Student-loan borrowers face major changes that start today. Your repayment plan may be phased out.

The Department of Education is phasing out several income-driven repayment plans and notifying borrowers of changes to their repayment options. Borrowers currently enrolled in REPAYE, PAYE, Standard, or other discontinued plans will be moved to the SAVE plan or notified of alternative options. The SAVE plan, which launched in 2023, caps monthly payments at 5 percent of discretionary income for undergraduate borrowers and offers forgiveness after 20 years of payments instead of the standard 25 years. Borrowers affected by the changes are receiving notifications detailing which plan they will be moved to and when the transition occurs.

Next story