Archive · 10 Dec 2025
Trump Administration Ends Biden's SAVE Student Loan Plan
The Trump Administration has proposed an agreement to end the SAVE student loan repayment plan.
This plan, which was started by the Biden Administration, allowed people to pay very little or nothing on their student loans and even get forgiveness for some of their debt.
However, some states, like Missouri, said this plan was not legal.
The agreement, if approved by the court, will stop the SAVE Plan and move over 7 million people to other legal repayment plans.
The Department of Education will also work on a new plan called the Repayment Assistance Plan (RAP), which will be available in 2026.
People who are currently in the SAVE Plan will need to choose a new plan soon.
The Department will help them understand their options.
The Trump Administration proposed a settlement to end the SAVE student loan repayment plan.
Over 7 million current SAVE borrowers will need to transition to legal repayment options.
The SAVE Plan offered low payments and short-term forgiveness, costing an estimated $342 billion over ten years.
The Department of Education will implement a new Repayment Assistance Plan (RAP) by July 1, 2026.
Borrowers are encouraged to use the FSA’s Loan Simulator tool to explore available legal repayment plans.
- Who
- US Department of Education, Missouri Attorney General Catherine Hanaway, Under Secretary of Education Nicholas Kent
- What
- End of the SAVE student loan repayment plan
- When
- December 9, 2024 (announcement)
- Where
- United States
- Why
- Legal challenges and court rulings
- SAVE Plan
- A student loan repayment plan offering low payments and short-term forgiveness
- Cost of SAVE Plan
- Estimated $342 billion over ten years
- Current SAVE Borrowers
- Over 7 million
- New Repayment Plan
- Repayment Assistance Plan (RAP) available by July 1, 2026
- Legal Challenge
- Led by Missouri and other states
