WASHINGTON, D.C. — Yesterday, the U.S. Court of Appeals for the Eighth Circuit directed a lower court to enter a settlement that would dismantle the Saving on a Valuable Education (SAVE) repayment plan, an affordable student loan program designed to keep payments manageable and prevent balances from growing due to unpaid interest.
The decision marks a sharp reversal from earlier proceedings in Missouri v. Trump, where courts had previously allowed the program to remain in place.
In response, Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending, issued the following statement:
We are deeply concerned that the court went beyond the appellant’s request and moved to dismantle a program of this scale without a full judicial review. As a result of this action, nearly eight million people will see their costs climb. This outcome is unacceptable at a time when working families already face skyrocketing energy prices and a rising cost of living that is deepening the national affordability crisis.
Student loan policy should expand opportunity, not pull the rug out from Americans who relied on strong borrower protections and relief. Moreover, ending affordable repayment options through a backroom settlement not only places millions of families under unnecessary financial strain, but it also raises serious concerns about transparency and fairness.
We urge policymakers and federal agencies, including the U.S. Department of Justice and the Department of Education, to provide clear guidance and strong student borrower protections during this period of uncertainty. Borrowers deserve transparency, workable repayment options and a student loan system centered on fairness and long-term financial security.
Additional Background
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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org