In March 2026, a federal court approved the settlement to end the Saving on a Valuable Education (SAVE) Plan. Borrowers enrolled in SAVE will remain in forbearance for now. Starting on July 1, federal loan servicers will begin issuing notices to borrowers, instructing them to exit the SAVE Plan and enroll in a different eligible repayment plan within 90 days. Borrowers need not wait to apply for a different payment plan, but processing times may be extended.
ED is also carrying out changes required under the budget reconciliation bill signed into law in July 2025, which made significant updates to federal student aid programs. While some provisions took effect immediately, others are still being finalized through the regulatory process, with implementation expected to continue in phases over the next several years. Additional guidance and updates are anticipated throughout 2026.