SAVE Plan Ending: RAP vs. Tiered Standard vs. Other Student Loan Repayment Plans

The SAVE Plan ended by court order on March 10, 2026, so affected federal student loan borrowers must move to another eligible repayment plan. Servicers are sending notices with individual deadlines, generally giving borrowers 90 days from the notice date to make a selection. If no choice is made, a borrower may be placed in the 10-year Standard Plan or the new Tiered Standard Plan, depending on loan disbursement dates. The best replacement is not the same for everyone: RAP bases payments on adjusted gross income and dependents, while fixed plans base payments mainly on loan balance, interest rate and repayment term. Borrowers should compare the first monthly bill, estimated total paid, interest treatment, forgiveness goals and loan eligibility before submitting a request. ([mohela.studentaid.gov](https://mohela.studentaid.gov/DL/resourceCenter/SAVEPlanFaq.aspx?utm_source=openai))

Key takeaways

• The SAVE Plan ended on March 10, 2026. After receiving a servicer notice, affected borrowers generally have 90 days to select another eligible repayment plan.
• RAP bases payments on adjusted gross income and claimed dependents, has a $10 monthly minimum, waives qualifying unpaid interest and may provide a principal-matching benefit after full, on-time payments.
• Tiered Standard uses fixed payments and assigns a 10-, 15-, 20- or 25-year term according to the outstanding principal balance; a longer term can reduce the monthly bill but increase total interest.
• Borrowers with loans disbursed before July 1, 2026 may have additional choices, including IBR, PAYE, ICR, Standard, Graduated or Extended repayment, subject to plan-specific rules. PAYE and ICR are scheduled to end no later than July 1, 2028.
• Do not compare plans using the monthly payment alone. Review total projected payments, interest, forgiveness implications, recertification requirements and whether the plan supports goals such as Public Service Loan Forgiveness.

What changed when the SAVE Plan ended in 2026?

A court order ended the Saving on a Valuable Education Plan on March 10, 2026. Federal Student Aid and loan servicers are contacting borrowers who were enrolled in SAVE or had pending SAVE applications and directing them to select another legal repayment plan. The deadline is tied to the date of the individual servicer notice—not simply March 10 or July 1. MOHELA states that its SAVE notices are being sent in waves from July through October 2026 and that borrowers generally must switch plans within 90 days of the notice. Borrowers with another servicer should use the deadline shown in their own email, letter or online account. ([mohela.studentaid.gov](https://mohela.studentaid.gov/DL/resourceCenter/SAVEPlanFaq.aspx?utm_source=openai)) If a SAVE borrower does not make a selection by the stated deadline, the servicer may place the loans in Standard repayment or Tiered Standard repayment based on the loans' disbursement dates. A borrower with a pending SAVE application may instead be returned to the plan used before the application. Choosing a new plan before the deadline can end the SAVE-related forbearance as soon as the request is processed, so borrowers should prepare for the new payment rather than assuming the forbearance will last for all 90 days.

RAP vs. Tiered Standard: the main differences

**Repayment Assistance Plan (RAP)** RAP is an income-driven plan for eligible Direct Loans. Its base annual payment equals a percentage of adjusted gross income, ranging from 1% to 10% across income bands. For income of no more than $10,000, the annual base amount is $120. The result is divided by 12 and reduced by $50 per month for each dependent claimed on the federal tax return, subject to a minimum payment of $10. RAP payments can change when income, tax filing information or dependents change. After a full, on-time payment, unpaid monthly interest is waived if the required payment does not cover all accruing interest. If the payment reduces principal by less than $50, a matching benefit can reduce principal further, subject to the program's limits. Any remaining eligible balance may be forgiven after 30 years of qualifying payments, and RAP payments may count toward Public Service Loan Forgiveness when all other requirements are satisfied. Parent PLUS loans and consolidation loans that repaid Parent PLUS debt are generally ineligible for RAP. ([edfinancial.studentaid.gov](https://edfinancial.studentaid.gov/income-driven-repaymentinformation-center/rap?utm_source=openai)) **Tiered Standard Plan** Tiered Standard provides a fixed monthly payment of at least $50. Its maximum term depends on the outstanding principal balance when the borrower enters the plan: less than $25,000 receives 10 years; $25,000 to less than $50,000 receives 15 years; $50,000 to less than $100,000 receives 20 years; and $100,000 or more receives 25 years. ([ed.gov](https://www.ed.gov/media/document/rise-final-rule-fact-sheet-113947.pdf?utm_source=openai)) Because Tiered Standard is not income-driven, a job loss or income reduction does not automatically lower the scheduled bill. It also does not provide end-of-term income-driven forgiveness and is not a qualifying repayment plan for PSLF. Its predictability may simplify budgeting, but extending repayment can produce substantially more interest than paying the same balance over 10 years.

How RAP, Tiered Standard and other plans compare

| Feature | RAP | Tiered Standard | 10-year Standard | Other legacy options | |—|—|—|—|—| | Payment basis | AGI and dependents | Balance, interest rate and assigned term | Balance and interest rate | Depends on plan; may use income, a longer term or increasing payments | | Payment pattern | Can change with financial information | Fixed | Fixed | IBR, PAYE and ICR respond to income; Graduated increases over time; Extended may be fixed or graduated | | Repayment horizon | Up to 30 years | 10–25 years by balance tier | Generally 10 years | Commonly 20–25 years for IDR; up to 25 years for Extended, subject to eligibility | | Interest protection | Qualifying unpaid monthly interest is waived after a full, on-time payment | No special income-based waiver | No special income-based waiver | Varies by plan | | End-of-term forgiveness | Possible after 30 years | No | No | Possible under eligible IDR plans | | PSLF treatment | Can qualify if all PSLF rules are met | Does not qualify | Payments can technically qualify, but scheduled repayment usually leaves nothing after 10 years | Confirm the specific plan; eligible IDR payments generally provide the clearest PSLF path | | Main tradeoff | A potentially lower current payment may mean a longer repayment period | Predictable payment, but longer tiers can increase interest | Often lower total interest, but a higher monthly bill | May offer flexibility, but eligibility and 2028 plan sunsets matter | Borrowers whose loans were all disbursed before July 1, 2026 may still see IBR, PAYE, ICR, Standard, Graduated or Extended options in the federal Repayment Calculator. PAYE and ICR are scheduled to end no later than July 1, 2028, so a low payment under one of those plans should be weighed against the need to change plans again. Borrowers who received a new Direct Loan or created a new Direct Consolidation Loan on or after July 1, 2026 may have choices limited primarily to RAP and Tiered Standard. Loan type and disbursement history control the actual result. ([studentaid.gov](https://studentaid.gov/articles/repayment-calculator/?utm_source=openai))

Illustrative payment comparison: why assumptions matter

Consider an unmarried borrower with no dependents, $30,000 in eligible Direct Loans, a weighted average interest rate of 6.5% and adjusted gross income of $45,000. Assume the borrower is just beginning the comparison and ignore any prior qualifying-payment credit. **RAP:** An AGI of $45,000 falls in RAP's 4% band. Four percent of $45,000 is $1,800 per year, or an initial payment of about **$150 per month**. The payment could change with future income or dependents. A reliable total-paid estimate requires assumptions about future income, annual recalculation, interest waivers, principal matching, prior payment credit and possible forgiveness. **Tiered Standard:** A $30,000 balance falls in the 15-year tier. At 6.5%, a simplified fixed-payment calculation produces a payment of about **$261 per month**, approximately **$47,040 paid over 15 years**, including about **$17,040 of interest**. **10-year Standard:** Using the same balance and rate produces a payment of about **$341 per month**, approximately **$40,877 paid over 10 years**, including about **$10,877 of interest**. This illustration shows the central tradeoff: RAP initially requires less cash each month in this scenario, while the 10-year Standard Plan has the highest payment but the lowest scheduled interest of the three fixed-assumption examples. Tiered Standard sits between them on monthly cost but extends repayment and adds interest. These figures are educational estimates, not quotes. Actual federal calculations can differ because loans may have multiple rates, accrued interest, different payment histories and plan-specific rules.

Forgiveness, loan eligibility and consolidation questions

**Forgiveness goals:** RAP may provide forgiveness after 360 qualifying monthly payments. IBR may provide forgiveness after 20 or 25 years, depending on borrower history. PAYE and ICR can also offer end-of-term forgiveness while they remain available, but both are scheduled to end by July 1, 2028. Any projection should account for previous qualifying payments, the required future plan change and the tax law in effect if a balance is eventually discharged. **Public Service Loan Forgiveness:** RAP can be used for PSLF if the borrower also has eligible Direct Loans, qualifying full-time employment and qualifying payments. Tiered Standard is not a PSLF repayment plan. Borrowers pursuing PSLF should not select a plan solely because it has the lowest displayed payment; they should verify that the plan and projected payments qualify. **Parent PLUS debt:** Parent PLUS loans are generally ineligible for RAP. Consolidation does not automatically create RAP eligibility when the consolidation loan paid Parent PLUS debt. These borrowers may have limited choices, and relevant consolidation dates can change which income-driven options appear. **Consolidation risk:** A new Direct Consolidation Loan disbursed on or after July 1, 2026 can change the repayment plans available for both older and newly consolidated debt. Before consolidating, compare the calculator results with consolidation turned on and off. Also review potential effects on interest, payment-count credit and forgiveness timing rather than treating consolidation as a routine administrative step.

A practical 90-day action plan for SAVE borrowers

1. **Find the actual notice date and deadline.** Save a copy of the servicer letter or email and record the exact final date for choosing a plan. 2. **Inventory every federal loan.** In the StudentAid.gov dashboard, list the loan type, current principal, accrued interest, rate, disbursement date, servicer and current repayment status. 3. **Estimate affordable payment ranges.** Update a working budget using at least three amounts: the estimated RAP payment, the likely fixed-plan payment and a buffer for irregular expenses. 4. **Use askForay to organize scenarios.** Compare how different payment levels could affect monthly cash flow, emergency savings and debt priorities before making a federal plan selection. 5. **Run the official Repayment Calculator while logged in.** Compare eligibility, first payment, total projected payments, interest, end date and estimated discharge. Test consolidation both on and off only if it is relevant. ([studentaid.gov](https://studentaid.gov/articles/repayment-calculator/?utm_source=openai)) 6. **Review forgiveness separately.** If pursuing PSLF or IDR forgiveness, confirm how the new plan treats future payments and ask the servicer to clarify any payment-count questions. 7. **Submit before the deadline and keep proof.** Save the confirmation number, application copy and screenshots. Continue checking the account until the new plan and payment amount appear. 8. **Prepare for the first withdrawal.** A new plan may be processed before the full 90-day period ends. Verify the due date and amount before enabling or updating automatic payments. For major decisions involving consolidation, Parent PLUS loans, forgiveness or tax consequences, consider guidance from the federal loan servicer and an appropriately qualified professional.

FAQs

Sources

• End of the SAVE Plan — MOHELA, an official servicer of Federal Student Aid. Supports the March 10, 2026 SAVE termination date, MOHELA's July-through-October notice waves, the 90-day selection period and possible automatic placement in Standard or Tiered Standard repayment.
• Compare Repayment Plans With Our Repayment Calculator — Federal Student Aid, U.S. Department of Education. Supports using the official calculator to compare eligibility, monthly and total payments, interest, discharge estimates and the effects of consolidation, as well as the July 1, 2028 PAYE and ICR sunset.
• RISE Final Rule Fact Sheet — U.S. Department of Education. Supports Tiered Standard's balance-based 10-, 15-, 20- and 25-year terms and RAP's unpaid-interest waiver, principal reduction benefit and July 1, 2026 implementation.
• Repayment Plan Comparison — Edfinancial Services, an official servicer of Federal Student Aid. Supports current plan eligibility, loan types, repayment periods, minimum payments, forgiveness horizons and key differences among RAP, Tiered Standard, Standard, Extended, IBR, PAYE and ICR.

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