Trump Administration Kills SAVE Plan, Millions To Pay More Because… Law
KEY POINTS
- •The Trump administration announced a settlement to end the SAVE repayment plan paused since last summer due to Missouri's lawsuit.
- •If approved, 7 million enrolled and 450,000 interested borrowers must switch plans, likely resulting in higher payments starting 2025.
- •The Department of Education said the new Repayment Assistance Plan launching in 2026 offers forgiveness after 30 years but is less generous monthly.
In a dazzling display of bipartisan timing, Trump's Department of Education announced on a Tuesday that the SAVE student-loan repayment plan—dreamed up in summer by President Joe Biden for 7 million borrowers to pay affordable amounts and get faster forgiveness—is officially kaput thanks to a lawsuit from GOP-led Missouri and pals. Undersecretary Nicholas Kent called SAVE a 'deceptive scheme,' as the department preps to boot 450,000 hopefuls off the plan and toss them into higher payment plans by 2025. The new Repayment Assistance Plan launches in July 2026, promising forgiveness after 30 years, but with stingier payments. No clear timeline for the 'negotiated rulemaking' shuffle, and as Carolyn Fast and Abby Shafroth note, the whole thing screams confusion and financial stress amidst a national affordability crisis. That’s a big win for clarity in chaos!
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SAVE the plan? More like wave goodbye as Trump & Co. send millions back to higher payments and infinite paperwork—because nothing says 'affordable education' like a decade-long financial stress marathon.
Who knew student loans could be the latest theatrical production starring Trump admin as villains killing affordable repayment plans? Tickets to misery sold separately.
Student borrowers wanted affordable payments; GOP states wanted a lawsuit party. Spoiler alert: lawsuits won, wallets cried.
Source: Businessinsider | Published: 12/11/2025 | Author: Ayelet Sheffey
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