New York Attorney General Letitia James is urging New Yorkers with federal student loans enrolled in the Saving on a Valuable Education plan to prepare for its termination by selecting a new repayment option before they are automatically transferred to another plan.
Beginning July 1, loan servicers started notifying SAVE borrowers that they have 90 days to choose a different repayment plan before the mandatory forbearance ends.
Borrowers who do not select a new repayment option within that 90-day period will likely be automatically enrolled in the Standard Plan, which bases monthly payments on a borrower's loan balance rather than income and may result in higher costs.
"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 the SAVE plan should start searching for an alternative repayment plan to get ahead of this transition."
Depending on when a borrower's most recent federal loan was disbursed or consolidated, available options may include Income-Based Repayment, Pay as You Earn, Income-Contingent Repayment, the Repayment Assistance Plan, or the Standard, Graduated and Extended plans.
Borrowers whose most recent federal loan was first disbursed or consolidated on or after July 1, 2026, can choose between the Repayment Assistance Plan and the Standard Plan.
The transition affects thousands of New Yorkers, including many in Brooklyn, who relied on the SAVE plan's income-driven structure to help manage student loan payments.
Borrowers who do not review their repayment options before their forbearance ends could face significantly higher monthly payments, making the transition an important financial decision for households already managing student debt.
Free guidance is available through the Education Debt Consumer Assistance Program, which offers one-on-one counseling to help borrowers understand their choices and select the repayment plan that best fits their financial situation.
New Yorkers can contact the Education Debt Consumer Assistance Program by calling 888-614-5004 or emailing [email protected].
Additional information about the end of the SAVE plan and federal student loan repayment options is available through the program and the Office of the Attorney General Student Lending Guide.
