Student loan servicers begin 90-day countdown for borrowers to leave SAVE plan

Student loan servicers sent notices to borrowers informing them they have 90 days to leave the SAVE plan, according to announcements from servicers including Navient, Mohela, and Great Lakes Higher Education Loan Services Corporation. The notices followed a court ruling that blocked the plan's income-driven repayment formula. Borrowers who do not exit the plan within the 90-day window will be transferred to an alternative repayment plan, servicers stated. The SAVE plan, created under the Biden administration, allowed borrowers to cap monthly payments at 5 percent of their discretionary income.

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