What the end of the SAVE plan means for millions of student loan borrowers

Core Viewpoint - The Trump administration's proposed settlement with Missouri aims to end the Saving on a Valuable Education (SAVE) plan, significantly impacting millions of student loan borrowers by accelerating the expiration of repayment plans [1][5]. Group 1: SAVE Plan Overview - The SAVE plan, introduced by the Biden administration in 2023, was designed to make student loan payments more manageable by reducing monthly payments based on income and family size, while also preventing excessive loan interest for lower-income borrowers [3]. - Currently, over 7 million borrowers are enrolled in the SAVE plan, with an additional 450,000 interested borrowers affected by the proposed settlement [4]. Group 2: Implications of Termination - The termination of the SAVE plan removes the most affordable repayment option for borrowers, leading to immediate financial impacts as borrowers face an accelerated transition to alternative repayment plans [5]. - The new repayment landscape under Trump's One Big Beautiful Bill will limit new federal loan borrowers to just two repayment options starting July 2026: the standard repayment plan and the new Repayment Assistance Plan [7]. Group 3: Future Considerations for Borrowers - The elimination of the SAVE plan may lead future borrowers to reconsider the suitability of federal student loans, as the changes reduce the attractiveness of federal loans compared to private options [6]. - Borrowers are advised to actively evaluate their repayment options and consider refinancing with private lenders for potentially better terms, although this would mean losing federal protections [11][13].