SAVE Plan to End Following Settlement with Missouri

WASHINGTON – The U.S. Department of Education announced Tuesday that it reached a proposed settlement with the State of Missouri that would formally end the Biden management’s Saving on a Valuable Education, or SAVE, student loan repayment plan.

Under the proposed agreement, the department will stop enrolling new borrowers in SAVE, deny any pending applications and move all current SAVE borrowers into compliant repayment plans.

If approved by a court, the settlement would end what the department described as a period of uncertainty for more then 7 million borrowers whose loans were placed in administrative forbearance after portions of the plan were halted.Interest on those loans began accruing again earlier this year following a federal appeals court ruling.

“For four years,the Biden Administration sought to unlawfully shift student loan debt onto American taxpayers,” Under Secretary of Education Nicholas Kent said in a statement, adding that the agreement with Missouri would bring an end to what the department called illegal student loan forgiveness.