A federal judge on Friday dismissed the Trump administration's request to eliminate the SAVE student loan repayment plan, a ruling that consumer advocates said should restore access, at least for now, to lower monthly payments and faster loan forgiveness for millions of borrowers.
U.S. District Judge John Ross of the Eastern District of Missouri dismissed the multistate lawsuit that had been blocking the Saving on a Valuable Education, or SAVE, federal student loan repayment plan.
The administration's failed bid to block SAVE means borrowers should have access to the program's benefits, at least for now, consumer advocates said.
"As of today, not only is there no legal barrier to delivering those rights through the SAVE plan, but the secretary has a legal obligation to do so," said Winston Berkman-Breen, legal director at Protect Borrowers.
More than 7 million student loan borrowers remain enrolled in SAVE, the Education Department said.
Those borrowers were placed in forbearance during the legal challenges, meaning they did not owe monthly payments.
The Department of Education said interest accrual for borrowers in the SAVE forbearance restarted last Aug. 1 and would not be assessed retroactively.
The court order could be only a temporary reprieve, as it is unclear how the Trump administration would respond, and the plan is already set to phase out on July 1, 2028.
The Biden administration introduced SAVE in 2023, calling it "the most affordable repayment plan ever created."
Republican-led legal challenges put the program on hold as many of its benefits were taking effect.
One of SAVE's central features is a faster timeline to forgiveness than other income-driven repayment plans, which typically offer forgiveness after 20 to 25 years.
Under SAVE, borrowers who originally took out $12,000 or less are eligible to have their loans forgiven after 10 years of monthly payments.
For every $1,000 borrowed above that amount, the repayment period increases by one year, up to 20 years for undergraduate loans and 25 years for graduate loans.
Another hallmark of the plan is an interest benefit that waives unpaid monthly interest above a borrower's scheduled payment.
During President Joe Biden's term, the National Association of Student Financial Aid Administrators reported an Education Department tally of $188.8 billion in approved student debt relief for 5.3 million borrowers.
In the context of the $188.8 billion figure, this means the Department of Education approved cancellation or discharge of the borrowers' federal student loan balances through existing forgiveness and discharge authorities, plus administrative fixes to programs that resulted in balances being forgiven.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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