SAVE exit FAQ
The questions we see most from exiting SAVE borrowers, answered plainly.
Last reviewed: August 2026
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 if your payment reduces principal by less than $50, the government tops it up to $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.
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.