"Under a joint proposal with seven Republican-led states that challenged the program, the department would not enroll any new borrowers in the Saving on a Valuable Education, or SAVE, plan, deny any pending applications and place borrowers currently in the plan into legally compliant repayment plans. The program, introduced in 2023 under then-President Joe Biden's administration, was hit with legal challenges from several GOP-led states, including Missouri, and has been blocked by the courts."
"The initiative sought to provide lower monthly loan payments for borrowers and forgive remaining debt after a certain period of time. If a Missouri federal court approves the agreement, the department said borrowers currently enrolled in the SAVE plan "will have a limited time to select a new, legal repayment plan and begin repaying their student loans." The agreement stems from a legal challenge to the plan brought by Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma in 2024."
The U.S. Department of Education announced a proposed agreement with seven Republican-led states to permanently end the Saving on a Valuable Education (SAVE) income-driven repayment plan. The proposal would halt new enrollments, deny pending applications and transition more than 7 million current enrollees into legally compliant repayment plans. The SAVE program was introduced in 2023 and has been blocked by courts following legal challenges from GOP-led states. If a Missouri federal court approves the agreement, borrowers in SAVE will have a limited time to choose a new repayment plan and resume loan payments.
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