A long-running legal battle over the Biden administration’s Saving on a Valuable Education, or SAVE, plan reached a conclusion on Tuesday, when the U.S. Department of Education and the State of Missouri announced a proposed joint settlement agreement (PDF File) that would terminate the program, pending final court approval. The announcement , which has been expected for months especially in light of the One Big Beautiful Bill Act also terminating the plan, brings borrowers another step closer to some timelines for resuming payments . The agreement, filed in federal district court, comes after nearly two years of legal challenges from Missouri and several other states, which argued that the administration exceeded its authority by redesigning the federal income-driven repayment system through executive action. Courts repeatedly halted portions of SAVE and, earlier this year, blocked the program in its entirety, throwing borrowers into a prolonged period of confusion. Under the proposed settlement, the Department of Education will: Stop enrolling new borrowers in SAVE Deny all pending applications Shift existing enrollees into other legally authorized repayment plans. The department would also undertake a negotiated rulemaking process to formally repeal SAVE and address related regulatory questions, such as how, when, and where the borrowers in SAVE will be moved. The settlement still requires judicial approval, but that's expected shortly. It's important to note that the negotiated rulemaking process will determine how and when SAVE is formally removed from federal regulations.
