SAVE Plan Transition Guide 2026
Navigate the changes to the SAVE repayment plan effective July 1, 2026. This guide will help you understand what's changing and what you need to do.
Important Deadline: September 28, 2026. You must take action by this date to maintain your current loan status on the SAVE plan.
SAVE Plan Transition Wizard
Your Status
Loan Details
Comparison
Recommendation
Step 1: Confirm Your SAVE Plan Status
Are you currently on the SAVE repayment plan?
Step 2: Enter Your Loan Details
Step 3: See Your Plan Comparison
Your Current vs. New SAVE Payments (After July 1, 2026)
Current Monthly Payment
$0
New Monthly Payment (SAVE)
$0
Estimated Monthly Savings
$0
Step 4: Your Personalized Recommendation
Based on your information, your personalized recommendation will appear here.
Key SAVE Plan Changes Effective July 1, 2026
New Payment Calculation Tiers
SAVE plan payment amounts are being adjusted based on federal poverty lines. Your new monthly payment will be calculated as a percentage of your discretionary income:
- Below 225% FPL: $0 payment (interest does not accrue on undergraduate loans)
- 225-275% FPL: 5% of discretionary income (increased from 3.43%)
- Above 275% FPL: Increases gradually up to 10%
Interest Accrual Changes
Borrowers with payments of $0 on undergraduate loans will no longer have unpaid interest capitalized (added to principal) monthly. This is a major benefit for low-income borrowers.
Forgiveness Timeline
The borrower forgiveness timeline remains at 20 years for undergraduate loans and 25 years for graduate/professional loans.
What You Need to Do
- Recertify by September 28, 2026: Submit updated income documentation
- Review your new payment amount: Check your servicer's notice for your new monthly payment
- Update your budget: Plan for any changes in monthly payment amounts
- Understand your benefits: Learn about the new interest accrual rules that benefit you
Frequently Asked Questions
Will my payment go up or down on July 1, 2026? +
This depends on your individual situation. Many borrowers will see lower payments due to the new interest accrual protection and adjusted calculation methods. Use the comparison tool above to see your specific impact.
What is "discretionary income"? +
Discretionary income is your adjusted gross income minus 225% of the federal poverty line for your family size. This is the amount the government considers available for loan payments after basic living expenses.
Do I automatically transition to the new SAVE plan? +
If you're already on SAVE, you'll be automatically moved to the new terms on July 1, 2026. However, you must recertify your income by September 28, 2026, to maintain your status and ensure your payment is calculated correctly.
What happens if I don't recertify by the deadline? +
If you don't recertify by September 28, 2026, you may be moved to the Standard 10-year repayment plan and receive a higher monthly payment. Recertify as soon as possible to avoid this.
How do I recertify my income? +
You can recertify through your loan servicer's website (the company managing your loans) or by contacting them directly. You'll need to provide recent tax returns or income documentation. Visit studentaid.gov for more information on the recertification process.