The SAVE plan is gone. Here's what student loan borrowers need to do next.

Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.

The Eighth Circuit Court of Appeals has put an end to a legal challenge of the SAVE student loan repayment plan and instructed a district court to approve a proposed settlement between the Trump administration and the state of Missouri that would end the program.

With this judgment, the SAVE plan will be permanently eliminated. The plan, created during the Biden administration, offered borrowers the lowest monthly payments of any federal student loan repayment option.

More than 7 million people enrolled in SAVE have already been in forbearance for a year and a half while the legal battle continued, and these borrowers will soon need to transition to other repayment options.

The SAVE plan, an income-driven student loan repayment program, was introduced by the Biden administration in 2023 as a way to make payments more manageable for borrowers by reducing monthly payments based on income and family size. It also aimed to prevent loan interest from skyrocketing for borrowers with lower monthly payments and fast-tracke

Fuente original: Yahoo Finance (https://finance.yahoo.com/personal-finance/student-loans/article/the-save-plan-is-gone-heres-what-student-loan-borrowers-need-to-do-next-164707573.html)