The SAVE plan is ending here's what you need to do

The SAVE plan is officially over, impacting over 7 million borrowers. Financial advisor Becca Craig joins Bob Powell to explain what clients need to know about this significant change in student loans. This discussion, prompted by a client's email, covers the critical aspects of debt repayment and understanding your financial aid options.

More than 7 million federal student loan borrowers are being forced to make a decision — and quickly. A recent court ruling has effectively ended the SAVE repayment plan, leaving borrowers scrambling to choose a new path forward.
The change is immediate. And for many, the stakes are high.
Those who fail to act could be automatically placed into a repayment plan that may not align with their financial goals, potentially increasing monthly payments or jeopardizing eligibility for loan forgiveness.
What this means for you
You must choose a new repayment plan or one may be chosen for you
Payments could increase depending on income and plan selection
Forgiveness strategies, including PSLF, may be affected
You likely have weeks, not months, to act
A fast-moving shift catches borrowers off guard
The Department of Education moved quickly following the court decision, sending notices to millions of borrowers.
For many, the email came with little context and a lot of uncertainty. Some dismissed it as routine. That could be a costly mistake.
“This is not a drill,” said financial adviser Becca Craig. Borrowers who had relied on SAVE — whether for lower payments or strategic deferment — now face a new reality.
Choose a plan — or risk being assigned one
Borrowers now must select from remaining repayment options, including the standard 10-year plan and other income-driven repayment plans.
Failing to act carries risk.
Experts say borrowers could be automatically placed into the standard plan, which typically carries higher monthly payments. That shift could disrupt long-term strategies, particularly for those pursuing forgiveness programs.
There’s also uncertainty around whether borrowers might be placed into the RAP plan. And once in, current rules suggest they may be locked into that plan for the duration of repayment.
Forgiveness strategies may need to change
The end of SAVE has implications for borrowers pursuing Public Service Loan Forgiveness.
Payments made under certain plans count toward forgiveness. Others do not.
If borrowers are moved into the wrong plan, they could lose credit toward PSLF. That’s especially concerning for those nearing eligibility.
Borrowers considering PSLF buybacks may also face higher costs. Without SAVE, some may need to make larger lump-sum payments to receive credit for past periods.
Income matters more than ever
The right repayment plan now depends heavily on income and filing status.
Borrowers earning under $100,000 may find some plans offer manageable payments. But higher earners could see costs rise, particularly under certain structures like RAP.
“There’s no one-size-fits-all answer,” Craig said.
The decision requires a careful look at income, family status and long-term goals.
A narrow window to act
Timing is critical.
Some experts estimate borrowers have about 90 days to make a selection, while others point to deadlines tied to the timing of notification emails.
Either way, the message is consistent — act now.
Waiting increases the likelihood that a default option will be assigned, potentially limiting flexibility.
Help is available
Borrowers don’t have to figure this out alone.
Financial advisers, including those with specialized credentials in student loan planning, can help evaluate options. There are also online tools and low-cost services available.
Given the pace of policy changes in student loan programs, working with someone who follows those developments can help avoid costly missteps.

Key Takeaways
The SAVE plan is over, affecting more than 7 million borrowers
Borrowers must choose a new repayment plan quickly
Default placement could mean higher payments or lost forgiveness eligibility
Income and financial goals should drive plan selection
Seeking professional guidance can help avoid costly mistakes.