The federal SAVE student loan repayment plan, which calculated monthly payments based on a borrower’s income and family size, ended July 1, 2026, and people currently enrolled have 90 days to switch to a different plan before their loan servicer automatically moves them to the Standard Repayment Plan, according to a DCWP advisory published by Harlem World Magazine. The Standard Repayment Plan requires fixed monthly payments that do not adjust to income and may be higher than what borrowers are currently paying.
New York City’s Department of Consumer and Worker Protection issued the advisory as the changes took effect, warning that borrowers on income-driven plans and those pursuing Public Service Loan Forgiveness face financial risk if they do not act during the 90-day window.
The SAVE Plan, formally called the Saving on a Valuable Education Plan, is being replaced by a new income-driven option called the Repayment Assistance Plan, or RAP. Like SAVE, RAP bases payments on income and family size. Other existing income-driven repayment plans remain available as well. The danger for current SAVE borrowers is inaction: anyone who does not choose a new plan within 90 days gets automatically moved to the Standard Plan, where the payment amount is fixed regardless of what they earn.
For borrowers working toward Public Service Loan Forgiveness, the change also affects forgiveness eligibility. DCWP’s advisory states that SAVE Plan borrowers pursuing PSLF must switch to a different income-driven plan to remain eligible for forgiveness. Staying enrolled in SAVE does not count toward the program’s qualifying payment requirements.
The city is directing affected borrowers to its Financial Empowerment Centers, which offer free, one-on-one counseling in person, by phone, or virtually. The centers serve all New Yorkers 18 and older regardless of income or immigration status, and according to DCWP they have helped reduce New Yorkers’ debt by more than $126 million and increase savings by more than $14 million. Counselors can help borrowers understand how the changes affect them specifically, compare available repayment plans, enroll in or stay on track for forgiveness programs, and build a plan to manage student debt alongside other financial obligations.
“Governing by caprice and chaos is no way to lead, especially when so many working people are struggling to make ends meet,” DCWP Commissioner Samuel A.A. Levine said in the advisory, adding that New York City is “providing clarity” and “treating our affordability crisis with the seriousness it deserves.”
DCWP says 25 percent of New Yorkers are experiencing strain from student loan debt. Borrowers can schedule a free Financial Empowerment Center appointment and find more information about the repayment changes at nyc.gov/studentloans.
