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Starting July 1, borrowers currently enrolled in the SAVE Plan have 90 days to switch to a different repayment plan.
In December 2025, the White House announced the end of the Saving on a Valuable Education (SAVE) Plan with curious language. “The Trump Administration is righting this wrong and bringing an end to this deceptive scheme,” reads a stuffy U.S. Department of Education press release. President Donald Trump took a more caustic approach, describing the Biden-era student debt forgiveness program—in which nearly 375,000 New Yorkers are enrolled—as a “vile attack.”
As commissioner of the Department of Consumer and Worker Protection (DCWP), I know a “deceptive scheme” when I see one—and this isn’t it. Student loan assistance is sorely needed; in New York City alone, one in four residents experiences financial strain from student loan debt. Delinquency rates are already climbing, with about 11 percent of borrowers behind on payments earlier this year.
But the reality is that the SAVE Plan is being dismantled, following lengthy litigation. And now, with additional alterations under the One Big Beautiful Bill Act (OBBBA), millions of Americans are bracing for sweeping changes to the federal student loan system—not to mention the abundant confusion and financial instability that comes with it. In 2026, the federal student loan repayment system will look dramatically different.
Now, more than ever, New York City student loan borrowers need trusted, accessible guidance to navigate what comes next. That is exactly where DCWP’s free Financial Empowerment Centers come in.
At more than 40 sites across the five boroughs, New Yorkers can access one-on-one professional financial counseling for student loan repayment simply by visiting nyc.gov/Talkmoney and making an appointment. Counselors assist borrowers in reviewing repayment and forgiveness options, understanding the federal changes, assisting with required paperwork and connecting people with trusted legal resources when needed.
These services are especially critical as SAVE, an Income-Driven Repayment (IDR) plan, phases out and borrowers are required to make time-sensitive decisions about their repayment strategy. Starting July 1, borrowers currently enrolled in the SAVE Plan will have 90 days to determine which repayment plan is most affordable for them and switch to a different plan. Borrowers who do not enroll within this 90-day window will be automatically placed into the Standard Plan or the new Tiered Standard Repayment Plan, which generally have higher payments than IDR plans.
New York City public servants pursuing Public Service Loan Forgiveness (PSLF) may particularly need guidance. Current SAVE borrowers working toward PSLF must switch to another IDR plan to remain eligible for this critical forgiveness (the average amount of PSLF forgiveness for NYS residents is about $61,000); failing to do so could jeopardize years of progress.
The federal government is also introducing a new Repayment Assistance Plan (RAP) on July 1. Borrowers who take out a new federal student loan on or after that date will only have access to RAP and a new Tiered Standard Repayment Plan for all of their federal loans, including those borrowed before July 1, 2026. Existing borrowers may opt into these plans but will not be required to do so.
Under RAP, payments are based on adjusted gross income rather than discretionary income, which could mean higher monthly payments for many borrowers, particularly in high-cost cities like New York. The plan also extends forgiveness timelines for some borrowers to as long as 30 years and may leave borrowers responsible for taxes on forgiven balances.
These changes represent a major overhaul of the student loan repayment system. After years of payment pauses and ongoing litigation surrounding the SAVE Plan, many borrowers may be unaware that they need to take action to maintain affordable payments or protect their path to forgiveness. Without guidance, borrowers risk higher costs, increased delinquency, depleted savings, and greater long-term financial strain.
That is why the city’s free financial counseling resources are so critical. Any borrower with questions about their student loans can make an appointment at a Financial Empowerment Center and receive clear, trustworthy guidance to understand their options, transition into affordable repayment plans, and protect the progress they have already made.
In a moment when Washington is rolling back consumer protections and jacking up the cost of living, New York City is stepping up to close the gap and make a tangible difference in the lives of everyday people.
Student loan repayment should be a pathway to stability, not a maze of uncertainty. With DCWP’s help, borrowers can move through these changes not with complacency, but with confidence and long-term financial security.
Samuel A.A. Levine is the commissioner of the NYC Department of Consumer and Worker Protection.