US EditionTrump administration announces deal to end key Biden-era student loan repayment program
The settlement ends the SAVE plan, moving over 7 million borrowers to other repayment options amid ongoing legal and administrative challenges.
- On Tuesday, the U.S. Department of Education announced a proposed settlement with the State of Missouri to end the Biden-era Saving on a Valuable Education plan, pending court approval, and move roughly 7 million borrowers into other repayment plans.
- Republican state attorneys general, led by Missouri, sued arguing the Saving on a Valuable Education plan was too generous and former President Joe Biden lacked authority, leading the Eighth U.S. Circuit Court of Appeals to block SAVE in February.
- Under Secretary of Education Nicholas Kent said the Saving on a Valuable Education plan promised expedited forgiveness and payments as low as $0, but `The law is clear: if you take out a loan, you must pay it back`.
- The settlement would make the Trump administration force millions to resume payments; loan servicing companies warn transitioning SAVE borrowers will be difficult, with Scott Buchanan saying `It's gonna be bumpy`.
- The announcement accelerates the phase-out under the One Big Beautiful Bill Act, but the department has not provided a clear timeframe; interest resumed on August 1 and eligibility changes will complete by December 2025.
127 Articles
127 Articles
Idaho Press
Trump administration aims to officially scrap Biden-era student loan forgiveness program
WASHINGTON — The U.S. Department of Education announced a proposed agreement Tuesday that would permanently axe an income-driven student loan repayment plan in which more than 7 million student loan borrowers are enrolled.
What the end of a Biden-era student loan program means for borrowers
The Trump administration has reached a joint settlement with seven states that will effectively shut down a key Biden-era student loan relief program. But what about the roughly 7 million people currently enrolled in it? Danielle Douglas-Gabriel, The Washington Post’s national higher education reporter, joins John Yang to break down the impact on borrowers in the months ahead.
To a measure that will affect millions of borrowers across the country, President Trump’s government officially announced an agreement to end the SAVE plan on Tuesday. The SAVE plan, a key student debt payment program promoted during the Biden era, has been the center of intense legal battles for years, and its sudden termination could put those dependent on it in trouble.
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