SAVE Act

Trump administration delivers decisive end to Biden's student loan relief plan

The Trump administration has dropped a bombshell by proposing a settlement to obliterate the Biden-era SAVE student loan plan, a program once hailed as a lifeline for millions of borrowers, as Fox Business reports.

This move, awaiting court approval, aims to shut down the controversial relief scheme and transition participants to legally sound repayment options, ensuring taxpayers aren’t left holding the bag for others’ debts.

Let’s turn back the clock to 2023, when the Biden administration unveiled the SAVE plan with grand promises of easing the repayment burden for struggling student loan holders. That rosy vision quickly hit a wall as states like Missouri, joined by six others, launched lawsuits in 2024 to challenge the program’s legality.

A federal judge stepped in, blocking parts of the plan and forcing borrowers into a temporary 0% interest forbearance while the courtroom drama unfolded.

By February of this year, the 8th Circuit Court delivered a knockout punch, halting the entire SAVE initiative, with interest resuming for borrowers by August of that year.

For four years, the Biden administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing administration.”

With the Trump administration’s settlement on the table, the SAVE plan’s demise seems imminent.

Pending court approval, no new enrollments will be permitted, pending applications will be denied, and current participants must pick new repayment plans in a tight window, a bitter pill but perhaps a necessary dose of reality.

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