{"id":13265,"date":"2025-12-14T07:24:01","date_gmt":"2025-12-14T07:24:01","guid":{"rendered":"https:\/\/www.jubi24.com\/?p=13265"},"modified":"2025-12-14T07:24:01","modified_gmt":"2025-12-14T07:24:01","slug":"proposed-settlement-would-end-save-student-loan-repayment-plan-npr","status":"publish","type":"post","link":"https:\/\/www.jubi24.com\/?p=13265","title":{"rendered":"Proposed settlement would end SAVE student loan repayment plan : NPR"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"storytext\">\n<div id=\"res1185521054\" class=\"bucketwrap image large\">\n<div class=\"imagewrap has-source-dimensions\" data-crop-type=\"\" style=\"&#10;        --source-width: 5000;&#10;        --source-height: 3330;&#10;    \">\n        <picture><source  data-template=\"https:\/\/media.npr.org\/assets\/img\/2023\/06\/30\/npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg?s={width}&amp;c={quality}&amp;f={format}\"  class=\"img\" type=\"image\/webp\"\/><source  data-template=\"https:\/\/media.npr.org\/assets\/img\/2023\/06\/30\/npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg?s={width}&amp;c={quality}&amp;f={format}\"  class=\"img\" type=\"image\/jpeg\"\/><img decoding=\"async\" src=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg\" data-template=\"https:\/\/media.npr.org\/assets\/img\/2023\/06\/30\/npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg?s={width}&amp;c={quality}&amp;f={format}\" class=\"img\" alt=\"A college graduate has two people pulling on tassels connected to her graduation cap.\" fetchpriority=\"high\"\/>\n        <\/picture>\n<\/div>\n<div class=\"enlarge_measure\">\n<div class=\"img_wrap\">\n        <picture><source data-original=\"https:\/\/media.npr.org\/assets\/img\/2023\/06\/30\/npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg?s=2600&amp;c=100&amp;f=webp\" type=\"image\/webp\"><source data-original=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697040_496_npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg\" type=\"image\/jpeg\"><img decoding=\"async\" src=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697040_496_npr_ceciliacastelli_illus2_slide-edit_custom-d3fdc932ec04203c575fc7384ada14590c2157d6.jpg\" alt=\"A college graduate has two people pulling on tassels connected to her graduation cap.\"\/><br \/>\n        <\/source><\/source><\/picture>\n    <\/div>\n<\/div><\/div>\n<p>   The U.S. Department of Education <a href=\"https:\/\/www.ed.gov\/about\/news\/press-release\/us-department-of-education-announces-agreement-missouri-end-biden-administrations-illegal-save-plan\" target=\"_blank\">announced Tuesday<\/a> that it had reached a proposed settlement agreement to end a popular, yet controversial Biden-era student loan repayment plan.<\/p>\n<p>   The Saving on a Valuable Education plan, better known as SAVE, was the <a href=\"https:\/\/www.npr.org\/2023\/07\/14\/1187545921\/student-loan-forgiveness-save-repayment\" target=\"_blank\">most flexible and generous<\/a> of all income-driven repayment plans, promising expedited loan forgiveness and monthly payments as low as $0 for low-income borrowers. Republican state attorneys general, led by Missouri, sued the Biden administration, arguing in court that SAVE was too generous.<\/p>\n<aside id=\"ad-backstage-wrap\" class=\"ad-wrap backstage\" aria-label=\"advertisement\">\n<\/aside>\n<div id=\"resnx-s1-5638567-100\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5477646\" href=\"https:\/\/www.npr.org\/2025\/07\/24\/nx-s1-5477646\/student-loan-repayment-forgiveness-trump\" data-metrics-ga4=\"{&quot;category&quot;:&quot;recirculation&quot;,&quot;action&quot;:&quot;story_recirculation_click&quot;,&quot;clickType&quot;:&quot;inset box&quot;,&quot;clickUrl&quot;:&quot;https:\\\/\\\/www.npr.org\\\/2025\\\/07\\\/24\\\/nx-s1-5477646\\\/student-loan-repayment-forgiveness-trump&quot;}\"><picture><source  data-original=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_460_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2083x2083+667+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fd1%2F89%2Fd2bf4f5f4416a20dd48860890d61%2Fgettyimages-1676464096.jpg\" data-format=\"webp\" class=\"img lazyOnLoad\" type=\"image\/webp\"\/><source  data-original=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_460_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2083x2083+667+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fd1%2F89%2Fd2bf4f5f4416a20dd48860890d61%2Fgettyimages-1676464096.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" type=\"image\/jpeg\"\/><img decoding=\"async\" src=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_460_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2083x2083+667+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fd1%2F89%2Fd2bf4f5f4416a20dd48860890d61%2Fgettyimages-1676464096.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"This illustration shows a statue of Atlas holding up a giant graduation cap.\" loading=\"lazy\"\/><\/picture><\/a>         <\/p>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5638567-100\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>The legal challenges put all SAVE borrowers in limbo for months, during which they were not required to make payments on their loans \u2013 even after many had already spent years in a pandemic payment pause. <a href=\"https:\/\/www.npr.org\/2025\/07\/24\/nx-s1-5477646\/student-loan-repayment-forgiveness-trump\" target=\"_blank\">Interest resumed accruing<\/a> on SAVE loans in August.<\/p>\n<p>&#8220;The law is clear: if you take out a loan, you must pay it back,&#8221; Under Secretary of Education Nicholas Kent said in a statement announcing the proposed agreement. &#8220;Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies.&#8221;<\/p>\n<p>Tuesday&#8217;s agreement, pending court approval, would end the long legal battle over SAVE by ending SAVE itself. The Education Department would commit not to enroll more borrowers in SAVE, to deny all pending SAVE applications and to move the roughly 7 million borrowers still enrolled in SAVE into other repayment plans \u2013 though some of those plans <a href=\"https:\/\/www.npr.org\/2025\/07\/24\/nx-s1-5477646\/student-loan-repayment-forgiveness-trump\" target=\"_blank\">are also in flux<\/a>.<\/p>\n<div id=\"resnx-s1-5638567-101\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5343770\" href=\"https:\/\/www.npr.org\/2025\/03\/31\/nx-s1-5343770\/trump-student-loan-forgiveness\" data-metrics-ga4=\"{&quot;category&quot;:&quot;recirculation&quot;,&quot;action&quot;:&quot;story_recirculation_click&quot;,&quot;clickType&quot;:&quot;inset box&quot;,&quot;clickUrl&quot;:&quot;https:\\\/\\\/www.npr.org\\\/2025\\\/03\\\/31\\\/nx-s1-5343770\\\/trump-student-loan-forgiveness&quot;}\"><picture><source  data-original=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_566_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fa6%2F64%2F9f05bfe94ed6945857ccd392cf83%2Fcapossela-npr-book-education-v2-final.jpg\" data-format=\"webp\" class=\"img lazyOnLoad\" type=\"image\/webp\"\/><source  data-original=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_566_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fa6%2F64%2F9f05bfe94ed6945857ccd392cf83%2Fcapossela-npr-book-education-v2-final.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" type=\"image\/jpeg\"\/><img decoding=\"async\" src=\"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/12\/1765697041_566_\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fa6%2F64%2F9f05bfe94ed6945857ccd392cf83%2Fcapossela-npr-book-education-v2-final.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"Eight million federal student loan borrowers are waiting for the courts to decide if their repayment plan is legal, while another 9 million are late on their payments and may be plunging toward default.\" loading=\"lazy\"\/><\/picture><\/a>         <\/p>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5638567-101\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>The department also said student loan borrowers would have &#8220;a limited time to select a new, legal repayment plan.&#8221; Borrowers will have to choose between two types of plans: 1.) <a href=\"https:\/\/studentaid.gov\/manage-loans\/repayment\/plans#fixed\" target=\"_blank\">fixed payment plans<\/a> or 2.) plans with <a href=\"https:\/\/studentaid.gov\/manage-loans\/repayment\/plans#income-driven\" target=\"_blank\">payments based on a borrower&#8217;s income<\/a>.<\/p>\n<p>The <a href=\"https:\/\/www.npr.org\/2025\/07\/24\/nx-s1-5477646\/student-loan-repayment-forgiveness-trump\" target=\"_blank\">two new plans<\/a> created by Republicans&#8217; One Big Beautiful Bill Act (OBBBA) will roll out<strong> <\/strong>in July 2026, and will include a revised standard plan and a new income-driven plan called the Repayment Assistance Plan. Though SAVE borrowers will likely be expected to change plans before then.<\/p>\n<aside id=\"ad-secondary-wrap\" class=\"ad-wrap secondary\" aria-label=\"advertisement\">\n<\/aside>\n<p>The SAVE plan&#8217;s days were already numbered. Under the OBBBA, borrowers would have had to change plans by July 1, 2028. Tuesday&#8217;s news would move that deadline up, though the administration has not provided a timeframe for the changes.<\/p>\n<p>If the proposal is approved by the court, transitioning millions of borrowers to other plans will be a Herculean feat for loan servicing companies that handle day-to-day loan operations.<\/p>\n<p>&#8220;It&#8217;s gonna be bumpy,&#8221; says Scott Buchanan, head of the Student Loan Servicing Alliance. &#8220;Remember, SAVE borrowers have not been in repayment for years. They&#8217;re gonna have a ton of questions and will need a ton of hand-holding to get back into repayment.&#8221;<\/p>\n<p>The settlement arrives as millions of borrowers are struggling to keep up with their payments.<\/p>\n<p>&#8220;We are sitting on the precipice of millions of borrowers defaulting on their loans,&#8221; says Persis Yu, of Protect Borrowers. &#8220;And instead of choosing to defend a plan that would have been affordable for these borrowers, this Department of Education has capitulated to the AGs and is going to make life much more expensive.&#8221;<\/p>\n<p>The American Enterprise Institute, AEI, <a href=\"https:\/\/www.aei.org\/education\/new-student-loan-data-show-a-historic-spike-in-borrowers-falling-behind\/\" target=\"_blank\">recently published an analysis<\/a> of the latest federal student loan data: In addition to the 5.5 million borrowers who are currently in default, another 3.7 million are more than 270 days late on their payments and<strong> <\/strong>on the edge of default. Another 2.7 million borrowers are in the earlier stages of delinquency. In all, some 12 million borrowers are worryingly behind.\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.npr.org\/2025\/12\/09\/nx-s1-5638567\/save-plan-student-loan-settlement\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Department of Education announced Tuesday that it had reached a proposed settlement agreement to end a popular, yet controversial Biden-era student loan repayment plan. The Saving on a Valuable Education plan, better known as SAVE, was the most flexible and generous of all income-driven repayment plans, promising expedited loan forgiveness and monthly payments &#8230; <a title=\"Proposed settlement would end SAVE student loan repayment plan : NPR\" class=\"read-more\" href=\"https:\/\/www.jubi24.com\/?p=13265\" aria-label=\"Read more about Proposed settlement would end SAVE student loan repayment plan : NPR\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-13265","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/13265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13265"}],"version-history":[{"count":0,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/13265\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}