reported nearly 554 000 pending income-driven repayment applications, doubting it can handle the surge.