If you or a family member carry federal student loans, important changes are currently underway that require immediate attention. Following the court-ordered end of the SAVE Plan, federal student loan servicers began issuing notices instructing borrowers to choose a new repayment plan within a 90-day transition window.
For many borrowers, these deadlines are arriving quickly. Here is what farm families need to know to protect their cash flow and financial eligibility.
The 90-Day Rule: Don’t Let Inaction Cost You
Borrowers who were previously enrolled in the SAVE Plan must select an eligible repayment plan before their personalized 90-day window expires.
What happens if you miss the deadline?
If you do not take action, your servicer will automatically move your loan into the Tiered Standard Plan. Unlike income-driven options, the Tiered Standard Plan bases monthly payments on your total loan balance over a fixed timeline—not on your income. For many households, this can cause monthly student loan payments to spike significantly.
Key Rules to Keep in Mind
- Pre-July 2026 Loans (Legacy Borrowers): If your loans were disbursed before July 1, 2026, you can generally switch to Income-Based Repayment (IBR). IBR keeps your monthly payment tied to your Adjusted Gross Income (AGI) and maintains a 20- to 25-year path to loan forgiveness.
- Beware the “New Loan” Trigger: Under new federal legislation, taking out a new federal loan forces all of a borrower’s existing pre-2026 loans into the new repayment system (such as the Repayment Assistance Plan, which carries a 30-year forgiveness timeline). Evaluate new borrowing carefully.
- Protect FSA & USDA Credit Access: Falling behind on student loan payments or sliding into default can impact your credit report and trigger federal database flags. This can jeopardize your family’s eligibility for USDA Farm Service Agency (FSA) operating and ownership loans.
Action Steps for Your Household
- Log In to StudentAid.gov: Check your primary email and loan servicer portal (e.g., MOHELA, Nelnet, Aidvantage) to confirm your exact 90-day deadline.
- Review Your AGI Strategy: Income-driven plans rely on your tax return. Work with your accountant to understand how Schedule F adjustments and farm depreciation affect your student loan calculations.
- Select a Plan Promptly: Apply for an income-driven plan like IBR well before your 90 days are up to ensure a smooth transition without payment spikes.
For personalized guidance, log into your account at StudentAid.gov or contact your loan servicer directly.