On Tuesday, the Trump administration announced an agreement to formally end the major student loan The loan repayment program implemented under President Joe Biden.
Education Department The press release said they reached a proposed joint settlement agreement with Missouri to end Biden's “Savings on Education Value” plan. Several Republican-led states sued the department during the Biden administration over the SAVE plan.
The program has been on hold since February when the 8th U.S. Circuit Court of Appeals sided with Missouri and other red states challenging Biden's plan.
A judge would have to approve the proposed agreement, which calls for the Education Department not to enroll new borrowers in the plan, deny any pending applications and transfer all SAVE borrowers to other repayment plans.
The education department said the plan covers more than 7 million people. and that in the coming weeks it will begin providing guidance to affected borrowers on how to repay their loans.
“For four years, the Biden administration has sought to illegally shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their higher education or never even went to college themselves, simply for the sake of a political victory to prop up a failed administration.” Deputy Education Minister Nicholas Kent issued a statement on Tuesday. “The Trump Administration is correcting this mistake and ending this deceptive scheme. The law is clear: If you take out a loan, you must pay it back.”
Missouri Attorney General Kathryn Hanaway, a Republican, said in the same press release: “We value real, long-term solutions from President Trump, not illegal student loan schemes.”
Biden's Efforts for Broad Student Loan Forgiveness Failed Supreme Courtwho discovered that it was illegal exercise of presidential power in 2023.
