New Yorkers with federal student loans are urged to prepare for the upcoming termination of the Saving on a Valuable Education (SAVE) plan.
On July 1, 2026, borrowers who are enrolled in the SAVE plan began receiving notifications from their student loan servicer about choosing a different repayment plan. All those currently enrolled in the SAVE plan who do not choose a new repayment plan within 90 days of receiving a notification will likely be automatically moved to the Standard Plan, which does not consider income and often requires higher monthly payments than other plans.
New York State Attorney General Letitia James encourages all New Yorkers on the SAVE plan to consider their options and choose the repayment plan that makes the most financial sense for them, saying, “As federal cuts change student loan programs across the country, my office is here to ensure New Yorkers have all the facts about their loan options. Student loans are already a heavy burden, and no New Yorker should find themselves in an expensive repayment plan they didn’t choose. New Yorkers enrolled in SAVE plans should start searching for an alternative repayment plan to get ahead of this transition.”
The SAVE plan is an income-driven repayment plan implemented in 2023 that was designed to be one of the most affordable options available. In 2024, a federal court ordered the U.S. Department of Education to place all borrowers enrolled in SAVE into a mandatory forbearance and eventually terminate the SAVE Plan. The Trump administration announced its measures to end the SAVE plan in December 2025
Borrowers whose most recent loan was disbursed or consolidated before July 1, 2026 might have the following options depending on their circumstances:
- Income-Based Repayment (IBR);
- Pay as You Earn (PAYE);
- Income-Contingent Repayment (ICR);
- The Repayment Assistance Plan (RAP), which became available on July 1, 2026; or
- Traditional repayment plans, including Standard, Graduated, and Extended plans.
While returning borrowers have access to PAYE and ICR plans for now, all borrowers on these plans will have to pick new plans by July 1, 2028.
Borrowers whose most recent loan will be disbursed or consolidated on or after July 1, 2026, will have to choose between the Repayment Assistance Plan (RAP), which became available on July 1, 2026, and the Standard Plan.
For free, personalized advice and guidance about student loan options, New Yorkers can contact the Education Debt Consumer Assistance Program (EDCAP) by phone at 888-614-5004 or by email at edcap@cssny.org. More information about transitioning away from the SAVE is available online from EDCAP. More information on student lending is available in The Office of the Attorney General’s Student Lending guide.
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