Story perspectives

Trump Administration Aims to Scrap SAVE Plan for 7M Borrowers

12/12/2025

Summary

Story summary

U.S. President Donald Trump’s administration proposed a settlement with Missouri to terminate the Saving on a Valuable Education (SAVE) plan, affecting over 7 million borrowers.
Education Secretary Linda McMahon described the program as 'illegal' and said terminating it would have cost taxpayers $342 billion.
Current SAVE borrowers must transition to new repayment plans once the settlement is approved.
Repayment Assistance Plan (RAP) is expected to launch by July 1, 2026.

History

Historical Context

The U.S. Department of Education launched Income-Driven Repayment (IDR) plans in 2015 to assist over 7 million borrowers with student debt. The proposed termination of the SAVE plan by President Trump's administration highlights ongoing debates about federal education funding, with potential costs estimated at $342 billion, impacting borrowers' financial stability and access to education.

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Story summary

U.S. President Donald Trump’s administration proposed a settlement with Missouri to terminate the Saving on a Valuable Education (SAVE) plan, affecting over 7 million borrowers.
Education Secretary Linda McMahon described the program as 'illegal' and said terminating it would have cost taxpayers $342 billion.
Current SAVE borrowers must transition to new repayment plans once the settlement is approved.
Repayment Assistance Plan (RAP) is expected to launch by July 1, 2026.

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