What replaced SAVE? Your repayment options in 2026
What happened to the SAVE plan
SAVE (the Saving on a Valuable Education plan) was challenged in court and ultimately struck down. The Department of Education is winding it down: borrowers who were enrolled have been placed in a forbearance and are being directed to choose a different repayment plan. SAVE is not coming back, so the practical question isn’t “how do I keep SAVE” — it’s “which plan do I move to.”
What happens to your account now
Three things matter if you were on SAVE:
- You must pick a new plan. If you do nothing, you can be moved into a standard plan, which on a physician balance can mean a much higher payment overnight.
- SAVE forbearance months generally don’t count toward PSLF. Time sitting in the SAVE forbearance is not a qualifying payment, so your PSLF clock effectively pauses while you wait.
- You may be able to buy those months back later. If you worked full-time for a qualifying employer during the forbearance, PSLF buyback may let you recover them — but switching to a qualifying plan now is the cleaner move for most people.
Your real options in 2026
With SAVE gone and PAYE and ICR being phased out by 2028, two income-driven plans carry forward:
| Plan | What it is |
|---|---|
| IBR | 10% of discretionary income (15% if you first borrowed before July 1, 2014), capped at the 10-year Standard payment. The durable income-driven plan; forgiveness in 20 or 25 years, or 120 payments under PSLF. |
| RAP (new) | A sliding 1–10% of your total income, −$50 per child, with no cap but it waives unpaid interest. Forgiveness in 30 years, or 120 payments under PSLF. |
| Standard | Fixed 10-year payment. Not income-driven and usually not optimal during training, but it’s the default you’ll land in if you don’t choose. |
SAVE vs RAP vs IBR at a glance
| SAVE (ended) | RAP (new) | IBR | |
|---|---|---|---|
| Status | Struck down, winding down | Launched July 1, 2026 | Active & durable |
| Payment base | 5–10% of discretionary income | 1–10% of total income, −$50/child | 10% discretionary (15% older) |
| Payment cap | None | None | 10-year Standard payment |
| Unpaid interest | Subsidized | Waived | Accrues |
| Forgiveness term | 20–25 years | 30 years | 20–25 years |
| PSLF-eligible | Was yes | Yes | Yes |
How to choose between IBR and RAP
Residents and fellows usually do best on IBR: a low, income-based payment that’s PSLF-eligible and not affected by the 2028 phase-out. Attendings pursuing PSLF generally want whichever plan produces the lowest payment over the 120 months, since the balance is forgiven tax-free either way — often the capped IBR at high income. Attendings not pursuing PSLF should compare total lifetime cost: RAP’s interest waiver helps when the balance is large relative to income, while IBR’s cap helps high earners with moderate balances. The honest answer depends on your numbers, which is what our RAP vs IBR breakdown and the calculator are for.
What to do now
Switch at StudentAid.gov rather than waiting for the forbearance to expire. Confirm your loans are Direct, choose IBR or RAP (model both first), and if you’re pursuing PSLF, re-certify your employment so your count stays accurate. If you spent qualifying-employer months in the SAVE forbearance, note them for a possible buyback later.
Frequently asked questions
What happened to the SAVE plan?
SAVE was challenged in court and struck down. The Department of Education is winding it down: enrolled borrowers were placed in a forbearance and are being directed to choose a new repayment plan. SAVE is not returning.
What replaced SAVE?
There is no single replacement. The new Repayment Assistance Plan (RAP) launched July 1, 2026, and IBR remains available. Borrowers now choose between IBR and RAP (PAYE and ICR are being phased out by 2028).
Does time on SAVE count toward PSLF?
Generally no. Months in the SAVE forbearance are not qualifying PSLF payments. If you worked full-time for a qualifying employer during that time, PSLF buyback may let you recover them later, but switching to a qualifying plan now is usually the better move.
Is RAP or IBR better after SAVE?
It depends on your income and balance. Residents usually do best on IBR; attendings should compare total cost, since RAP waives unpaid interest while IBR is capped at the 10-year Standard payment. Model both before choosing.
What happens if I do nothing after SAVE ends?
You can be moved into a standard 10-year plan, which on a physician-sized balance can mean a much higher monthly payment. Choose IBR or RAP at StudentAid.gov before the forbearance expires.
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