Millions of borrowers in Biden's SAVE plan would start paying under new settlement

Cory Turner

December 09, 2025 / 12:14 pm

The U.S. Department of Education announced Tuesday that it had reached a proposed settlement agreement to end a popular, yet controversial Biden-era student loan repayment plan.

The Saving on a Valuable Education plan, better known as SAVE, was the most flexible and generous of all income-driven repayment plans, promising expedited loan forgiveness and monthly payments as low as $0 for low-income borrowers. Republican state attorneys general, led by Missouri, sued the Biden administration, arguing in court that SAVE was too generous.

The legal challenges put all SAVE borrowers in limbo for months, during which they were not required to make payments on thei

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