Millions of student loan borrowers on SAVE plan will soon need to find a new repayment option

Video above: Federal student loan caps for certain programs become divisive in Washington. Aired May 14, 2026.

(NEXSTAR) – Federal student loan borrowers who have spent years benefiting from the Biden-era Saving on a Valuable Education plan – better known as the SAVE plan – will soon need to find a new repayment option.

In December, the Department of Education announced it had reached an agreement with Missouri to end the SAVE plan established in 2023 under the Biden administration. At the time, more than 7 million federal student loan borrowers were enrolled in the plan.

As part of the SAVE plan, which considered a borrower’s income and family size, some borrowers had monthly payments as low as $0. It was intended to make repaying student loans more affordable, but it quickly faced pushback.

An appeals court blocked the SAVE plan last year, ruling in favor of seven Republican-led states that argued the Education Department under the Biden administration exceeded its authority by implementing the plan. Missouri, where student loan servicer MOHELA is based, was among the states leading the charge against the repayment plan.

Payments for those on the SAVE plan have been paused since July 2024 due to legal challenges, though interest has been accruing since August 2025.

What happens to SAVE plan borrowers on July 1?

On........

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