Leaving the SAVE Plan: Your Three Choices
The SAVE plan is finished, and the millions of borrowers who were on it now face a forced choice among three landing zones. Each has a different payment formula, a different forgiveness clock, and different consequences for making no choice at all. Here is how to decide.
The SAVE plan — the most generous income-driven plan ever offered — is over, struck down in court and formally wound down. For the roughly 7.5 million borrowers who were on it, that means a forced decision, on a clock. The good news: there are only three landing zones, and once you understand what each one does, the right choice for your situation is usually clear.
The three landing zones
Every borrower leaving SAVE chooses among the same three plans:
| Plan | Payment basis | Forgiveness | PSLF? |
|---|---|---|---|
| RAP | 1–10% of total AGI, $10 floor | 30 yrs (taxable) | Yes |
| IBR | 10–15% above 150% poverty line | 20/25 yrs | Yes |
| Tiered Standard | Fixed, 10–25 yr term | None | No |
Those three rows contain the whole decision. The question is which one fits your income, your forgiveness timeline, and whether you're pursuing public service forgiveness.
When RAP is the answer
RAP shines for borrowers who value balance protection — the interest waiver and $50 principal match mean an on-time payment always shrinks the balance. It's also the only income-driven option for anyone who takes a new loan after July 1, 2026, and it counts toward PSLF. For lower-income borrowers and those who intend to pay their loans off rather than chase forgiveness, RAP's structure is often favorable.
When IBR is the better landing
IBR is the one surviving legacy income-driven plan, and it has two advantages RAP lacks: a shorter forgiveness clock (20 or 25 years versus RAP's 30) and a formula that protects a poverty-line slice of income before charging. For a borrower who is already years into an income-driven forgiveness timeline, or whose income makes the poverty-line protection valuable, IBR can mean paying less and finishing sooner. Our RAP vs IBR comparison quantifies the difference.
Watch the interaction between plans: taking a new loan after July 1, 2026 can force all your loans onto RAP and forfeit IBR access. And RAP months do not count toward IBR's shorter forgiveness clock. Choosing is easier to do well once than to undo later.
When Tiered Standard makes sense
The Tiered Standard plan offers fixed payments over a set term, like a mortgage. It has no forgiveness track and doesn't count toward PSLF, so it's rarely right for someone seeking forgiveness. But for a borrower with a manageable balance who simply wants a predictable payoff and doesn't need income-driven flexibility, it's a clean option.
The deadline you can't ignore
Leaving SAVE isn't optional, and neither is choosing. SAVE borrowers get a window from their servicer notice, and the broader 2028 deadline governs when legacy plans finally close. Making no choice can land you in a plan you didn't pick. The move is to compare your three payments in the calculator, factor in your forgiveness goals and PSLF status, and choose actively within your window. Our SAVE exit guide lays out the step-by-step.