Posted on 12/11/2025 2:49:14 PM PST by Republican Wildcat
Settlement with Missouri ends SAVE program that Biden administration estimated would cost taxpayers $342B over decade
The Trump administration took the final step toward killing the Biden administration's SAVE student loan plan, announcing a proposed settlement that would shutter the program and force millions into new, legally authorized repayment options.
"For four years, the Biden administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing administration," U.S. Department of Education Under Secretary Nicholas Kent said in a press release.
On Tuesday, the DOE and the State of Missouri reached an agreement to end former President Joe Biden’s Saving on a Valuable Education plan. This means no further enrollments for any new borrowers, the denial of pending applications and moving all SAVE borrowers into legal repayment plans. If the settlement is approved by a court, it will mark the "definitive end" of Biden’s student-loan repayment program.
(Excerpt) Read more at foxbusiness.com ...
Outside of national security needs, the government should not be in the business of student loans. Not only should we go back to private funding, but loan guarantees should only apply to degrees that directly benefit the nation AND are highly likely to lead to gainful employment and loan repayment - DEI majors need not apply. Let’s see if private lenders are willing to loan tens of thousands of their own dollars to students of below average intelligence for degrees that provides no prospect for gainful employment.
Sounds like we’re getting out of the Student Loan business. Am I reading that right?
I agree but student loans should NOT be shielded from bankruptcy either. If you foolishly give out loans to deadbeats, you shouldn’t be protected by special rules.
We are out of the business of giving away $$$ to pay for education.
Student loans are still just a loan.
“”I agree but student loans should NOT be shielded from bankruptcy either.””
I don’t think they were shielded unless things have changed which his pretty likely..Everything but the kitchen sink went into bankruptcy filings EXCEPT student loans..
Decided to look it up:
“”Understanding Student Loans and Bankruptcy
Student loans are treated differently from other types of debt in bankruptcy. While it is possible to include them in bankruptcy filings, they are generally not automatically discharged. To successfully discharge student loans, borrowers must demonstrate that repaying the loans would cause “undue hardship,” a legal standard that is not clearly defined in the Bankruptcy Code but is interpreted by courts on a case-by-case basis.””
Can we please abolish the Department of Education now?
(It would require Congress to pass a bill. Nobody in Trump’s admin has even asked for a bill.)
It was a campaign promise. Some of us have not forgotten.
Agree. It’s a loan like any other. The lender should make the loan based on risk, not special treatment in bankruptcy. That kind of protection would encourage bad loans.
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