Agreement Reached to End the SAVE Program

The Department of Education announced a settlement agreement with the State of Missouri that would end the long-running court case over the Saving on a Valuable Education (SAVE) income-driven repayment plan. Under the terms of the agreement, the Department would move all student loan borrowers enrolled in SAVE to other repayment plans and eliminate the program entirely once the negotiated rulemaking process has been completed.

Under the agreement, which still needs to be approved by the courts, the Department would also agree to:

• Never forgive student loan debt through the income-contingent repayment plan; and
• A 10-year period during which it would send written notice to the State Attorney General of Missouri in the event the agency ever plans to or has reason to believe it will forgive at least $10 billion in student loan debt in a one-month period.

The Department will provide more information to student loan borrowers in the coming months.

For more information, please contact:
Justin Monk