As federal student loan borrowers weigh their repayment options in 2026, confusion around the SAVE income-driven repayment plan has grown. Data from the loan servicers is showing backlogs, but the reality is much different for borrowers at this moment. The repayment plan processing backlog is generally overblown and outdated because of applications from last year.
Persistent myths that do not reflect how the system is actually working right now, and what borrowers should be doing. The result is that several widely shared assumptions about leaving the SAVE plan are simply wrong - and it could be costing you money!
Here are three of the most common myths and what borrowers should understand before making a decision.