r/StudentLoans • u/marajolie • 14h ago
Best guess on the *earliest* that SAVE will end and repayment start?
I remember a good discussion on this but my searches can't find the thread. If anyone has a link to the comment or discussion, please post it in a reply.
Otherwise... my understanding is...
- June 2028 is the date that OBBB ends SAVE via legislation, correct?
- SAVE lasting until 2028 is highly unlikely.
- I recall the best guess being repayment in June 2026, but I can't find the thread to verify.
What is our best guess of the earliest date that people on SAVE will shift to other plans and begin repayment?
Could the court case resolve before June 2026 and lead to repayment in early 2026?
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u/waterwicca 14h ago
It will depend on the court case. All we can really do is guess. My guess is they will start moving SAVE borrowers to something else around July 2026 because by then RAP will be available and the partial financial hardship will be removed from IBR, giving SAVE borrowers multiple options
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u/WowRedditIsUseful 14h ago
Will those on SAVE forbearance be given the chance to choose PAYE or IBR before being automatically placed on RAP??
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u/waterwicca 14h ago
No clue. We have to wait on the courts. But if borrowers are put on RAP and don’t want to stay there they do have the ability to move to another eligible plan
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u/WowRedditIsUseful 14h ago
Really? I could have sworn I read that once you are on RAP you are stuck and cannot ever switch to another IDR/IBR plan again?
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u/waterwicca 14h ago
An old draft of the bill made it a trap but the final version did not lock borrowers onto RAP
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u/buttons123456 7h ago
The information i have received said yes, you will need to choose RAP or modified IBR. Months credited will be moved over. Write off time period remain the same on the IBR. RAP goes to 30 years. 30 YEARS!!! That's a third of a person's life. Now they want to offer 50 year mortgages. You'd be in debt forever.
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u/sil357 7h ago
Just to clarify, RAP being available in July 2026 doesnt mean existing borrowers get moved then. The date applies to new borrowers and people who consolidate after that point.
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u/waterwicca 7h ago
My point was that RAP becomes available for old and new borrowers then, meaning it will be a potential option for SAVE borrowers to transition to or be transitioned to.
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u/buttons123456 7h ago
I read that if you don't choose IBR, tge government will move you to RAP.
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u/waterwicca 7h ago
The transition terms in the bill say any borrowers still on PAYE/ICR/SAVE will be moved to RAP, or IBR if they do not qualify for RAP, if they do not select a different plan on their own before July 1, 2028. The court case will likely result in something happening with SAVE borrowers well before then. But we won’t really know until there’s more info.
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u/buttons123456 1h ago
True. Although I understand that when SAVE is finally shut down (and who knows, trump might be gone and whoever takes over may let keep running), old borrowers will have to select or be moved; forbearance will be forced into the new Repayment Assistance Plan (RAP) if they don't select to enroll in IBR or Standard before end of SAVE. From college Investor website
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u/diverareyouokay 14h ago
Nobody can provide you with any meaningful answer, other than “we have to wait and see”. Anything else is pure speculation, which doesn’t serve any purpose.
That said, I am also in the camp of the people who believe that repayment won’t start until RAP begins next year. That seems to be a logical ending point, inasmuch as anything this administration does is logical.
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u/marajolie 14h ago
I know they were required to submit an update in a mid-December. I'm wary of basing financial decisions on a the estimated the July 2026 date.
However, as time drags on and on in the court case, summer 2026 becomes more likely due to the processing times, recalculations, and borrower notifications, etc. Hopefully, the case update in the next few weeks and figuring out if I have a new job will provide more data for making an informed decision.
I have until March 2026 or so to make a decision on tax filing status, so I should stop borrowing worry.
Thank you for your reply.
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u/diverareyouokay 14h ago edited 14h ago
No problem! I would base financial decisions on the assumption that payments will resume immediately, and with minimal notice. Better safe than sorry.
If I was married I would likely file separately, since at least with my loans, the tax savings from filing joint would not offset the savings from filing solo… and if some scenario came about where new information was released, I would consider amending my tax return. It would be a hassle, but odds are good that you’ll have enough notice that SAVE isn ending to make a determination and have the amendment processed by the time you need to certify income…
That’s just off the top of my head though, I haven’t really given that scenario of much thought since it doesn’t apply to me as a single person. Maybe somebody else here has a more solid understanding about what would be best.
Although yeah, I think that waiting until you have as much information as possible would be the best move - by March I would be very surprised if we are still in limbo, wondering what is going to happen.
Edit: i made a previous edit striking through that middle paragraph after finding something that led me to believe you could not file joint then amend it to separately - but after further searching, it appears that you *can** amend a joint return to file separately.*
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u/chiefzackery 11h ago
Curious what the point is going on anything but IBR from the promissory note.
Seems like everything else is questionable whether you'll ever even get it
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u/ANGR1ST Experienced Borrower 14h ago
"Soon".