The confusion grows for student-loan borrowers transitioning off a key repayment plan.
The deadline for the first wave of borrowers to leave SAVE, a Biden-era income-driven repayment plan, was September 29. However, some borrowers who didn’t pick a new plan within their 90-day window might have more time.
A Department of Education spokesperson confirmed to Business Insider that borrowers who received their initial notice to leave SAVE “on or around July 1” have received a final 30-day notice to pick a new plan and leave on their own terms, and did not specify how many borrowers received the notice.
“This is your FINAL NOTICE,” the email, reviewed by Business Insider, said. “If you do not take immediate action to select a repayment plan, we will place you into a repayment plan in 30 days.”
The email added that borrowers currently enrolled in SAVE will be placed on the standard or tiered repayment plan — the most expensive options — if they do not select a new one before the 30-day period ends.
The department has not publicly announced an extension of the 90-day timeframe borrowers have received.
After the Trump administration eliminated SAVE, student-loan servicers began sending notices to borrowers, effective July 1, informing them of a 90-day timeframe to switch to a new plan. Borrowers who received the latest “final notice” expressed confusion, with some saying they had already selected a new plan or are seeing conflicting deadlines on their online portal.
It follows a range of confusing communications that borrowers have received since Trump’s repayment overhaul took effect on July 1, including new repayment plans. Borrowers have reported incorrect monthly bills, erroneous notices on their account statuses, and difficulty getting clear information from customer service.
Borrowers have said those mistakes have made it challenging to budget their finances, and they’re concerned about falling behind on payments and facing the consequences of default, which include wage garnishment and the seizure of federal benefits.
Notices to transition off SAVE have been issued in waves, and it’s unclear whether every borrower will receive a 30-day final notice after their 90-day deadline.
The department also recently extended the deadline to enroll in autopay to the end of December, allowing borrowers more time to receive a one-percentage-point interest rate reduction.
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