Trump Administration Ends SAVE Plan, Forcing 7 Million Borrowers Back into Repayment
The TRUMP Administration has terminated the Saving on a Valuable Education (SAVE) Plan, immediately affecting over 7 million student loan borrowers. A December 9 settlement with Missouri mandates the Education Department to cease new enrollments and transition existing participants to standard repayment plans.
This reversal follows an 8th Circuit Court ruling in February 2025 that blocked the Biden-era program, siding with Republican states challenging its legality. 'The administration unlawfully shifted debt onto taxpayers who never benefited from these loans,' stated Under Secretary Nicholas Kent, framing the decision as fiscal responsibility.
Borrowers now face urgent decisions about alternative repayment options as the pandemic-era relief measure concludes. The policy shift underscores ongoing political battles over student debt solutions.
