Trump officials seek to end relief
President Donald Trump’s nominee for Secretary of Education, Linda McMahon, testifies at the Senate Health, Education, Labor and Pensions Committee confirmation hearing at the Dirksen Senate Office Building in Washington, DC, on February 13, 2025.
Win Mcnamee | Getty Images
The Trump administration has announced a proposed joint settlement with Missouri that could soon force millions of borrowers to repay the Biden-era payment pause.
Student loan borrowers enrolled in Precious Education Savings plan forbearance will be required to choose a new repayment plan, the U.S. Department of Education said in a statement. Press release on Tuesday.
The entire SAVE plan has been blocked since February by the 8th U.S. Circuit Court of Appeals. sided Republican-led states have argued that former President Joe Biden lacks the authority to create his student loan relief plan.
According to the department, the proposed solution would see the SAVE case dismissed in exchange for the Department of Education agreeing not to enroll new borrowers in SAVE and moving all borrowers currently in the plan to “legal repayment plans.”
As of July, the Department of Education identified more than 7.6 million borrowers in SAVE forbearance.
GOP states had suggested that Biden, along with SAVE, was trying to find a roundabout way to forgive student debt after the Supreme Court blocked Biden’s sweeping debt cancellation plan in June 2023.
SAVE came with two key provisions targeted by the lawsuits: Its monthly payments were lower than other federal student loan repayment plans, and it led to faster debt cancellation for those with smaller balances.
More than 42 million Americans have student loans and outstanding debt $1.6 trillionAccording to the Congressional Research Service.
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