The Trump administration has confirmed the earliest date by which millions of student loan borrowers will have to begin changing their repayment plans.
In a white paper Thursday, the Department of Education said borrowers will not be required to cancel the SAVE plan “no earlier than September 29.”
Additionally, the department said that as it phases borrowers out of the plan, most borrowers will “get even more time.”
The department previously said that starting July 1, borrowers will begin receiving notices about the 90-day deadline to switch to a new plan and that if they do not take action, they will automatically be transferred to the most expensive plan.
The update is a response to a lawsuit filed in March that challenged the department’s decision to cancel SAVE, a Biden-era plan that gave borrowers more affordable monthly payments and shorter debt repayment terms.
The public benefit practice, which represents borrowers in the suit, filed a motion Tuesday urging the court to pause this forced switch to a more expensive plan while the court decides the rest of the case.
The new legal filing comes just days before Trump’s proposed sweeping overhaul of student loan repayments takes effect July 1, with new repayment plans and borrowing limits. Borrowers said they expected their monthly payments to increase under the new plans, and some reported disruptions to their accounts, including inaccurate payment forecasts.
Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.comor fill out this form.