Published March 10, 2026, 10:00 p.m. EDT
Income-Driven Repayment and Upcoming PAR Program Offer Alternatives as SAVE Plan Officially Ends A federal appeals court on Monday formally finalized the end of Saving on a Valuable Education (SAVE), the Biden program that dramatically lowered repayment rates for millions of student loan borrowers.
The ruling, issued by the 8th U.S. Circuit Court of Appeals, overturns a lower court’s dismissal in February of a Republican-led legal challenge to the SAVE plan. This ruling was issued by Judge John Ross of the U.S. District Court for the Eastern District of Missouri.
Originally introduced in 2023 under former President Joe Bidenthe SAVE plan has been hailed as the “most affordable repayment plan ever created” for federal student loan borrowers. The program was the first and only plan in history that prevented balances from growing by subsidizing 100% of all unpaid monthly interest.
More than 7 million student loan borrowers would have remained enrolled in the SAVE plan from the fourth quarter.
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President Joe Biden speaks at the Pieper-Hillside Boys & Girls Club in Milwaukee, Wisconsin on March 13, 2024. (Alex Wroblewski for the Washington Post via Getty Images) / Getty Images)
Student loan borrowers enrolled in the SAVE plan have been asked to consider switching to a new repayment program.
Among alternative options, the Income-Based Repayment (IBR) plan sets monthly payments at 10% to 15% of discretionary income over a period of 20 to 25 years.
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Student loan borrowers are urged to seek alternative repayment plans following Monday’s decision. (iStock/iStock)
Under the Big Beautiful Bill Act (OBBBA), passed last year under President Donald Trumpthe Repayment Assistance Plan (RAP) will be available beginning July 1, 2026. The RAP uses a sliding scale of 1% to 10% of a borrower’s total adjusted gross income (AGI) and requires 30 years of payments for all participants.
Borrowers seeking Public Service Loan Forgiveness (PSLF), a federal program that forgives remaining student debt after 10 years of qualifying public service, should verify their eligibility and file a credit recovery application for months when their SAVE plan progress was effectively frozen.
Secretary of Education Linda McMahon delivers a speech in front of the American flag. (Darren McCollester/Getty Images)
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Monday’s ruling effectively resolved a years-long legal battle between Republican-led states and the federal government. The decision comes after nearly 8 million borrowers payments suspended under “forbearance from litigation” following an earlier injunction, and it follows a brief period of confusion when a lower court attempted to dismiss the case after a settlement with the Trump administration.