The SAVE plan is dead, so what does that mean for your student?

A federal court just ended the SAVE plan. What options remain for the more than 7 million affected borrowers?

After a long court battle, the SAVE plan is officially kaput.

Launched in 2023, the Biden administration’s Saving on a Valuable Education (SAVE) federal student loan repayment plan was created to replace the outgoing REPAYE program–and help keep Biden’s campaign promise to forgive student loans.

Under the SAVE plan, a borrower’s monthly payment would be calculated based on income and family size and could be set as low as $0 per month for the lowest-earning borrowers. The program also fast-tracked forgiveness for those who borrowed less than $12,000.

Several states sued the Biden administration in 2024, arguing that the SAVE plan exceeded the administrative branch’s statutory authority. Payments were paused for borrowers enrolled in the SAVE program during the litigation process, but interest began accruing on the loans as of August 2025.

The Eighth Circuit Court of Appeals decision on March 10 officially ended the SAVE plan for good–and borrowers are left with the less-than-reassuring message that they can expect “clear guidance” from the Department of Education in the coming weeks.

To get some direct answers about what student loan borrowers should do about the end of the SAVE program, I talked to student loan expert and author Mark Kantrowitz. Here’s what you need to know.

Stick a fork in it – SAVE is done

Some of the reporting about the end of the SAVE plan has included information about the Havens v. U.S. Department of Education (ED) lawsuit which was filed hours before the Eighth Circuit Court’s decision. This lawsuit argues that the ED is compelled to implement the SAVE plan.

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