Education Department sets deadline for student loan borrowers to get out of SAVE Plan

The Education Department announced Friday that more than 7.5 million student loan borrowers will need to exit the Biden-era Saving on Valuable Education (SAVE) Plan by the end of summer, following a court decision that terminated what had been called the most generous student loan repayment option available in the United States. The announcement creates uncertainty for millions of Americans who had enrolled in the SAVE Plan, which offered significantly reduced monthly payments and faster forgiveness for many borrowers. Beginning July 1, affected borrowers will need to select an alternative repayment plan or risk defaulting on their loans, potentially facing serious financial consequences. The SAVE Plan, introduced by the Biden administration as part of broader efforts to address the nation's $1.7 trillion student debt crisis, had provided substantial relief by calculating payments based on a borrower's income rather than their total loan amount.