The SAVE Plan is ending. The Department of Education announced it will not enroll any new borrowers and will move all SAVE borrowers into other repayment plans. For many, this means payments are about to triple or more.
The Payment Shock
Under SAVE, a family of four earning the median household income of $81,000 paid just $36 per month. Under the new Repayment Assistance Plan (RAP), that same family will pay $440 monthly. A single borrower earning $57,000 goes from $140 to $238.
Tracking the Impact in Beancount
; Student loan tracking with payment comparison
2026-01-01 open Liabilities:StudentLoans:Federal
2026-01-01 open Expenses:Education:LoanInterest
2026-01-01 open Expenses:Education:LoanPrincipal
; Old SAVE payment
2026-01-15 * "Student Loan" "SAVE plan payment"
Liabilities:StudentLoans:Federal 30 USD
Expenses:Education:LoanInterest 6 USD
Assets:Bank:Checking -36 USD
plan: "SAVE"
; New RAP payment (starting July 2026)
2026-07-15 * "Student Loan" "RAP plan payment"
Liabilities:StudentLoans:Federal 350 USD
Expenses:Education:LoanInterest 90 USD
Assets:Bank:Checking -440 USD
plan: "RAP"
payment-increase: "1122%"
Budget Impact Analysis
The $404 monthly increase has to come from somewhere:
SELECT
ROOT(account, 2) as category,
SUM(position) as monthly_avg
WHERE
account ~ "Expenses"
AND date >= 2026-01-01
AND date <= 2026-01-31
GROUP BY category
ORDER BY monthly_avg DESC
Where can you cut $400+?
FIRE Timeline Adjustment
For those pursuing financial independence, this changes everything:
2026-02-01 custom "fire-adjustment" "student-loan-impact"
previous-savings-rate: "35%"
new-savings-rate: "28%"
monthly-savings-reduction: "404 USD"
fire-delay-months: "18"
note: "RAP payment increase pushes FI date from 2032 to 2034"
Questions
- How are you adjusting your budget for the payment increase?
- Are you considering refinancing to private loans?
- Has this changed your FIRE timeline?