Millions Of SAVE Plan Borrowers Could Be Forced Into Repayment Plans Under New Settlement
A proposed settlement could force millions of borrowers in the SAVE student loan plan back into traditional repayment plans.Summary
The Trump administration, through a proposed settlement with Missouri, may compel millions of federal student loan borrowers currently enrolled in the “Saving on a Valuable Education” (SAVE) plan to re-enter standard repayment plans. The Department of Education announced the agreement on Tuesday, which would dismiss Missouri’s lawsuit against the federal government while effectively curtailing the SAVE program. As of July, over 7.6 million borrowers were utilizing the SAVE plan, which offers more lenient forgiveness terms, particularly for those with smaller debt amounts. The Trump administration has criticized the Biden administration’s SAVE plan, alleging it unlawfully transfers student loan debt to taxpayers. The total outstanding federal student loan debt currently stands at $1.7 trillion.
(Source：Forbes)