USA Student Loan SAVE Plan Deadline This Week - 1.2M at Risk
USA Student Loan Crisis: SAVE Plan Borrowers Must Switch by 29 September - Tax on Forgiveness Returns 2026
TODAY 14 September 2026 - Washington DC - US Education Department issues urgent warning to 90-day transition deadline for Saving on a Valuable Education (SAVE) plan borrowers.
September Deadlines You Cannot Miss
- 29 September 2026: Earliest date SAVE borrowers must move to new repayment plan - Standard Repayment or Repayment Assistance Plan (RAP). Auto-enrollment to higher payment if no choice. SAVE borrowers contacted July 1 have 90 days.
- RAP Details: Income-driven 1% to 10% of adjusted gross income or flat $10 if income under $10,000/year, forgiveness after 30 years
- 1 January 2026: For first time in 5 years, forgiven loans taxable as federal income (pandemic tax-free 2021-2025 ends). Exception: borrowers eligible in 2025 but delayed by courts.
PSLF Disaster - Payment Counts Cut
1.2 million public servants (teachers, govt workers, nonprofit) had debt discharged via Public Service Loan Forgiveness avg $75,000. Now Education Dept recalculating histories - borrowers reporting drop from 120 payments to 94 payments due to "coding errors" from Biden era. PSLF Buyback NOT eligible for new RAP plan for future borrowers after July 1, 2026 - new law OBBBA One Big Beautiful Bill Act.
800,000 Getting Relief
Department notifying 800,000 borrowers eligible for discharges Friday - decades of repayment. $1.7 trillion total federal+private student loan debt in USA.
Source: USA Today, Investopedia, Brookings, RocketNews TODAY 14 Sept 2026. Lesson for SA NSFAS: loan accounting errors can cost years.
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