It finally happened. The SAVE Plan is dead. On Dec 9th, the US Dept of Education announced that it had settled a case brought to court by the state of Missouri. As part of that settlement, SAVE will end and student loan borrowers will be forced to choose another income driven repayment (IDR) plan……or have one chosen for them by the government. You may be asking yourself, “But yeah Ashley, you told us that a year ago and nothing happened.” And you would be right. But it’s for real now. The SAVE plan is dead. And if you are in it, you need to take action ASAP. So what does that look like? And what happens if you don’t take action? Let’s break it down.

What happens to your loans next?

Over the next couple of months, here is what most borrowers should expect.

  1. You will be required to move off SAVE.

This will not happen overnight, but it will happen. You will either choose a new plan or be defaulted into one.

  2. Monthly payments may increase.

For many borrowers, especially those who were paying very little under SAVE, payments will likely go up under the remaining income-driven plans.

How much depends on income, filing status, and which plan you move to.

3. Interest behavior will change.

SAVE’s generous interest subsidy is gone. That means balances may start growing again if your payment does not cover interest.
This does not mean your plan is broken. It just means the math has changed.

4. Forgiveness timelines may get longer.

SAVE shortened forgiveness for some borrowers. The remaining plans generally require longer repayment periods.

So what repayment plans are left?

In the near term, most borrowers will be looking at some version of Income-Based Repayment (IBR). There is New IBR, which is the most generous IDR plan available but is only open to those who first took out loans the fall semester of 2014 and beyond. There is PAYE, which is like New IBR but only open to borrowers who took out their first loan between 2007 and spring semester of 2014. This plan is set to be phased out before 2028. And finally, there is Old IBR, which is the least generous plan that older borrowers who took out loans pre-fall semester of 2014, have access to.

A newer plan called RAP (Repayment Assistance Plan) is expected in the future, but it is not live yet and will be much less generous than SAVE.

TLDR: the menu is smaller, and the options are not as good as SAVE.

Which is why the plan you choose matters more than ever.

What should you be doing right now?

This is the part I want you to actually read.

Do not ignore this

Loan servicers are not known for proactive, crystal-clear communication. Waiting for perfect instructions is how people end up getting screwed.

Do not assume the cheapest monthly payment is the best choice

Lower payment does not always mean better long-term outcome, especially for high earners or practice owners.

Do not make emotional decisions

SAVE ending feels personal. It is frustrating. Some of you feel betrayed. I get it. But the right move still comes down to math, tax strategy, and your career trajectory. Don’t let emotion get in the way of a good plan.

What a smart plan looks like now

For many veterinarians, the next phase of student loan planning will focus on:

• Choosing the least bad income-driven plan for now
• Coordinating loan strategy with tax filing decisions
• Re-evaluating whether forgiveness still makes sense
• Running updated projections instead of relying on old SAVE assumptions

This is especially important if:

• Your income has increased recently
• You are married or planning to be
• You own or may own a practice
• You were counting on long-term forgiveness

The Facts

Student loan planning just became more important, more individualized, and more strategic than ever before. The people who take time to reassess will be fine. The folks who are on autopilot may not like where they land.

If you are unsure which bucket you are in, that is your sign to slow down and run the numbers. And if the task seems daunting to you, that’s ok. Reach out and schedule an Intro Call meeting with me to discuss your situation. Remember, you don’t have to go it alone. I am here to help!