Biden’s Student Loan Plan Killed: Millions Must Re-Enrol

Tonight, a major shift for millions of Americans with student loans. The U.S. Department of Education has moved to officially shut down President Joe Biden’s signature student loan repayment program, known as the SAVE Plan.

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It’s now official: the Biden-era SAVE student loan repayment plan is coming to an end. The announcement follows a proposed legal settlement revealed on December 9th, after multiple red states sued to block the program back in early 2024.

If the courts approve the agreement, the Department of Education will close the SAVE program permanently. That means no new borrowers will be allowed to enroll, all pending SAVE applications will be denied, and the more than 7 million current SAVE borrowers will be moved into other repayment plans.

For many borrowers, this brings an end to nearly a year and a half of uncertainty. Since June of last year, SAVE participants have been placed in administrative forbearance — meaning they didn’t have to make payments, though interest began accumulating again in August.

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The settlement also marks a major reversal of Biden’s student loan relief efforts. According to the Trump administration, the decision delivers what it calls the “final nail in the coffin” to Biden’s push for nearly $200 billion in student debt relief. Under SAVE alone, about $5.5 billion had already been forgiven for nearly half a million borrowers, and many others saw their monthly payments drop to zero.

However, the Trump administration’s Under Secretary of Education, Nicholas Kent, sharply criticized the original program, calling it a political maneuver and saying, “The law is clear: If you take out a loan, you must pay it back.”

Advocacy groups are pushing back. Protect Borrowers, a national student debt organization, called the settlement a “back-room deal” and accused conservative officials of working to raise costs for working people.

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The Education Department says borrowers coming off the SAVE plan will have a limited window to choose new repayment options. It is urging borrowers to use tools on the Federal Student Aid website to estimate their future payments and find the plan that best fits their situation.

With the SAVE program now on its way out, millions of Americans will need to act quickly to avoid disruption to their repayment schedules. More updates are expected as courts review the settlement.
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