The Trump administration has officially ended the Biden-era SAVE student loan plan, blocking 460,000 borrowers from accessing what critics called an unsustainable handout.
The decision marks a clear return to fiscal responsibility, as the Department of Education halts all applications tied to the SAVE program, deeming it illegal and withdrawn from consideration.
Biden’s Plan Rejected as Unlawful
Introduced under President Joe Biden, the SAVE Plan—Saving on a Valuable Education—sought to cap monthly payments at 5% of discretionary income for undergraduates and 10% for graduate borrowers.
Promoted as “relief” for low- and middle-income earners, the program drew sharp criticism for its massive long-term cost and lack of legal authority. In 2024, a federal court blocked the plan, ruling it exceeded executive authority.
Now, the Trump administration has made the ruling permanent, ending SAVE and denying new income-driven repayment applications tied to the now-defunct program.
460,000 Borrowers Denied
According to internal Department of Education documents, approximately 460,000 student loan borrowers who applied for relief under the SAVE program have been officially denied access to lower payments.
Interest is set to resume next month for millions more, as Biden-era policies are rolled back and replaced with a new system.
Trump’s “One Big Beautiful Bill” Reshapes Student Loans
As part of the One Big Beautiful Bill, signed by President Trump on July 4, 2025, the student loan system is undergoing a historic overhaul:
Eliminates SAVE, PAYE, IBR, and ICR
Introduces two simple repayment plans:
• A standard 10-year repayment plan
• A new Repayment Assistance Plan (RAP) — capping payments at 1–10% of income for up to 30 years
Caps Graduate and Parent PLUS Loans at $65,000 total
The new system aims to end abuse, rein in borrowing, and protect taxpayers from runaway costs.
