SAVE exit FAQ

The questions we see most from exiting SAVE borrowers, answered plainly.

Last reviewed: August 2026 (corrected 8 Aug: IBR is not being eliminated)

What happens if I ignore my 90-day notice?

You're auto-enrolled in a Standard-family plan. Payment set by your balance, not your income; no forgiveness clock. A $60k balance at 6% ≈ $666/month. For anyone with modest income this is the worst outcome, and it's entirely avoidable — the IDR application takes about ten minutes on StudentAid.gov.

Did my time in SAVE forbearance count toward forgiveness or PSLF?

For most borrowers, no. The litigation forbearance (mid-2024 onward) didn't earn credit. This stings if you were close to a forgiveness milestone — and it's exactly why your qualifying-payment count on StudentAid.gov is the first thing to check before choosing between IBR's 20/25-year clock and RAP's 30-year clock.

Is forgiveness taxable now?

Two different regimes: PSLF forgiveness is tax-free, period. Long-term IDR forgiveness was federally tax-free only through the end of 2025 (an American Rescue Plan provision that expired). Under current law, IDR balances forgiven in 2026 or later may count as taxable income federally, and a handful of states tax it regardless. Laws can change again in 20–30 years — but plan for the tax bill, don't assume it away.

Can I keep my spouse's income out of the calculation?

Yes on both plans, by filing taxes separately. The trade-off is real: married-filing-separately usually costs you credits and deductions. Run your payment both ways in the calculator, then weigh the annual payment savings against what your tax preparer says filing separately costs you.

Which plan is better for PSLF?

Whichever is cheaper monthly — both qualify. PSLF forgives after 120 qualifying payments regardless of plan, tax-free. Minimizing your payment maximizes what's forgiven. Note the Standard 10-year plan technically qualifies for PSLF but would leave a balance of $0 at month 120 — pointless.

Can my balance still grow?

RAP: no. Unpaid interest is waived monthly, and the government tops up your principal reduction so the balance falls by at least the lesser of your payment and $50 — note the cap at your own payment, so a $10 payment reduces principal by $10, not $50. Your balance falls every single month. IBR: yes, if your payment doesn't cover interest, the difference accrues. For borrowers with low income and big balances this is the strongest argument for RAP despite its longer forgiveness timeline.

Does RAP have a $0 payment?

No — the floor is $10/month for everyone. IBR can still be $0 if your AGI is under 150% of the poverty guideline ($23,940 for a single person in 2026). Those $10 RAP payments do count toward forgiveness and PSLF.

If I pick RAP, can I switch back to IBR later?

You can switch — but not without cost, and not forever. Two rules govern this:

• Payment counts only travel one way. Months you earned under IBR carry into RAP. Months you pay under RAP do not count toward IBR's 20- or 25-year clock if you switch back. Three years on RAP is three years IBR won't credit you for.
• IBR is not going away — that claim circulates widely and it's wrong. Congress protected IBR. If all your Direct Loans predate July 1, 2026, you keep access to it for the life of those loans and can move between IBR and RAP as your situation changes. What ends is ICR, PAYE and SAVE, eliminated by July 1, 2028 (PAYE also closes to new enrollment on July 1, 2027). The one action that forfeits your IBR access is taking out a new Direct Loan on or after July 1, 2026 — new borrowing puts you on RAP.

Practical takeaway: IBR is the reversible choice and RAP is the sticky one. If you're genuinely undecided, that asymmetry is a real argument for starting on IBR. See the full comparison.

I heard IBR forgiveness is paused. Is that true?

Not anymore — this is outdated information that still circulates widely. The Department did pause IBR discharges in mid-2025 while it rebuilt payment-count systems after the SAVE litigation. Discharges resumed in September 2025, and in October 2025 a court-supervised agreement with the American Federation of Teachers locked that restart in place: forgiveness under IBR, ICR and PAYE must continue, and the Department files public progress reports on it.

Two practical points. Discharges are processed in batches, so the paperwork can lag. But your discharge is dated to the day you earned it, not the day it clears — and if you made payments after your eligibility date, those get refunded. Keep paying until your servicer confirms the discharge, then check that the effective date is right.

What about Parent PLUS loans?

Parent PLUS isn't directly eligible for RAP or IBR, and the consolidation workarounds narrowed sharply after July 2026. If you hold Parent PLUS loans, this site's calculator doesn't cover your case — talk to your servicer or a nonprofit counselor (see below) before your window closes.

Where can I get actual one-on-one help?

Free and legitimate: your loan servicer (start early, hold times are long), the StudentAid.gov Loan Simulator, and nonprofit resources like The Institute of Student Loan Advisors (TISLA). Be wary of anyone charging upfront fees to "enroll you" in a federal plan — enrollment is free, always.