Biden's Signature Student Loan Repayment Plan May Be on the Chopping Block as Trump Administration Seeks to Scrap SAVE Program
In a move that could send millions of student borrowers back into debt, the Trump administration has reached an agreement with the state of Missouri that could effectively terminate President Biden's signature student loan repayment plan, known as the Saving on a Valuable Education (SAVE) program.
Under the proposed settlement, which is pending court approval, the Department of Education will stop enrolling new borrowers in the SAVE plan and deny all pending applications. Existing SAVE borrowers, however, will be given a "limited time" to enroll in a new repayment plan and begin making payments, according to the department's notice.
This move could force millions of borrowers to scramble for alternative repayment options, potentially leaving them with higher monthly bills. Mark Kantrowitz, a higher education expert, warned that borrowers may need to exit the SAVE forbearance early next year, which would be a quicker timeline than what was initially planned under The One Big Beautiful Bill Act.
The Biden administration had touted the SAVE program as the "most affordable student loan repayment plan ever," allowing 4.6 million of its more than 7 million enrollees to lower their monthly bills to $0 per month. However, critics argue that the program unfairly shifts student loan debt onto American taxpayers, with the Education Department estimating that it would cost taxpayers over $342 billion over ten years.
The Trump administration's decision is part of a months-long legal battle over the program's fate, which has left millions of SAVE borrowers in limbo. The plan was challenged by attorneys general from several Republican-led states, including Missouri, which sued in 2024 arguing that the Biden administration overstepped its authority. In February 2025, a circuit court ruled that the SAVE plan was unlawful.
As the debate rages on, borrowers are facing uncertainty about their future repayment plans. The Education Department is advising them to explore alternative options using the Federal Student Aid Loan Simulator tool. The new income-driven repayment plan, known as the Repayment Assistance Plan, will be available for new borrowers beginning on July 1, 2026, along with a separate standard repayment plan.
The Trump administration's move has been met with criticism from advocacy groups, including Protect Borrowers, which described it as "stripping borrowers of the most affordable repayment plan." The group's deputy executive director and managing counsel, Persis Yu, warned that the new interest charges could cost enrollees $300 per month due to increased borrowing costs.
In a move that could send millions of student borrowers back into debt, the Trump administration has reached an agreement with the state of Missouri that could effectively terminate President Biden's signature student loan repayment plan, known as the Saving on a Valuable Education (SAVE) program.
Under the proposed settlement, which is pending court approval, the Department of Education will stop enrolling new borrowers in the SAVE plan and deny all pending applications. Existing SAVE borrowers, however, will be given a "limited time" to enroll in a new repayment plan and begin making payments, according to the department's notice.
This move could force millions of borrowers to scramble for alternative repayment options, potentially leaving them with higher monthly bills. Mark Kantrowitz, a higher education expert, warned that borrowers may need to exit the SAVE forbearance early next year, which would be a quicker timeline than what was initially planned under The One Big Beautiful Bill Act.
The Biden administration had touted the SAVE program as the "most affordable student loan repayment plan ever," allowing 4.6 million of its more than 7 million enrollees to lower their monthly bills to $0 per month. However, critics argue that the program unfairly shifts student loan debt onto American taxpayers, with the Education Department estimating that it would cost taxpayers over $342 billion over ten years.
The Trump administration's decision is part of a months-long legal battle over the program's fate, which has left millions of SAVE borrowers in limbo. The plan was challenged by attorneys general from several Republican-led states, including Missouri, which sued in 2024 arguing that the Biden administration overstepped its authority. In February 2025, a circuit court ruled that the SAVE plan was unlawful.
As the debate rages on, borrowers are facing uncertainty about their future repayment plans. The Education Department is advising them to explore alternative options using the Federal Student Aid Loan Simulator tool. The new income-driven repayment plan, known as the Repayment Assistance Plan, will be available for new borrowers beginning on July 1, 2026, along with a separate standard repayment plan.
The Trump administration's move has been met with criticism from advocacy groups, including Protect Borrowers, which described it as "stripping borrowers of the most affordable repayment plan." The group's deputy executive director and managing counsel, Persis Yu, warned that the new interest charges could cost enrollees $300 per month due to increased borrowing costs.
. So they're basically trying to scrap the SAVE program because it's not in line with their agenda, and now millions of borrowers are gonna be stuck with higher monthly bills? Like, what even is the point of that? The administration says it's gonna force them to explore alternative options, but let's be real, those alternatives are probably just gonna end up costing 'em more money too 
. And don't even get me started on the 342 billion dollars that taxpayers are gonna have to fork over... that's just crazy 
. I mean, can't they see how this whole thing is gonna mess with people's lives? The fact that a court already ruled the program was unlawful doesn't seem to be stopping them from trying to sabotage it anyway 
. This whole situation is just a nightmare for borrowers...
this is so frustrating for student borrowers... i mean, i get it that the trump admin wants to scrap the program but can't they see how much of a strain this will put on people's finances? 
like, the save plan was supposed to be the most affordable option and now millions are gonna have to scramble for something else. what if they can't find a better deal? 
. Mark Kantrowitz is right, though - these borrowers are going to need to scramble for new repayment options ASAP. It's just not fair 
.
but now it might get axed 
millions of people are gonna have to scramble for a new plan 
more debt 
and let's be real who doesn't love paying $342 billion 
especially for people who are already struggling 
and now they gotta navigate a whole new system 
it's like, can't we just get some peace and quiet about our student loans 
]
gotta keep an eye on this one
it'd be so cool! and btw did you know that there's this new cafe downtown that has the best matcha lattes i've ever had 
. i know we can't blame the Trump admin just yet, but this move feels like a huge step back for student loan borrowers 
. i hope the Biden admin can find a way to save the SAVE plan (lol) or at least offer some kind of alternative that doesn't leave people with higher bills 
. I don't get why they need to mess with something that worked in the first place? The Biden admins did a good job with SAVE and now they're undoing all their hard work 
.
. I feel bad for those millions of people who were counting on the SAVE program to help them pay off their debt. Now they're being forced to scramble around for alternative options that might not even work better for them 
.