Student-loan borrowers get 30-day ‘final notice’ to choose a new repayment plan

Some student-loan borrowers transitioning off SAVE received a “final notice” giving them 30 more days to choose a new repayment plan. A Department of Education spokesperson confirmed to Business Insider that borrowers who received their initial notice to leave SAVE “on or around July 1” received the additional notice. The department did not specify how many borrowers got it.

The first wave of borrowers had a September 29 deadline after being given a 90-day window to leave SAVE. The new email said borrowers who do not take immediate action will be placed into a repayment plan in 30 days. According to the notice, SAVE borrowers who do not select a new plan could be placed on the standard or tiered repayment plan, described in the article as the most expensive options.

The Department of Education has not publicly announced an extension of the 90-day timeframe. Borrowers who received the latest notice reported confusion, including cases where they had already selected a plan or saw conflicting deadlines in their online portals. Notices to leave SAVE have been issued in waves, and it is unclear whether every borrower will receive a 30-day final notice after their 90-day deadline.

Borrowers should pay close attention to their servicer notices, online account status, and repayment-plan selection deadlines. The article also notes borrower concerns about incorrect bills, account-status errors, and difficulty getting clear information from customer service. Separately, the department recently extended the deadline to enroll in autopay to the end of December, giving borrowers more time to receive a one-percentage-point interest-rate reduction.