Federal Appeals Court Ends Biden-Era Student Loan Repayment Plan, Affecting Millions
Millions of student loan borrowers enrolled in the Biden administration's Saving on a Valuable Education (SAVE) repayment plan are facing a significant transition. A federal appeals court has ordered the termination of the SAVE plan, which was introduced in 2023 as an affordable income-driven repayment option for federal student loan borrowers. The plan aimed to reduce undergraduate loan payments, lower some monthly bills to $0, and provide earlier forgiveness for borrowers with smaller balances. However, legal challenges from Republican attorneys general argued that the administration overstepped its authority, leading to the plan's dismantling. Borrowers must now select a new repayment plan by July 1, 2026, or risk being automatically transferred into another plan. The primary replacement option is the Repayment Assistance Plan (RAP), created under President Trump's One Big Beautiful Bill Act, which will become available on July 1, 2026.