Trump Administration Ends Biden's SAVE Student Loan Program Amid State Legal Challenges
The Trump administration has ended the Biden-era SAVE student loan repayment plan through settlements, halting new enrollments and requiring seven million existing borrowers to choose new plans within a limited timeframe.
Overview
The Trump administration, supported by GOP-led states like Missouri, has finalized agreements to terminate the Biden-era SAVE student loan repayment plan.
The Department of Education will cease new enrollments, deny pending applications, and transition existing SAVE borrowers to alternative repayment options.
The SAVE plan, launched in 2023 to aid struggling borrowers, was criticized for exceeding the Secretary of Education's authority, prompting legal challenges.
Seven million borrowers currently enrolled in SAVE now face a limited timeframe to select a new repayment plan or be automatically moved out.
This significant policy reversal follows prior criticisms of the Biden administration's student loan handling and a Supreme Court block of a previous agenda.
Analysis
Center-leaning sources provide a neutral account of the SAVE plan's termination, focusing on factual reporting of the settlement, its legal context, and the implications for borrowers. They present diverse perspectives by attributing strong statements to officials and advocacy groups, while maintaining objective language in their own descriptions of the program and its end.
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FAQ
The SAVE (Saving on a Valuable Education) plan was launched in 2023 under the Biden administration to assist struggling student loan borrowers by offering lower monthly payments and forgiveness provisions.
The SAVE plan was criticized for exceeding the Secretary of Education's authority, with lawsuits led by Missouri and other GOP-led states arguing it unlawfully shifted debt onto taxpayers. Federal courts blocked key provisions, and settlements led to the program's termination.
Existing SAVE borrowers must choose new, legally authorized repayment plans within a limited timeframe or they will be automatically transitioned out of the SAVE program to alternative repayment options.
The Trump administration argued that the Biden administration misled borrowers with promises of low payments and that the SAVE plan would have imposed excessive costs on taxpayers—estimated at $342 billion over ten years.
Missouri and six other states sued to stop the SAVE plan in 2024, leading to court blocks of its forgiveness provisions. The Eighth Circuit halted the entire plan in early 2025, resulting in the resumption of interest and a requirement for borrowers to move into other repayment plans.
History
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