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Posted on 12/09/2025 8:29:02 PM PST by SeekAndFind
The Trump administration is moving to dismantle the federal student loan repayment plan known as SAVE, the last remnant of the Biden-era effort to provide large-scale student debt relief.
The U.S. Department of Education announced on Dec. 9 that it had reached a proposed settlement with Missouri and six other Republican-led states that sued to block the SAVE plan. The plan still needs approval from the U.S. District Court of the Eastern District of Missouri’s Eastern Division.
The states argued that the Biden administration exceeded its authority when it created SAVE in 2023, a program that offered millions of borrowers lower monthly payments and an accelerated path to debt erasure.
SAVE, described by the Biden administration as the “most affordable repayment plan ever,” allowed borrowers who originally took out $12,000 or less to have their debts forgiven after 10 years of qualifying payments. It also calculated monthly bills based on a small percentage of a borrower’s income, reducing payments to as low as zero dollars for millions.
Since its debut, the plan had canceled $1.2 billion in federal student loan debt owed by more than 150,000 borrowers. That relief ended in spring 2024 when a federal district court intervened to halt further debt discharges.
The SAVE program was introduced after the U.S. Supreme Court shot down President Joe Biden’s original mass-debt-cancellation plan, which relied on the post-9/11 HEROES Act that allows the education secretary to modify student loan-related rules during war or national emergencies.
SAVE instead drew its authority from a different statute, but the seven states argued that it was another attempt at broad debt cancellation that the Supreme Court had already forbidden.
The SAVE plan “is not the product of a well-reasoned decision,” their complaint read. “It is a pretext to evade a Supreme Court decision.”
In July 2024, the Eighth Circuit Court of Appeals affirmed the district court’s order and blocked the SAVE plan in its entirety. As a result, borrowers enrolled in SAVE were placed into an interest-free forbearance, where they have remained for a year.
On Feb. 18, the Eighth Circuit issued its long-awaited final decision, again siding with the suing states. The ruling not only continued to block SAVE but also prevented the Trump administration from processing forgiveness for borrowers enrolled in older, income-driven repayment plans.
As of July, the Education Department had identified more than 7.6 million borrowers in SAVE-related forbearance.
Under the proposed Dec. 9 settlement, the Education Department would stop enrolling any new borrowers into SAVE, reject all pending SAVE applications, and move all current SAVE borrowers into legally authorized repayment plans.
If the terms are approved by the court, roughly 7 million borrowers will have a limited window to select a different repayment plan and resume payments.
The Education Department hailed the settlement, which it said would mark a “definitive end” of the Biden administration’s student loan relief agenda.
“The law is clear: If you take out a loan, you must pay it back,” Under Secretary of Education Nicholas Kent said in a statement, arguing that Biden-era practices unfairly forced taxpayers, including those who did not go to college, to shoulder other people’s higher-education costs.
“Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies,” Kent said.
The states involved in the settlement are Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma. Missouri also played a crucial part in the Supreme Court case that struck down Biden’s original debt-cancellation plan.
In that legal battle, Missouri made the case that forgiveness would reduce revenue for the Higher Education Loan Authority of the State of Missouri (MOHELA), a federal loan servicer that oversees 7.7 million accounts. Because MOHELA is a state-created entity, Missouri argued that harm to MOHELA constitutes harm to the state itself, a key argument that secured legal standing.
The Missouri-led lawsuit was filed less than a month after a separate coalition of 11 Republican-led states took legal action against SAVE, making similar arguments that neither the president nor the Education Department has the authority to turn loan repayment into what resembles a grant program.
Some states also claimed they would lose tax revenue under SAVE.
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It’s called banks. Make sure they are threatened with bill collectors.
Let the universities and the so-called professors take on some of the financial burdens for their worthless degrees.
My ex-DIL, a rabid Trump hater, is going to go postal if this plan disappears. She was so happy that she only had to pay $200 a month thanks to Biden’s overreach. She’s seriously deranged over Trump & we no longer speak (her choice), partly due to politics. I’m a little sad that I won’t be able to witness it.
How did we ever get into the student loan business. That’s what banks are for.
Of all of Biden’s rotten tricks, his student-loan bailout was 2nd only to his open-border policy. This was a pure giveaway to a constituency that overwhelmingly supported him, i.e., highly educated underachievers.
use the universities endowments to help pay for thier scam
I want her MISERABLE.
“ SAVE, described by the Biden administration as the “most affordable repayment plan ever,””
I think the definition of “affordable” for democrat voters might be. ….. other taxpayers pay for my freebies.
That’s not how our country works.
The issue is only students who are strong enough to be underwritten with a commercial loan should go into debt for college.
Students with “worthless degrees” were worthless students.
Let them pay back their loans like everyone else must do. I always paid mine back, but never took out a college loan hoping I’d get rich upon graduation & then I could pay it back.
As you will recall, the Obama administration took over the student loan business.
You are one stupid sob
There is no such thing as a worthless degree. Once you begin working, no one cares about your major. I worked with software developers with history majors. My pastor has a history degree. I worked with a guy who had a Black History degree. He already had a developer job and needed an easy degree to get promoted. All the employer (university) cared about was....wait for it....the BS.
Thanks, obvious genius.
That’s a completely different question.
For the last couple of decades, many employers wanted to see a degree to show that someone could and would play the game with some level of stick-to-itness.
Too many degrees now don’t even show that, since the students are just widgets kept on the assembly line to bag student loans from Uncle Sam.
You’re right about that. But we’ve got loads of young adults barely doing anything for 6 years and not coming out particularly employable, just as they went in. Then they expect that “degree” to be their magic ticket.
No matter the major, you still have to take the core classes just like everyone else. It’s why so many kids do it at a community college. My son has an Accounting degree from a large university. He is an Electrician. He had no student loans.
Oddly, my “easy useless” degree was Accounting which I got for free through my employer. I never used it but I had a 3.5 GPA. My other undergrad (BIT) GPA was 2.02.
If we want to fix the student loan problem, make parents co-sign for them.
I’m not talking about such “useless” degrees. I’m talking about kids who show up in college ill-educated—and don’t acquire any significant skills while there.
Good for you and the kid maxxing out CC and not going into debt. That’s what I’d have 75% of our college students do at this point.
I paid for a 4 year degree for him. He hated college but he has to go back to get his Electrician ticket. That’s on him.
Parents are too quick to put kids into debt for college. If they had skin in the game, they would think twice about it. You can go to college for free. I worked with several people who did it. I could take classes for free while I was working for the university. Now that I think about, it also might be true as a retiree.
There is quite a bit of “country club” degrees where the kids go to party rather than study. The smart kids go to school for the internship. My cousin got a security clearance in college as a developer and is now making huge $$$ working as a remote government contractor.
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