"The Education Department aims to settle a lawsuit with the state of Missouri that will put an end to a Biden-era loan repayment policy. That plan, known as Saving on a Valuable Education, has been blocked since summer 2024, and court battles have left nearly eight million borrowers in limbo. If approved by a federal judge, the settlement agreement will expedite Congress's plan passed in the One Big Beautiful Bill Act to repeal SAVE in July 2028."
"Among other provisions, the department agreed to move all SAVE borrowers into "legal repayment plans," deny pending applications and not forgive student loans for eligible borrowers. The department didn't say Tuesday how that transition for borrowers would work aside from that those on SAVE will have a limited time to switch. A notice to borrowers noted that the online tool to explore other repayment plans won't be up-to-date until later this month."
The Education Department plans to settle a lawsuit with Missouri to end the Biden-era Saving on a Valuable Education (SAVE) repayment plan. SAVE has been blocked since summer 2024, leaving nearly eight million borrowers in limbo. If a federal judge approves the settlement, the agreement will accelerate Congress’s One Big Beautiful Bill Act provision to repeal SAVE in July 2028. The department agreed to move all SAVE borrowers into legal repayment plans, deny pending applications, and not forgive loans for eligible borrowers. Transition details remain unclear, with an online repayment-plan tool not fully updated. Critics warn of confusion, financial stress, and increased default risk.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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