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Your Student Loan Clock Starts July 1. Here's Exactly What to Do Before It Does.
This episode of Coin Flip breaks down what 7.5 million student loan borrowers enrolled in the SAVE plan need to do before the roughly September 30, 2026 deadline. The SAVE plan was struck down by a federal court in March 2026, and anyone who misses the window to switch plans will be automatically moved to Standard Repayment, which carries the highest monthly payments of any available option.
Host Derek Wu walks through the three repayment plans now available to SAVE borrowers, explains how each one calculates monthly payments differently, and provides a practical decision framework to help listeners identify the right fit based on their income, family size, and forgiveness timeline. He also covers a separate hard deadline that Parent PLUS loan holders cannot afford to miss.
- RAP (Repayment Assistance Plan) launches July 1 and uses a sliding income-based formula, with built-in interest cancellation and a $50 monthly principal match guarantee.
- IBR (Income-Based Repayment) is the primary alternative for most existing SAVE borrowers, with a July 2028 enrollment deadline and a broader definition of family size that can lower payments for some households.
- Tiered Standard Plan may result in lower total repayment costs for borrowers who can handle fixed monthly payments and are not pursuing forgiveness.
- The IDR application backlog exceeded 576,000 requests as of February 2026, meaning borrowers who act now are more likely to be processed before the deadline than those who wait.
- Parent PLUS loan holders face a July 1 consolidation deadline, after which they permanently lose access to income-driven repayment options.
If you have questions about a financial decision you are facing, leave a note in the reviews. Subscribe to Coin Flip so you have the information you need before the next deadline arrives.
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By Coin FlipThis episode of Coin Flip breaks down what 7.5 million student loan borrowers enrolled in the SAVE plan need to do before the roughly September 30, 2026 deadline. The SAVE plan was struck down by a federal court in March 2026, and anyone who misses the window to switch plans will be automatically moved to Standard Repayment, which carries the highest monthly payments of any available option.
Host Derek Wu walks through the three repayment plans now available to SAVE borrowers, explains how each one calculates monthly payments differently, and provides a practical decision framework to help listeners identify the right fit based on their income, family size, and forgiveness timeline. He also covers a separate hard deadline that Parent PLUS loan holders cannot afford to miss.
- RAP (Repayment Assistance Plan) launches July 1 and uses a sliding income-based formula, with built-in interest cancellation and a $50 monthly principal match guarantee.
- IBR (Income-Based Repayment) is the primary alternative for most existing SAVE borrowers, with a July 2028 enrollment deadline and a broader definition of family size that can lower payments for some households.
- Tiered Standard Plan may result in lower total repayment costs for borrowers who can handle fixed monthly payments and are not pursuing forgiveness.
- The IDR application backlog exceeded 576,000 requests as of February 2026, meaning borrowers who act now are more likely to be processed before the deadline than those who wait.
- Parent PLUS loan holders face a July 1 consolidation deadline, after which they permanently lose access to income-driven repayment options.
If you have questions about a financial decision you are facing, leave a note in the reviews. Subscribe to Coin Flip so you have the information you need before the next deadline arrives.