Your 30-Day Student Loan Game Plan for 2026

What to Do in the Next 30 Days

Borrowers are entering 2026 facing three major pressures at the same time:

1. Uncertainty around SAVE and forced repayment plan changes

2. The return of collections enforcement for borrowers in default

3. Tax season consequences for anyone in default or nearing default

Together, these shifts mark a clear move away from temporary relief and toward active enforcement and system restructuring. In this environment, waiting for clarity can be costly.

Below is the SDS 30-day game plan to reduce risk, protect cash flow, and stay in control.

1) If You’re in Default: Protect Your Paycheck and Your Tax Refund First

Default is no longer passive in 2026. As involuntary collections resume, borrowers in default may face wage garnishment and tax refund offsets, often with little advance notice.

The priority is not optimization, it’s stability. Staying in good standing gives you control over when and how money leaves your household.

Priority actions:

• Confirm your loan status (don’t guess, verify).

• Choose a path out of default: typically rehabilitation or consolidation that restores good standing. The right option depends on your goals, timing, and documentation readiness.

• If you’re expecting a tax refund: refunds can be intercepted while loans are in default. Call 800-304-3107 and use the automated system to confirm whether you are on the Treasury Offset list.

Unresolved default can quietly interfere with other financial goals as well—such as housing, credit rebuilding, and access to affordable financing—making early action especially important.

2) If You’re in SAVE (or Stuck in SAVE Forbearance): Build Your “Plan B” Now

Borrower guidance and recent reporting continue to signal that SAVE is in a wind-down posture due to litigation and broader policy restructuring.

What this means in plain language:

Even if your payment is temporarily paused, SAVE is not a long-term solution. Borrowers who wait until a transition window opens may be forced into rushed decisions under pressure.

Pre-deciding your next move now helps avoid confusion, gaps in progress, and unnecessary stress later.

SDS recommendation:

• Model your payment under IBR so you understand what a sustainable alternative looks like today.

• Plan to compare IBR with RAP once RAP becomes available later in 2026.

• If forgiveness progress matters (such as PSLF), avoid gaps that don’t count whenever possible. The right approach depends on your loan type, employment, and current status.

It’s also important to note that while some SAVE borrowers remain in administrative forbearance, interest has resumed, which can quietly increase long-term costs if left unaddressed.

3) Understand the Mid-2026 “Repayment Reshuffle”

Federal student loan repayment is undergoing a major redesign in 2026, aimed at simplifying options—but transitions often come with uncertainty.

What to watch for:

• RAP availability: expected July 1, 2026

• Fewer total repayment plans across the system

• IBR emerging as the primary legacy income-driven plan for many borrowers

Borrowers who understand their repayment eligibility early will be best positioned to choose the most affordable and strategic option when changes take effect. Those who don’t may find themselves placed into less favorable outcomes by default.

4) The Tax Angle Many Borrowers Missed

Two tax-related realities matter heading into 2026:

• Defaulted loans can trigger federal tax refund offsets through the Treasury Offset Program.

• The federal tax-free student loan discharge window ended on December 31, 2025.

This doesn’t mean every borrower will owe taxes on forgiveness—but it does mean forgiveness should no longer be assumed to be tax-free without confirmation. Long-term repayment and forgiveness strategies now require more careful planning.

Your 30-Day Student Loan Checklist

Use the next month to take control before deadlines and enforcement actions limit your options:

• Confirm your current loan status

• Identify exposure to wage garnishment or tax refund offset

• Resolve default or begin the process to restore good standing

• Pre-select a fallback repayment plan if SAVE ends

• Understand whether forgiveness may carry tax consequences

• Align your student loan strategy with other financial goals

SDS Bottom Line

A strong student loan strategy in 2026 isn’t just about finding the lowest payment. It’s about protecting cash flow, avoiding enforcement actions, and making informed decisions before policy changes force your hand. Login into Student Debt Solutions to explore your options and be prepared for 2026.

Borrowers who act early retain flexibility. Those who wait may lose it.