Photo: Alamy
President Donald Trump’s Department of Education has effectively killed the Biden-era student loan forgiveness plan, announcing an agreement with the state of Missouri that will bring a close to the $342 billion program.
This week, the DOE announced its agreement with Missouri to end the “Saving on Valuable Education” Plan (SAVE), which represented the Biden administration’s third and final attempt to implement nationwide student loan forgiveness programs.
This proposed settlement with Missouri ensures that no new borrowers will be enrolled in the SAVE program and that no pending applications will be approved. All SAVE borrowers will also be moved into “legal repayment plans.”
Under Secretary of Education Nicholas Kent said in a statement, “The law is clear: if you take out a loan, you must pay it back. 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.”
If the court approves the joint agreement, the SAVE plan will come to a swift end, and SAVE borrowers will have a limited window of time to select a new repayment plan.
Biden’s student loan forgiveness program has been repeatedly challenged in court since its inception and has undergone various iterations as it has continued to draw judicial disapproval.
As reported on RSBN, the U.S. Supreme Court, in a 6-3 ruling, struck down Biden’s initial student loan forgiveness plan in 2023, with Chief Justice John Roberts writing that such a program was not authorized by the HEROES Act (legislation giving the Secretary of Education the power to change or modify student aid rules during national emergencies).
Student loan repayment remains a hot-button issue among many voters, and Republicans have worked lightly in 2025 to address “fiscally unsustainable” federal student loan programs.
Earlier this year, Republicans on the Education and Workforce Committee introduced a 103-page “Student Success and Taxpayer Savings Plan” aimed at streamlining complicated loan plans and potential modifications for those struggling to make payments.
Ultimately, the plan was signed into law by President Trump in July 2025, as part of a larger reconciliation bill, and will take effect in July 2026. This includes provisions like student loan caps, new repayment options, and the expansion of Pell Grant opportunities to short-term programs, according to the American Council on Education.
