The U.S. Department of Education said it has reached a proposed joint settlement agreement with the state of Missouri to bring an end to President Joe Biden’s Saving on a Valuable Education (SAVE) student‑loan repayment program.
Settlement Details
The settlement would require the Department to not enroll any new borrowers, deny any pending applications, and move all current SAVE borrowers into other repayment plans. A judge will have to sign off on the proposed agreement.
Legal Background
The SAVE program had been on hold since February, when the 8th U.S. Circuit Court of Appeals sided with Missouri and other Republican‑led states that challenged the plan. The Supreme Court struck down Biden’s broad student‑loan forgiveness in 2023, ruling it an unlawful exercise of presidential power.
Statements from Officials
More than 7 million people are enrolled in the plan. Under Secretary of Education Nicholas Kent said: “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. The Trump Administration is righting this wrong and bringing an end to this deceptive scheme. The law is clear: if you take out a loan, you must pay it back.” Missouri Attorney General Catherine Hanaway added: “We appreciate President Trump’s real, long‑term solutions instead of illegal student loan schemes.”
The average American carries more than $92,000 in debt, including credit cards, student loans, mortgages and more.
Key Takeaways
- The Department of Education has reached a proposed settlement with Missouri to terminate the SAVE program.
- The settlement requires the Department to stop enrolling new borrowers, deny pending applications, and re‑assign current borrowers to other plans.
- More than 7 million borrowers are affected, and the program has been halted since a 2022 court ruling.
The settlement marks the end of a Biden‑era student‑loan repayment initiative that had faced legal challenges and criticism from Republican officials.
