Changes are coming for student loan borrowers with the end of the SAVE plan

Spectrum News aired a story about the end of the federal Saving on a Valuable Education (SAVE) plan and how it might impact millions of student loan borrowers who are now required to select a new repayment plan.

The SAVE plan was created under the Biden Administration and designed to lower monthly payments for borrowers.  A federal appeals court however has blocked implementation of this program.

Everrett Smith, PhD, associate professor, in the UC College of Education, Criminal Justice, Human Services, and Information Technology, spoke with Spectrum News about the plan and offered some advice for borrowers forced to consider new options. Jack Miner, vice provost for enrollment management, also explained what UC is doing to help students on the front end: before they initially take out student loans.

“SAVE really created an opportunity for folks to pay very little,” Smith told Spectrum News. “It was much more affordable because it actually calculated what an individual's income was and what they reasonably could pay.”

Spectrum News reports that borrowers affected by the ruling may now have to choose between other repayment options, including Income-Based Repayment, known as IBR, or the newly created Repayment Assistance Plan, also known as RAP.

Smith urged borrowers to take advantage of the 90-day window once loan servicers begin notifying borrowers of their options. He also said ignoring payment options could have a negative impact on a future credit rating. That could make it harder to some day purchase a car, home or rent an apartment.

“Once those service providers send out their information, most of the time they consider their job done,” Smith told Spectrum News. "And you'll likely have some runway before you start making those payments. So the biggest thing you can do is make sure you take action.”

Miner told Spectrum News that programs like the Bearcat Affordability Grant were created to help provide students with more financial stability as federal student loan policies continue to shift.

UC announced in January the Bearcat Afforability Grant which will provide a pathway to tuition-free college for students of families who make less than $75,000 per year. Beginning in fall 2026, the Bearcats Affordability Grant will cover the remaining cost of tuition for Ohio residents who are Pell eligible.

Miner added that the repayment changes following the SAVE plan's end could also influence future borrowing habits and even college enrollment trends nationwide. He says UC is ahead of that challenge because the university offers students access to financial awareness and feasibility programs designed to help guide them through the process.

“That actually helps you in this case not just think about how you’re borrowing responsibly to pay for college, but it’s also a lesson you’ll carry with you throughout life,” Miner told Spectrum News.

View the full Spectrum News story online.

Learn more about Dr. Everrett Smith, associate professor in CECH, online.

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