The Trump administration is ending the Biden-era SAVE student loan repayment program that helped more than 7 million borrowers reduce or eliminate monthly payments. Under a settlement with Missouri, the Department of Education will stop new enrollments and require current participants to find new repayment plans if a court approves the deal. Millions of borrowers face higher payments and a shift back into repayment.
00:00The Trump administration is moving to end the Saving on a Valuable Education, or SAVE, student loan repayment program that was introduced under the Biden administration.
00:09The SAVE plan helped more than 7 million borrowers by lowering monthly payments based on income and family size, with many paying as little as $0.
00:18Under a new agreement with the state of Missouri, the Department of Education announced it will stop enrolling new borrowers and give current participants a limited time to find another repayment plan if,
00:29the court approves the deal. Officials say the plan was too costly and exceeded legal authority,
00:34and borrowers may now have to transition to other income-driven or standard repayment options.
00:40The Education Department says it will help people select a new plan, but millions could see their monthly payments increase and be required to restart repayment.
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