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In many ways, the SAVE (Save Your Precious Education) student loan scheme has been abolished. The Biden administration-era affordable repayment plan faced several legal challenges, and Congress voted to repeal it over the summer.
But Judge John Ross of the U.S. District Court for the Eastern District of Missouri last week dismissed the lead lawsuit against SAVE.
Consumer advocates argue that it could give SAVE a second life, if only for a short time.
“Friday’s ruling was unexpected,” said Nancy Nearman, assistant director of New York’s Education Debt Consumer Assistance Program. “Are we going to lift the forbearance and allow the borrower to make payments with SAVE? Will we start the forgiveness process with SAVE?”
More than 7 million student loan borrowers remained enrolled in SAVE plans as of the fourth quarter, according to the U.S. Department of Education.
Here’s what this development means for borrowers.
It is unclear how the Trump administration will react.
The Biden administration introduced the SAVE plan in 2023, touting it as “the most affordable repayment plan ever created.” Under the program, many borrowers expected their monthly bills to be cut in half. But Republican-led legal challenges quickly put the plan on hold.
After Friday’s ruling, consumer advocacy groups issued a statement calling on the Department of Education to restore access to SAVE benefits for student loan borrowers.
“The court has a unique opportunity to do right by people struggling with staggering living costs and devastating student loan debt,” said Abby Shafroth, managing director of advocacy at the National Consumer Law Center.
However, it remains unclear how the Ministry of Education will react to this ruling. The agency did not respond to multiple requests for comment.
Higher education expert Mark Kantrowitz said there are several next steps Trump officials could take, including appealing the decision, starting a rulemaking process to formally end the SAVE plan, or allowing borrowers to make payments under the program until July 1, 2028, the expiration date under recent legislation.
“The last option is highly unlikely given how ideological the opposition to SAVE is,” Kantrowitz said.
Borrowers still need to look for other options
Despite SAVE’s recent court victory, President Donald Trump’s “big, beautiful bill” would phase out the plan on July 1, 2028. At that point, student loan borrowers will undoubtedly no longer have access to SAVE.
As a result, experts say most borrowers should consider alternative repayment plans as soon as possible. Student loan borrowers who remain in the SAVE forbearance period have been charged interest on their debt since August. Borrowers whose payments are suspended also cannot benefit from loan forgiveness.
The Biden administration granted the forbearance to borrowers enrolled in the plan amid a legal battle, but Trump officials have not yet forced them to come out of the forbearance.
Experts say income-based repayment plans (IBR) are the best choice for many borrowers looking for another affordable repayment option.
Under the terms of IBR, borrowers are supposed to pay 10% of their discretionary income each month, and that percentage rises to 15% for certain borrowers with older loans. Depending on when the loan was taken, debt forgiveness is supposed to occur after 20 or 25 years. Older loans require a longer timeline.
From July 1, 2026, borrowers will also have access to a new option to repay their debts, called Repayment Assistance Plans (RAPs).
With RAP, monthly payments typically range from 1% to 10% of revenue. The more you earn, the more payments you will need to make. With RAP, your student loans are forgiven after 30 years, compared to the typical 20- or 25-year schedules of other plans.
There’s no need to rush into a decision. Advocates say some borrowers may want to see if they can make payments with SAVE.
“If affordability is an issue, it doesn’t hurt to wait a few weeks to see how this goes,” Nearman says.
