Policy Update — March 2026: SAVE Plan Eliminated
The 8th Circuit Court vacated the SAVE plan on March 10, 2026. All SAVE borrowers were moved to Standard Repayment. IBR is now the recommended IDR plan for existing borrowers pursuing PSLF. For loans disbursed after July 1, 2026, only RAP is available. See what to do now →
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SAVE Plan Calculator for Doctors
The SAVE plan was eliminated in March 2026. This page is preserved as a historical reference. For current planning, IBR is the recommended IDR plan for PSLF-track physicians. Use our main calculator to model IBR, RAP, and refinancing with your actual numbers.
Model IBR for my situation →What makes SAVE different for physicians
SAVE replaced REPAYE in 2023. It has two features that directly benefit medical residents and fellows above all other IDR plans:
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5% rate on graduate loans
IBR and PAYE charge 10% of discretionary income. SAVE charges 5% for graduate loan debt. During a 3-year residency on $70K salary, this cuts your monthly payment from ~$475 to ~$238.
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100% interest subsidy
If your monthly SAVE payment doesn't cover all accruing interest, the government covers the rest. Your balance won't grow during residency the way it does on IBR — a key psychological and financial win.
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PSLF eligible
SAVE payments qualify toward PSLF. For primary care physicians at nonprofit hospitals, combining SAVE's low resident payments with PSLF forgiveness is typically the most powerful strategy available.
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Broader eligibility
Unlike PAYE, SAVE is available to all Direct Loan borrowers regardless of when loans were taken out. Current medical students are universally eligible.
SAVE payment examples by training stage
Single filer, all graduate loans, standard deductions. Actual payments depend on exact AGI and household size.
PGY-1 Resident
Salary: $68,166 · Debt: $250,000
5% of discretionary income on grad loans
PGY-3 Resident
Salary: $73,301 · Debt: $265,000
Balance growing ~$900/mo despite payments
First-year attending (IM)
Salary: $270,000 · Debt: $295,000
SAVE covers unpaid interest above this
First-year attending (Surgery)
Salary: $430,000 · Debt: $310,000
At this level, refinancing likely wins
SAVE vs PAYE vs IBR
For most current medical students, SAVE wins on payment and interest protection. PAYE has a cap advantage for very high earners.
| FEATURE | SAVE | PAYE |
|---|---|---|
| Payment rate (grad loans) | 10% discretionary | 10% discretionary |
| Payment rate (undergrad loans) | 5% discretionary | 10% discretionary |
| Interest subsidy | Government covers 100% of unpaid interest | No interest subsidy |
| Payment cap | No cap (exceeds standard for high earners) | Capped at standard 10-yr amount |
| Forgiveness timeline (no undergrad) | 20 years | 20 years |
| PSLF eligible | Yes | Yes |
| Eligibility | All federal Direct Loan borrowers | New borrowers after Oct 2007 only |
SAVE plan FAQ for physicians
SAVE was eliminated — what should I enroll in instead?
IBR (Income-Based Repayment) is now the recommended IDR plan for most residents. The 8th Circuit vacated SAVE on March 10, 2026, and all SAVE borrowers were moved to Standard Repayment. Switch to IBR as soon as possible through your servicer or StudentAid.gov — IBR payments qualify for PSLF and cap at 10% of discretionary income during residency.
Was the SAVE plan eliminated?
Yes. The 8th Circuit Court of Appeals vacated the SAVE plan on March 10, 2026. Borrowers in SAVE were auto-moved to Standard Repayment. New SAVE enrollments are no longer accepted. IBR is the replacement plan for existing borrowers. For loans disbursed after July 1, 2026, the new RAP plan is required.
Does SAVE's interest subsidy apply during residency?
Yes. If your SAVE payment is $238/month but $800/month in interest is accruing, the government covers the $562 difference. Your balance holds steady rather than growing by $6,700+ per year — one of SAVE's most valuable features for residents with large loan balances.
Can SAVE hurt me as a high-earning attending?
Potentially. SAVE has no payment cap, unlike PAYE and IBR. For very high earners (surgeons, proceduralists), the uncapped percentage-of-income calculation could push your payment above the standard 10-year amount. At that point, refinancing or aggressive payoff are usually better strategies.