Settlement Moves to End SAVE Repayment Plan
Published December 15, 2025
By AACOM Government Relations
Federal Policy Higher Education OME Advocate
- On Tuesday, December 11, 2025, ED announced it had reached a settlement agreement, pending final court approval, with the State of Missouri to end the Saving on a Valuable Education (SAVE) Plan, an income-driven repayment plan by the Biden administration.
- Republican state attorneys generals, led by Missouri, sued the Biden administration in April 2024, arguing in court that SAVE was too generous. Borrowers were placed on administrative forbearance with a zero percent interest rate as the legal process continued.
- According to the new agreement, the state of Missouri will drop its lawsuit against the administration; in return, ED will not enroll any new borrowers into the SAVE plan and move those currently in the SAVE plan into a different repayment plan.
- If approved, borrowers will be required to resume payments. Borrowers will have a limited amount of time to choose between a fixed or an income-based payment plan and begin repaying their student loans, according to the press release.