Student Loan Borrowers Face Critical Deadline as SAVE Plan Transition Hits Technical Glitches
The first wave of student loan borrowers faces a mandatory transition deadline on September 29, 2026, following the Trump administration's termination of the Biden-era SAVE repayment plan. Approximately 7 million Americans must switch to new plans, with 1.5 million having already left SAVE as of September 14. Borrowers are being pushed toward the Repayment Assistance Plan (RAP) or the more expensive Standard Repayment Plan. However, the transition is marked by severe technical failures, including application screens that load indefinitely and incorrect payment counts. Organizers and state ombudsmen are demanding a halt to collections and wage garnishments until the system is stabilized, citing widespread financial distress and health impacts among debtors.