Student-loan borrowers receive final 30-day extension to choose alternative repayment plan

Confusion continues to mount for student-loan borrowers moving away from a major repayment option. The initial deadline for the first group of borrowers exiting SAVE, a Biden-era income-driven repayment plan, was September 29. Yet some borrowers who failed to choose a new plan during their 90-day window may now have additional time. A Department of Education spokesperson told Themoneytimes that borrowers who got their first notice to exit SAVE “around July 1” have been sent a final 30-day reminder to select a new plan and leave voluntarily, though the exact number of affected borrowers was not disclosed. “This is your FINAL NOTICE,” read an email obtained by Themoneytimes. “If you do not take immediate action to select a repayment plan, we will place you into a repayment plan in 30 days.” The message also warned that borrowers still on SAVE will automatically be moved to the standard or graduated repayment plan—the costliest choices—if they don’t pick a new option within the 30-day window. The department has not announced any formal extension of the original 90-day timeline. Following the Trump administration’s elimination of SAVE, federal loan servicers started notifying borrowers on July 1, giving them 90 days to transition. Those who received the recent final notice report confusion, with some claiming they’ve already chosen a new plan or are seeing conflicting deadlines across their online portals. This comes amid a series of unclear communications borrowers have faced since the Trump-era repayment changes launched on July 1, including new repayment structures. Borrowers have reported incorrect monthly statements, misleading account status alerts, and trouble reaching customer service for clarity. These errors have made it harder for borrowers to manage their budgets, raising fears of missed payments and default consequences such as wage garnishment and the loss of federal benefits. Notices to exit SAVE are being rolled out in phases, and it remains uncertain if all borrowers will get a final 30-day heads-up after their 90-day deadline. The department has also pushed back the autopay enrollment deadline to the end of December, giving borrowers extra time to qualify for a one-percentage-point interest rate discount. Got a story about student loans? Reach out to this reporter at asheffey@businessinsider.com.