Student Loan Forgiveness Is Over
The Biden administration's SAVE student loan repayment plan has been officially dismantled, marking the end of widespread loan forgiveness efforts. Here's what borrowers need to know.
What Happened?
On December 9th, the U.S. Department of Education reached a settlement with Missouri and six other states to dismantle the SAVE plan—the last remnant of Biden-era student debt relief. The courts ruled the plan unconstitutional because it bypassed Congress.
The SAVE plan had:
Allowed borrowers with $12,000 or less to get forgiveness after 10 years
Reduced monthly payments to as low as $0 for millions
Canceled $1.2 billion in debt for 150,000+ borrowers before being halted in spring 2024
If you're in the SAVE program: You'll receive an email about changing your repayment terms. You'll need to enroll in a different repayment plan.
The bottom line: Loan forgiveness is not coming. It's time to pay off your loans.
Federal loan repayment is returning to traditional plans. The new administration is expected to aggressively pursue defaulted loans. Don't let interest pile up—some borrowers have seen loans grow from $12,000 to $50,000 due to accumulated interest.
Traditional forgiveness options still exist:
Public service/government work
Peace Corps service
Teaching in underprivileged areas
But mass loan cancellation is off the table.
Take Action!
Set up a payment plan with the Department of Education
Start making payments—typical direct loans run $250-$300/month
Don't wait for forgiveness that isn't coming
Protect your credit score
The law is clear: If you take out a loan, you must pay it back. The sooner you start, the less interest you'll pay over time.