Education Dept. settlement will end Biden’s SAVE loan plan in 2026
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The U.S. Department of Education has reached a proposed court settlement in early December 2025 to terminate President Biden’s SAVE income-driven repayment plan in 2026, resolving lawsuits from Republican state attorneys general who argued the program exceeded executive authority. Under the deal, roughly 7 million borrowers currently enrolled in SAVE will be shifted into other repayment plans—likely with higher monthly payments—and months of paused payments under the legal challenge have also stalled progress toward Public Service Loan Forgiveness for affected public‑sector workers.
Student Loans and Higher Education Policy
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