WASHINGTON — The U.S. Department of Education announced a proposed agreement Tuesday that would permanently axe an income-driven student loan repayment plan in which more than 7 million student loan borrowers are enrolled.

Under a joint proposal with seven Republican-led states that challenged the program, the department would not enroll any new borrowers in the Saving on a Valuable Education, or SAVE, plan, deny any pending applications and place borrowers currently in the plan into legally compliant repayment plans.

The program, introduced in 2023 under then-President Joe Biden’s administration, was hit with legal challenges from several GOP-led states, including Missouri, and has been blocked by the courts. The initiative sought to provide lower monthly loan payments for borrowers and

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