SAVE Plan ends, giving borrowers 90 days to pick new way to repay

NEW YORK (CBS, KYMA) - Some big changes are coming to the federal student loan system, beginning Wednesday.

The Department of Education is sending notices to millions of federal loan borrowers enrolled in the Biden era SAVE Repayment Plan.

The program is being eliminated under the Trump Administration and borrowers now have 90 days to pick a new way to repay.

CBS News Business Analyst Jill Schlesinger explains some of the options.

"You could have a plan that is an income-based repayment plan. Usually this will be you pay 10% of whatever you're making for 20 years," Schlesinger explained. "The there's a brand new plan. It is called the Repayment Assistance Plan...the RACK Plan."

"This is a little different...you will pay a smaller amount of money...one to 10% for up to 30 years, and if you've paid, they will be forgiven," Schlesinger added.

Those who do not pick a plan, will automatically be enrolled in the standard plan which usually results in a higher monthly amount.

Borrowers should head to StudentAid.gov to help determine what works best for their budget.