From the Washington Post: The Trump administration... said it has reached an agreement with seven states to resolve a lawsuit challenging the legality of former president Joe Biden’s student loan repayment plan, a deal that could leave millions of borrowers scrambling to find another option to repay their debt. The proposal marks a key moment in the political battle over how to address staggering student loan debt, with liberals saying they want to ease the financial burden for borrowers and conservatives calling that effort fiscally irresponsible and patently unfair to Americans who never went to college. The fight has spawned one lawsuit after another and thrown the entire student loan repayment system into chaos. About 7 million people are now enrolled in the Saving on a Valuable Education program, commonly known as Save, which offers lower monthly payments and a faster path to loan cancellation. They will have a limited time to find a new plan if the U.S. District Court for the Eastern District of Missouri approves the proposed settlement, the Education Department said...
The settlement stems from a lawsuit brought by Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma to overturn Save. Under the agreement, the Education Department must cease enrolling anyone in the Save plan, deny any pending applications and move current enrollees out of the program. The department will convene a panel of experts for a negotiated rulemaking to repeal the Save regulation, which was already part of the tax plan. The settlement calls on the department to notify the Missouri attorney general’s office at least 30 days before canceling more than $10 billion in federal student loans. That provision will expire 10 years after the date of the settlement agreement.
Conservatives and some moderate Democrats have argued that widespread debt cancellation disproportionately benefits students who attend expensive elite colleges and unfairly subsidizes higher education. Graduates of elite schools, however, make up a small share of students with education debt...
Source: https://www.washingtonpost.com/education/2025/12/09/trump-ends-biden-save-student-loan-plan/.
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