Student-loan borrowers risk being forced into the most expensive repayment plan if they don't take action this month
Student-loan borrowers currently on the SAVE plan must transition to a new repayment plan by September 29 to avoid being automatically moved to a more expensive standard plan. This change follows the Trump administration's decision to eliminate the Biden-era SAVE program.
Why it matters
Failure to act could result in significant financial hardship for thousands of borrowers facing higher monthly payments.
President Donald Trump's administration is requiring student-loan borrowers to transition off the SAVE repayment plan this year. Kevin Dietsch/Getty Images The deadline for the first batch of student-loan borrowers to transition off SAVE is September 29. Borrowers are being notified in waves of their 90-day timeframe to pick a new plan. If they do not transition, they'll automatically be placed in the most expensive repayment plan. The clock is ticking for some student-loan borrowers to find a new repayment plan . September 29 is the first deadline for certain borrowers to transition off the SAVE plan, a Biden-era income-driven plan that gave borrowers cheaper monthly payments and a shorter timeline to debt relief. If borrowers do not select a new plan themselves, they'll automatically be transferred to a standard repayment plan and face the most expensive monthly payments.
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