Understanding SAVE Plan Alternatives

With the SAVE plan ended by court order in 2026, many borrowers are wondering what their options are. This guide explains the alternative income-driven repayment (IDR) plans available.

What Happened to SAVE?

The SAVE (Saving on a Valuable Education) plan was introduced as the most generous IDR plan, offering:

• 5% of discretionary income for undergraduate loans
• 10% for graduate loans
• 100% unpaid interest subsidy
• Forgiveness after 10-20 years

However, a March 10, 2026 court order ended SAVE, leaving borrowers in need of alternatives during the 2026 transition window.

Your IDR Options

RAP (Repayment Assistance Plan)

The new 2026 income-driven option for eligible Direct Loan borrowers.

• 1-10% of adjusted gross income (AGI)
• $50 monthly payment reduction for each dependent
• $10 minimum monthly payment
• 30-year forgiveness timeline outside PSLF
• Not available for consolidation loans that include Parent PLUS loans

PAYE (Pay As You Earn)

Best for newer borrowers with loans after October 2007 and October 2011.

• 10% of discretionary income payments
• Payment cap protects high earners
• No interest capitalization if staying in plan
• Forgiveness after 20 years

IBR (Income-Based Repayment)

Available to all borrowers regardless of loan date.

• 10-15% of discretionary income
• Good option for those with older loans who don't qualify for PAYE
• Spouse income excluded if filing separately
• Forgiveness after 20-25 years

ICR (Income-Contingent Repayment)

The only option for Parent PLUS loan borrowers after consolidation into Direct Loans.

• 20% of discretionary income (highest percentage)
• Always counts spouse income
• Forgiveness after 25 years

What Should You Do?

1. Check your eligibility – Each plan has different requirements
2. Compare payments – Use our IDR Calculator to see estimates
3. Consider your timeline – How long until forgiveness?
4. Apply – Submit your IDR application through StudentAid.gov

The right plan depends on your loan type, income, and forgiveness timeline.

Quick Comparison

Need help deciding? Use our IDR Plan Calculator to compare plans based on your specific situation.