Core Insights - The Department of Education is moving towards shutting down the Saving for a Valuable Education (SAVE) repayment plan due to a joint agreement with the State of Missouri and other states involved in a lawsuit against the plan [1][7] - The SAVE plan, which has been in administrative forbearance since July 2024, has left millions of borrowers unable to make progress towards loan forgiveness [2] - Borrowers currently enrolled in the SAVE plan will need to transition to other repayment plans, likely with less favorable terms [3][4] Department of Education Actions - The Department of Education will no longer accept new applications for the SAVE plan and will deny any pending transfer applications [4] - Over 7.7 million borrowers in the SAVE plan will be transitioned to existing repayment plans, with support provided by the Office of Federal Student Aid [5][7] - Borrowers are encouraged to apply for the Income-Based Repayment (IBR) plan or other income-driven repayment options [5][6] Implications for Borrowers - The transition from the SAVE plan will require borrowers to adapt to potentially less favorable repayment terms [3][4] - The IBR plan will soon expand eligibility to include more types of borrowers, such as those with consolidated Parent PLUS loans [6]