WASHINGTON, D.C. — A federal district court on Friday dismissed Missouri v. Trump and refused to approve a proposed settlement that would have dismantled the Saving on a Valuable Education (SAVE) student loan repayment plan. As a result of the dismissal, the injunction that kept millions of borrowers from making payments under SAVE has been lifted, and those enrolled can now access the plan’s full benefits.
In response, Nadine Chabrier, senior policy & litigation counsel at the Center for Responsible Lending (CRL), issued the following statement:
This decision is a significant victory for millions of low-income borrowers who have endured years of uncertainty and unnecessary delay. At a time when families are struggling to afford housing, food and other basic necessities, eliminating SAVE would have pushed vulnerable borrowers into an unmanageable cycle of debt. This ruling prevents an abrupt and devastating spike in monthly student loan bills and makes clear that borrowers’ rights cannot be undone through procedural shortcuts or closed-door agreements.
The Department of Education must now act swiftly to restore SAVE’s benefits, identify borrowers eligible for cancellation and ensure servicers implement the program fairly and transparently. Working families deserve financial stability, not continued uncertainty.
Additional Background
The SAVE plan was established by the U.S. Department of Education in 2023 and described it as the most affordable federal student loan repayment plan ever created. SAVE lowered monthly payments for millions of borrowers, prevented balances from growing due to unpaid interest and provided a faster path to cancellation. More than 8 million borrowers enrolled in the plan and millions qualified for low or $0 monthly payments.
In 2024, several states sued to block the rule, and a federal court issued an injunction that prevented borrowers from accessing SAVE’s full benefits, leaving enrolled borrowers in limbo.
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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org