The U.S. Department of Education headquarters is seen on March 06, 2025 in Washington, DC.
Chip Somodevilla | Getty Images News | Getty Images
A federal appeals court has ordered the end of the Saving on a Valuable Education, or SAVE, plan, the Biden-administration-era repayment program that brought lower monthly bills to millions of student loan borrowers.
In a judgment issued late on Monday, the U.S. Court of Appeals for the Eighth Circuit reversed a lower court’s dismissal of a Republican-led legal challenge against SAVE.
The Biden administration introduced theSAVE planin 2023, billing it as “the most affordable repayment plan ever created.” Under the program, many borrowers expected to see their monthly bills cut in half. But Republican-led legal challenges quickly put the plan on ice.
In February, Judge John Ross of the U.S. District Court for the Eastern District of Missouri dismissedthe main lawsuit against SAVE.
Consumer advocates and borrowers hoped that the development meant the program would be revived temporarily. President Donald Trump’s “big beautiful bill” phases out the SAVE plan as ofJuly 1, 2028.
Read more CNBC personal finance coverage
- SAVE plan used by millions of student loan borrowers is over, court orders
- Identity theft and your taxes: It’s ‘a terrible reverse lottery,’ one victim says
- As Iran war disrupts oil prices, consumers could be ‘hammered,’ economist says
- Million-dollar earners have already stopped paying into Social Security for 2026
- Women and the K-shaped economy: Lower pay, affordability issues reduce spending
- Small 401(k) accounts may follow workers to their next job — except Roth money
- In a jobs apocalypse, look to ‘AI-proof’ skilled trades, career experts say
- Middle-income homebuyers have $30,000 more buying power than a year ago
- Average IRS tax refund is up 10.6%, early filing data shows
- GOP ‘big beautiful bill’ to deal ‘shock’ to the ACA marketplace: health experts
- As millions claim Trump’s ‘no tax on overtime’ deduction, filers risk mistakes
- S&P 500 shrugs off 1% daily drops all the time. Investors can too, advisors say
- Where investors can look for stability as the Iran war rattles markets
- What the Iran war market turmoil means for those nearing retirement
- Musk says Grok can help with your taxes. What experts say about AI and tax prep
- CNBC’s Financial Advisor 100: Best financial advisors, top firms ranked
On Monday, four borrowers represented by Public Goods Practice, LLP, filed a lawsuit against the Department of Education, arguing the agency is compelled to immediately implement the SAVE plan. They say the department’s refusal to enact the SAVE plan and provide lower payments and loan discharge to eligible borrowers violates federal administrative law.
The lawsuit was filed just hours before the Eighth Circuit Court’s decision to reverse the earlier dismissal.
More than 7 million student loan borrowers remain enrolled in the SAVE plan as of the fourth quarter,accordingto the U.S. Department of Education.
This is a developing story. Please check back for updates.
About The Author
