The New York State Attorney’s Office reminds student loan borrowers enrolled in the federal SAVE plan (Savings in a Valuable Education Plan) that it will end soon and urged them to look for new payment alternatives that are affordable for them.
SAVE is an affordable, income-based loan repayment plan that the Joe Biden Administration launched in late 2023, following a setback over its first mass student debt forgiveness program in the Supreme Court.
On July 1, SAVE beneficiaries began to be notified about the possibility of choosing a different payment plan within 90 days, after which they will be transferred to another program, probably the standard one, which can be more expensive because it does not take income into account, warned the prosecutor, Letitia James.
“Student loans already represent a considerable burden, and no New Yorker should be forced to accept a costly payment plan that they did not choose. New Yorkers enrolled in SAVE plans should begin searching for an alternative payment plan to anticipate this transition,” the prosecutor said in a statement.
Pursuant to a federal order, the Department of Education placed all SAVE enrollees into mandatory receivership and is moving to end the program.
The Donald Trump Administration announced the measures to end SAVE in December 2025, and since July 1, loan managers have been notifying each borrower of the date on which this mandatory suspension of payments will end.
Previously, at the request of several Republican states, an appeals court blocked the application of SAVE, considering that the Department of Education had exceeded its authority in authorizing the payment plan spending, and the Supreme Court refused to lift that block while its legality was being resolved.
Prosecutor James recalled that her office offers free advice and guidance on your student loan options.
