Federal student loan repayment rules will change again in 2026, with the most significant adjustment being the end of the SAVE plan. For those pursuing Public Service Loan Forgiveness, this shift immediately raises questions about payment amounts, qualifying employment, and whether forbearance will delay forgiveness. After almost two years in forbearance, borrowers enrolled in SAVE are now required to choose a new repayment plan, often resulting in higher payments for many physicians and a pressing need to revisit their repayment strategies.

What Changed

In March 2026, federal guidance confirmed that borrowers in SAVE must exit the plan and choose another repayment option. Beginning July 1, servicers are expected to send notices to affected borrowers giving them at least 90 days to switch. If a borrower does not make a choice in time, the Department of Education has said the borrower may be moved automatically into a Standard Repayment Plan or a new Tiered Standard Plan.

While some people may want to delay choosing a new plan until they are forced to, those pursuing PSLF will benefit from starting payments that qualify under the program.

Repayment Plan Options for Borrowers Leaving SAVE

• Old IBR (Income-Based Repayment): For borrowers whose first federal loans predate July 1, 2014, Old IBR generally sets payments at 15% of discretionary income, with forgiveness after 25 years. It can still be relevant for those pursuing PSLF because it remains a qualifying income-driven plan, although the payment formula is less favorable than New IBR. This is likely the lowest payment amount for those with loans prior to October 2007.
• New IBR (Income-Based Repayment): For borrowers who first borrowed on or after July 1, 2014, New IBR generally sets payments at 10% of discretionary income, with forgiveness after 20 years. For many pursuing PSLF, this may be the first plan to evaluate as a replacement for SAVE because it preserves PSLF eligibility and is often more favorable than Old IBR. This is likely the lowest payment amount for those with no loans prior to July 2014.
• Pay As You Earn (PAYE) or Income-Contingent Repayment (ICR): Some borrowers may still be eligible for one of these plans, depending on loan history, timing, and loan type, but eligibility should be carefully checked. Both of these plans are set to end on July 1, 2028.
• Repayment Assistance Plan (RAP): Federal officials have said RAP is expected to launch July 1, 2026. For physicians with lower current income (still in training), it may be worth comparing IBR with other repayment plans because the payment structure matters more as earnings increase.
• Standard Repayment or Tiered Standard Repayment: These may be the default if no action is taken.

What PSLF Borrowers Should Do Now

If you are pursuing Public Service Loan Forgiveness, the goal is not simply to get back into repayment—it is to protect your path to 120 qualifying payments while working for an eligible employer. That matters especially in medicine, because residency and fellowship years can be some of the most valuable PSLF years if your employment qualifies and your payments stay low under an eligible plan. Time spent in SAVE-related forbearance may not count toward PSLF, so physicians should act quickly to avoid losing additional qualifying months.

Below are recommended actions for those on SAVE pursuing PSLF:

• Log in to www.studentaid.gov and verify your qualifying payment count is correct.
• Choose a PSLF-eligible repayment plan. For many current borrowers, IBR may be the most practical first option after SAVE. PAYE, ICR, or RAP may also deserve review depending on eligibility, career stage, and projected income. The calculator below includes estimates for all repayment plans:
  https://studentloanplans.app/
  https://www.edcapny.org/resources-for-borrowers/repayment-plan-calculator/
  
• Track missed months and evaluate PSLF buyback if you are near the finish line. Current Federal Student Aid guidance says buyback is generally available only when buying back those months would complete forgiveness, so it matters most for those who are close to 120 qualifying months of employment.

The bottom line: if you were counting on SAVE, now is the time to protect your PSLF strategy. The right next step depends on your loan type, income, and how close you are to 120 qualifying payments. We are here to guide you through your options. Please email or call if you’d like to set up a meeting or a phone conversation.

Mary McCraw, CFP®

Vice President

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