The SAVE plan is over, and the first deadlines to pick a new student loan repayment plan passed at the end of October. Borrowers who were moved off SAVE had a 90-day window (extended by 30 days) from the date of their notice, and anyone who does not choose may be placed on a plan their servicer picks. For many households the likely landing spot, the new Repayment Assistance Plan (RAP), means a bill that jumps from $0 to somewhere between $60 and $600 a month. Below, we calculate it for four typical households.
The figures above come from the US Education Department (via Business Insider, October 27, 2026) and the official RAP rules published on StudentAid.gov servicer pages. Every calculation below is for the United States, uses the published RAP income bands, and is rounded to the nearest dollar.
What happened, and what the deadline actually is
A court order ended the SAVE plan on March 10, 2026. From July 1, servicers began sending notices to SAVE borrowers, and Edfinancial says notices go out between July 1 and August 15. Each borrower gets 90 days from the date of their own notice to choose a different plan, and that window was extended by 30 days.
That means there is no single national deadline. In our own date math, a notice dated July 1 plus 120 days lands on October 29, 2026; a notice dated August 15 plus 120 days lands on December 13, 2026. Your letter is the only date that counts, so find it before you do anything else.
- If you choose: you move to the plan you picked (RAP, IBR, PAYE, ICR or the Tiered Standard Plan, depending on your loans).
- If you don't: you may be placed on a plan chosen by your servicer, which reporting says is usually a standard or tiered plan, often the most expensive option.
- Loans disbursed on or after July 1, 2026 can only use the Tiered Standard Plan or RAP.
How RAP works, in one table
RAP is not based on "discretionary income" like SAVE or IBR. It takes a percentage of your whole adjusted gross income (AGI), set by income band, then subtracts $50 a month for each dependent. The minimum is $10 a month.
| Your AGI | Share of AGI per year |
|---|---|
| Up to $10,000 | $120 a year flat |
| $10,001–$20,000 | 1% |
| $20,001–$30,000 | 2% |
| $30,001–$40,000 | 3% |
| $40,001–$50,000 | 4% |
| $50,001–$60,000 | 5% |
| $60,001–$70,000 | 6% |
| $70,001–$80,000 | 7% |
| $80,001–$90,000 | 8% |
| $90,001–$100,000 | 9% |
| Over $100,000 | 10% |
Source: RAP rules published by Edfinancial on StudentAid.gov. Your annual amount is divided by 12, then reduced by $50 per dependent; the minimum payment is $10.
Two features help: if your payment is less than the month's interest, the unpaid interest is covered, and if your on-time payment does not cut your principal by at least $50, the Education Department adds a matching principal payment of up to $50. Any balance left after 30 years (360 qualifying payments) is forgiven, although forgiven amounts may be taxable.
Four households: SAVE vs RAP, calculated
These are illustrative examples with undergraduate loans only. For SAVE we used its formula of 5% of income above 225% of the poverty guideline, with the 2026 HHS guidelines for the 48 contiguous states ($15,960 for one person, $27,320 for three, $33,000 for four). Your real SAVE figure depended on the guideline year used when you certified.
| Household | AGI | Old SAVE | New RAP | Extra per year |
|---|---|---|---|---|
| Single, no kids | $35,000 | $0 | $88 | +$1,050 |
| Single mom, 2 kids | $48,000 | $0 | $60 | +$720 |
| Single, no kids | $62,000 | $109 | $310 | +$2,416 |
| Married filing jointly, 2 kids | $95,000 | $86 | $613 | +$6,312 |
Illustrative examples, monthly payments rounded. RAP = AGI × band % ÷ 12 − $50 per dependent. Our calculations, November 9, 2026.
Look at the last row. Because RAP applies the band percentage to the whole income, a married couple filing jointly at $95,000 goes from roughly $86 to about $613 a month. That is $6,312 more a year, about the cost of a small car payment, arriving in a year when prices are still rising.
The shock isn't the loan. It's a new $300 or $600 bill landing on a budget that was built around $0.
The tool for this moment
If your student loan payment is about to restart or jump, the risk isn't one bad month. It's the slow squeeze on groceries, childcare and savings while you figure out where the new money comes from.
The Matriarch Money Dashboard (Google Sheets & Excel)
- Add the new loan payment as a fixed bill and see instantly what is left for everything else
- Spot the two or three categories that can absorb $100–$600 a month without guesswork
- Track your income, bills and savings goals in one place, month by month
A 100% digital Google Sheets and Excel file. Nothing is shipped, there are no shipping fees, and you can download it right after purchase. Print it, or use it on your phone, tablet or computer. One-time purchase.
See what's inside →Does this affect me? A quick decision table
| Your situation | What it likely means | First step |
|---|---|---|
| You were on SAVE and got a notice | Your 120-day window runs from your notice date | Find the date on the notice; log in to StudentAid.gov |
| Your deadline already passed | You may be placed on a plan by your servicer, but other plans are still available | Call your servicer and ask which plan you are on now |
| You have Parent PLUS loans | RAP is not available for Parent PLUS or consolidations that include them | Ask your servicer about ICR or the Tiered Standard Plan |
| You are working toward PSLF | PSLF borrowers may qualify for forgiveness after 10 years | Check that your new plan counts for PSLF before switching |
| Your income dropped this year | RAP and IBR are recalculated from income | Recertify with your latest income, not last year's |
Your 7-step checklist this week
- Find your notice and the date on it, then add 120 days to get your likely deadline.
- Log in to StudentAID.gov to confirm your loan types and your servicer.
- Run the official Loan Simulator / repayment calculator with your loan type, balance, tax filing status and income.
- Compare RAP with IBR: for some incomes they are close (in our examples, within a few dollars), for others they differ by hundreds.
- If you file jointly, ask whether filing separately changes your payment. A tax professional can tell you if it costs more in tax than it saves.
- Choose a plan before your deadline and save the confirmation.
- Put the new payment in your budget now, even if the first bill is weeks away.
Missing payments has real consequences: Federal Student Aid data cited by reporters shows 9.3 million borrowers in default, and default can lead to wage garnishment and offsets of federal benefits, including Social Security. If the numbers feel overwhelming, the CFPB's student loan help is a free, official place to start.
Keep reading
Quick answers
What happens if I miss the SAVE plan deadline?
You may be placed on a repayment plan chosen by your servicer, often a standard or tiered plan with higher payments. Other plans remain available, so contact your servicer and apply for the plan you want.
How is the RAP payment calculated?
Take 1% to 10% of your adjusted gross income depending on your income band, divide by 12, then subtract $50 for each dependent. The minimum payment is $10 a month.
Is RAP cheaper than IBR?
It depends on income and family size. In our illustrative examples the two were within a few dollars at $35,000–$62,000 for a single borrower, but RAP was far higher for a married couple at $95,000. Use the official calculator on StudentAid.gov.
If money worry is keeping you up at night, the free 7-Day Money Anxiety Reset journal is a gentle place to start.
Sources
- Edfinancial (StudentAid.gov): Repayment Assistance Plan rules
- Edfinancial (StudentAid.gov): Lower payment options and SAVE transition
- HHS ASPE: 2026 Poverty Guidelines
- Texas Public Radio, Nov 7, 2026: Student loan repayment deadlines are here
- Business Insider via Yahoo News, Oct 27, 2026: First deadline for SAVE borrowers
- CFPB: Student loans
Educational content only. Not personalised financial advice.