SAVE Is Gone: Which Repayment Plan Should You Pick?

On March 10, 2026, a federal court order took a large slice out of the July 2023 income-driven repayment rule. The plan most borrowers knew by name, SAVE (the rewrite of REPAYE), lost the formula that made it work. Applications closed, and the borrowers who were counting on it were left looking at a menu that changed overnight. If that is you, the first thing to know is that you still have options. The second is that which option is best now depends almost entirely on two dates: when your loans were first disbursed, and whether you are aiming for Public Service Loan Forgiveness.

What the March 10, 2026 Court Order Actually Did

The order did not erase income-driven repayment. It threw out three specific pieces of the 2023 rule:

• The SAVE/REPAYE payment formula, which had priced payments off a larger income protection and forgiven unpaid interest.
• The SAVE interest subsidy that kept balances from growing for many borrowers.
• The weighted-average payment-count rule for Direct Consolidation, which used to blend your qualifying payments across loans. Consolidating now resets your count instead of averaging it.

For borrowers, the practical result is simple: SAVE is closed. You cannot apply, and if you were on it you need a new plan. The rest of the income-driven family (IBR, PAYE, ICR) and the brand-new Repayment Assistance Plan (RAP) are still on the board, but with new limits that matter a lot depending on your loan date.

The 2026 Federal Plan Lineup

Plan	Who can use it	Payment basis	Poverty allowance	Counts toward PSLF	Sunset
IBR	Older borrowers (loans before 7/1/2026)	10% or 15% of discretionary income	Yes (150% of HHS)	Yes	None
PAYE	Older borrowers only	10% of discretionary income	Yes	Yes	7/1/2028
ICR	Older borrowers only	20% of discretionary income, or the Standard amount	Yes	Yes	7/1/2028
RAP	All borrowers except Parent PLUS	1% to 10% of AGI	No	Yes	None
Standard / Tiered Standard	Everyone	Fixed, based on balance	No	Yes (Standard only)	None

The column that should grab your attention is the last one. PAYE and ICR are open now but close on July 1, 2028. IBR and RAP have no end date. That single fact shapes the advice below.

Start With Your Loan Date

Everything turns on one cutoff: July 1, 2026. Look at your first disbursement date, not your graduation date and not when you started repaying.

• Loans first disbursed before July 1, 2026: you still have the legacy income-driven plans (IBR, PAYE, ICR) plus RAP. This is the group with real choice.
• A loan first disbursed on or after July 1, 2026: IBR, PAYE, and ICR are gone for that whole portfolio. You are limited to RAP or the new Tiered Standard plan.

If you hold both old and new loans, the new disbursement pulls the newer ones out of IBR/PAYE/ICR, so plan around the oldest loans you want to keep on an income-driven track.

If Your Loans Predate July 1, 2026

You have four income-driven paths plus Standard. Here is how they sort out.

IBR: the steady one

Income-Based Repayment is the only legacy plan with no sunset. New borrowers (no balance before 7/1/2014) pay 10% of discretionary income and forgive after 240 payments (20 years). Older borrowers pay 15% and forgive after 300 payments (25 years). The payment is shielded by 150% of the federal poverty guideline, it can never exceed the Standard 10-year amount, and it counts toward PSLF. For most older borrowers who want a low, predictable, permanent income-based payment, IBR is the default recommendation. We cover the 20 vs 25 year split in IBR forgiveness: 20 or 25 years.

PAYE and ICR: useful but temporary

PAYE prices at 10% of discretionary income and is a strong pick if you qualify and your income is low. ICR is the plan Parent PLUS borrowers reach only by consolidating, and it sits at 20% of discretionary income. Both close on July 1, 2028, so they are a fit if you need a lower payment for the next couple of years and expect your situation to change, but they are not a long-term home the way IBR is.

RAP: the new option with a catch

The Repayment Assistance Plan is open to nearly everyone (Parent PLUS excluded) and counts toward PSLF. Its payment runs from 1% to 10% of AGI on a sliding scale, with no poverty allowance. Because there is no 150% shield, RAP is often more expensive than IBR at the same income, especially for single borrowers. The upside is that RAP has no loan-date restriction, so it is the only income-driven choice for borrowers who first borrowed on or after July 1, 2026.

A Worked Example

Take a single borrower, AGI $52,000, a $40,000 balance at 6.5%. For 2026 the poverty shield is $23,940 (150% of $15,960).

• Standard 10-year: about $454 a month. This is the ceiling every income-driven plan is measured against.
• IBR (new borrower, 10%): discretionary income is $52,000 minus $23,940 = $28,060; 10% is $2,806 a year, about $234 a month.
• IBR (older borrower, 15%): about $351 a month.
• RAP: with no poverty allowance, the payment starts from the full $52,000 of AGI and lands in the mid range of the 1% to 10% scale, typically above the IBR figure for a single filer.

The takeaway is that IBR nearly halves the bill versus Standard for this borrower, and the 150% shield is the reason it beats RAP. RAP's lack of that shield is the trade you accept for its open eligibility.

If You Took Out a New Loan On or After July 1, 2026

Your menu is short. IBR, PAYE, and ICR are off the table for that debt. You choose between RAP and the Tiered Standard plan. RAP keeps a payment tied to income and preserves PSLF credit, so for borrowers with low income relative to balance it is usually the better of the two. Tiered Standard is a fixed payment that scales with your original balance and is the floor if you want predictability and do not need an income-based amount. There is no income-driven escape hatch for new loans, so borrow carefully.

Where PSLF Fits

If you work in public service and want forgiveness after 120 qualifying payments, pick a plan that counts. IBR, PAYE, ICR, RAP, and the regular Standard plan all count toward PSLF. The Tiered Standard plan counts too, but it is the 10-year Standard version, not the extended tiered one, so check which you are on. The practical move for public service borrowers with older loans is usually IBR: low payment, PSLF credit, and no 2028 cliff. See how to count your PSLF payments.

Three Mistakes That Cost Borrowers

1. Staying on SAVE out of habit

SAVE is closed, but some borrowers stay in limbo because they never picked a replacement. Servicers eventually move you to a forbearance or Standard, and interest accrues the whole time. Pick a plan on purpose.

2. Assuming PAYE or ICR is a forever home

Both close July 1, 2028. If you sign up expecting to stay, set a reminder now, because the cliff arrives whether you remember it or not.

3. Consolidating without checking the date

Consolidation no longer averages your payment count, it resets it. A Direct Consolidation Loan disbursed on or after July 1, 2026 also counts as a new loan and removes IBR eligibility. If you are close to forgiveness, consolidating can cost you years of progress.

The Bottom Line

SAVE is gone, but income-driven repayment is not. For loans disbursed before July 1, 2026, IBR is the steady, permanent, PSLF-friendly choice, with PAYE and ICR as shorter-term options that close in 2028 and RAP as the flexible alternative. For loans disbursed on or after that date, RAP or Tiered Standard are your only income-driven doors. The deciding inputs are your first disbursement date and your PSLF goal, and the 150% poverty shield is why IBR usually beats RAP on price. Use the calculator below to drop your own numbers in and see the plans side by side.