Updated
Updated · Forbes · Jul 8
Nelnet Says Some SAVE Borrowers Can Wait Until July 2027 to Switch Plans
Updated
Updated · Forbes · Jul 8

Nelnet Says Some SAVE Borrowers Can Wait Until July 2027 to Switch Plans

3 articles · Updated · Forbes · Jul 8

Summary

  • Nearly 3 million Nelnet borrowers may not get their 90-day SAVE exit notice until March 2027, giving some until July 2027 to choose a new repayment plan.
  • Nelnet said notices are being sent in waves from July 2026 through March 2027, a longer runway than borrowers had inferred from Education Department guidance and advocacy alerts pointing to roughly September 2026.
  • 90 days after each notice, borrowers must pick another income-driven plan or risk automatic placement into a Standard plan, which could raise monthly payments and halt progress toward loan forgiveness.
  • The shifting timeline follows court orders and a settlement that effectively killed the Biden-era SAVE plan early, while borrower advocates say the department's urgent messaging overstated how quickly some borrowers had to act.

Insights

With loan forgiveness now 30 years away, how can borrowers find the cheapest long-term path out of student debt?
As millions switch loan plans, can the system handle this change without costly errors and widespread defaults?
With new federal loan caps and the Grad PLUS program gone, is graduate school becoming unaffordable for future students?