WASHINGTON — A consumer alert has been issued urging New Yorkers with federal student loans to prepare for the upcoming termination of the Saving on a Valuable Education plan.
On July 1, borrowers enrolled in the SAVE plan began receiving notifications from their student loan servicer about choosing a different repayment plan.
All those currently enrolled in SAVE who do not choose a new plan within 90 days of receiving a notification will likely be automatically moved to the standard plan, which does not consider income and often requires higher monthly payments.
New York State Attorney General Letitia James encourages all New Yorkers on the SAVE plan to consider their options and choose the repayment plan that makes the most financial sense for them.
“As federal cuts change student loan programs across the country, my office is here to ensure New Yorkers have all the facts about their loan options,” James said in a statement.
“Student loans are already a heavy burden, and no New Yorker should find themselves in an expensive repayment plan they didn’t choose.
“New Yorkers enrolled in SAVE plans should start searching for an alternative repayment plan to get ahead of this transition.”
The SAVE plan is an income-driven repayment plan implemented in 2023 that was designed to be one of the most affordable options available.
In 2024, a federal court ordered the U.S. Department of Education to place all borrowers enrolled in SAVE into a mandatory forbearance and eventually terminate the SAVE plan.
The Trump administration announced its measures to end SAVE in December 2025.
PLAN OPTIONS
Borrowers whose most recent loan was disbursed or consolidated before July 1 may have the following options depending on their circumstances:
— Income-Based Repayment.
— Pay as You Earn.
— Income-Contingent Repayment.
— The Repayment Assistance Plan, which became available July 1.
— Traditional repayment plans, including standard, graduated and extended.
While returning borrowers have access to ICR and PAYE plans for now, all borrowers on these plans will have to pick new plans by July 1, 2028.
Borrowers whose most recent loan will be disbursed or consolidated on or after July 1 will have to choose between RAP and standard plans.
For free, personalized advice and guidance about student loan options, New Yorkers can contact the Education Debt Consumer Assistance Program at 888-614-5004 or by email at edcap@cssny.org.
More information about transitioning away from the SAVE is available at edcapny.org/resources-for-borrowers/transitioning-from-save.
More information on student lending is available at ag.ny.gov/resources/individuals/education-students/student-lending.