Student Loans and Higher Education Policy

A federal district court judge on Tuesday formally vacated the Biden‑era Saving on a Valuable Education (SAVE) income‑driven repayment rule, ending years of legal limbo and forcing millions of federal student loan borrowers on the plan to move to other repayment options. The lawsuit was originally brought by Republican state attorneys general under former President Joe Biden; after President Donald Trump took office, his administration stopped defending the rule and agreed to a settlement, leading the judge—after an appeals court’s intervention—to strike the regulation. During the court fight, borrowers on SAVE were placed into forbearance with no monthly payments but have been accruing interest since August 2025, meaning many will now reenter repayment owing more and facing higher monthly bills under less‑generous income‑driven plans. Education Department Under Secretary Nicholas Kent said the agency will issue guidance in the coming weeks on how affected borrowers can transition into "legal" repayment plans, but experts warn timelines and default placements if borrowers fail to act remain unclear. Financial advisors are urging borrowers to immediately log in to studentaid.gov and their servicer accounts, update contact information, and use the loan simulator to compare alternative plans while they wait for official instructions.