The landscape of federal student loans is completely changing. With the SAVE Plan officially eliminated, the upcoming July 1 rule changes mean Public Service Loan Forgiveness (PSLF) borrowers have to move quickly to keep their months counting toward the 120-payment goal.
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The 90-Day Clock is Ticking for SAVE Borrowers
If you were enrolled in the SAVE plan, you have a strict 90-day window to pick a new repayment plan.
If you miss this deadline, your loan servicer will automatically place you into a fixed Standard or Tiered Standard Plan. Neither of these plans qualifies for PSLF. Any payment you make under them will be completely wasted time.
What to do right now:
- Switch to an Eligible Plan: Log into StudentAid.gov/idr and choose a qualifying Income-Driven Repayment (IDR) plan.
- Your Best Long-Term Options: The brand-new Repayment Assistance Plan (RAP) or the classic Income-Based Repayment (IBR) plan.
- Note on PAYE/ICR: While existing borrowers can use PAYE or ICR for now, both plans are being completely phased out by July 1, 2028.
- Reclaim Lost Months via “Buyback”: The months you spent in administrative forbearance while the SAVE plan was tied up in court do not automatically count toward your 120 payments. However, you can use the PSLF Buyback Program to “purchase” those months back once you reach your 10-year employment mark, keeping your original forgiveness timeline intact.
Quick Reference: What Counts for PSLF in 2026?
| Repayment Plan | Counts for PSLF? | What You Need to Know |
| Repayment Assistance Plan (RAP) | YES | The new standard. Required for all new loans taken out after July 1. |
| Income-Based Repayment (IBR) | YES | Safe legacy option. Will be the only pre-2026 IDR plan left standing after 2028. |
| PAYE / ICR Plans | YES (Temporary) | Only available to existing borrowers, and must transition off them by July 1, 2028. |
| Tiered Standard Plan | NO | Does not qualify for PSLF under any circumstances. |
Two Major Structural Changes to Watch
1. The Employer Eligibility Crackdown
The Department of Education now excludes organizations deemed to have a “substantial illegal purpose” (such as violating immigration laws or child trafficking). While ongoing lawsuits are challenging this administration rule, the Education Secretary currently holds the power to disqualify employers.
- The Risk: If your employer is flagged, future payments stop counting.
- The Shield: Use the PSLF Employer Search tool on StudentAid.gov annually to ensure your workplace remains certified.
2. Parent PLUS Loans Locked Out
The door has officially closed for parent borrowers. Direct PLUS loans for parents disbursed after July 1 are completely ineligible for PSLF and are restricted to the non-qualifying Tiered Standard Plan.
Pro-Tip: Grab the 2026 Auto-Pay Discount
The Department of Education is offering a 1% interest rate reduction for all federal student loan borrowers who enroll in auto-pay by September 30, 2026.
When you transition to your new RAP or IBR plan, make sure auto-pay is active. It ensures you never accidentally skip a month of PSLF credit while keeping your accumulating interest as low as possible.
If you don’t actively choose a new repayment plan within 90 days of receiving your notice, your loan servicer will automatically place you into either the standard 10-year plan or the new Tiered Standard Plan.
Because neither the Tiered Standard Plan nor the Standard Plan (if your loan is consolidated onto a longer timeline) qualifies for PSLF, any automatic payments you make under them will not count toward your 120 required payments. To keep your forgiveness timeline on track, log into StudentAid.gov/idr right away and select an eligible Income-Driven Repayment (IDR) plan like IBR or the new Repayment Assistance Plan (RAP).
The administrative forbearance months while the SAVE plan was stalled in court do not naturally count toward your PSLF progression. However, you can “buy back” these missing months once you have reached a total of 120 months of qualifying public service employment.
To execute a buyback, submit your standard Employment Certification Form (ECF) to prove you were working full-time for an eligible nonprofit or government employer during those specific forbearance months. Once approved, you can submit a Buyback request via StudentAid.gov. The Department of Education will calculate what you would have paid during those months under an eligible IDR plan, and once you make that lump-sum payment within 90 days, those months will permanently convert to qualifying PSLF credits.
No, you do not have to switch immediately. Existing borrowers are legally allowed to stay on PAYE or ICR for now, and these payments will continue to count perfectly toward your PSLF credits.
However, you must circle July 1, 2028, on your calendar. This is the hard sunset date when PAYE and ICR will be completely phased out. If you have not reached your 120 payments by the summer of 2028, you will be required to transition into either the Income-Based Repayment (IBR) plan or the new Repayment Assistance Plan (RAP) to keep earning PSLF credit.
Editing by katie willimas
