The Trump administration ended the Saving on a Valuable Education (SAVE) student repayment plan in March, requiring millions of borrowers to switch to new repayment options.  The Biden administration launched the SAVE plan in 2023, allowing about 7.5 million student loan borrowers to have their monthly payments reduced based on their adjusted gross income and family size. Under the plan, a single borrower with no dependents earning $32,800 or less per year could have a monthly payment of $0 for up to 10 years before loan payments are forgiven. Court challenges paused SAVE and placed borrowers on mandatory forbearance in 2024. Even though borrowers have not been required to make payments, interest has continued to accrue.  Here is what borrowers need to know about the end of the SAVE plan and what comes next.  What should borrowers be doing? According to a U.S. Education Department press release, loan servicers should have begun directing borrowers to select a new repayment plan. Borrowers have 90 days after receiving their notice to select a new plan. Borrowers who miss their deadline will automatically be enrolled in a standard plan, which could result in higher monthly bills. Karen Pasquale with Connecticut’s Student Loan Repayment Program said it’s beneficial for borrowers to pick a plan as soon as possible. If borrowers become delinquent or default, the risk eligibility for other loans and tax refunds and could have salary garnished.  The Education Department has a loan repayment calculator that allows borrowers to compare varying costs across different plans.  While income-based repayment and pay-as-you-earn plans still exist, the Education Department is introducing two new plans: a repayment assistance plan (RAP) and a new tiered standard plan. What is the new repayment assistance plan? It’s a new income-driven repayment plan. Eligible borrowers include those with direct subsidized and unsubsidized loans, Grad PLUS loans and direct consolidation loans.  RAP calculates borrowers’ monthly payments as a percentage of their income and cancels any remaining balance after 30 years of repayment.  If you make required payments on time and the amount is less than the interest that accrued over the previous month, the RAP plan will waive any unpaid interest.  However, monthly bills may be more expensive, and there are longer payment terms. You will not qualify to have your loans forgiven until you have made 30 years of payments.  What is the new tiered standard plan? This plan lets borrowers repay loans over a set period of time based on how much they owe. Unlike the standard 10-year plan, it offers fixed repayment terms of 10, 15, 20 or 25 years based on a borrower’s total outstanding loan balance.  Borrowers with larger loan balances could have lower monthly payments and more time to repay their loans. However, the plan does not include loan forgiveness.  Where can Connecticut borrowers get help? Connecticut is one of 17 states with a student loan ombudsman. A student loan ombudsman works with borrowers directly to help them navigate concerns, understand repayment options, and resolve issues with loan servicers.  Borrowers can contact Connecticut’s Student Loan Ombuds Office for more guidance. According to 2026 Department of Education data, 68,000 federal loan borrowers in Connecticut were in default, owing a total of $1.6 billion. ...read more read less