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By many measures, the SAVE, or Saving on a Valuable Education, student loan plan was defunct. The Biden administration-era affordable repayment plan faced several legal challenges, and Congress voted over the summer to repeal the program.
But Judge John Ross, of the U.S. District Court for the Eastern District of Missouri, dismissed the main lawsuit against SAVE last week.
Consumer advocates say that could give SAVE a second life — albeit a brief one.
“Friday’s ruling was unexpected,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York. “Will they lift the forbearance and allow borrowers to make payments in SAVE? Will they start processing forgiveness in SAVE?”
More than 7 million student loan borrowers remain enrolled in the SAVE plan, as of the fourth quarter, according to the U.S. Department of Education.
Here’s what the development could mean for borrowers.
It’s unclear how the Trump administration will respond
The Biden administration introduced the SAVE plan in 2023, billing it as “the most affordable repayment plan ever created.” Under the program, many borrowers expected to see their monthly bills cut in half. But Republican-led legal challenges quickly put the plan on ice.
After Friday’s ruling, consumer advocates issued statements calling on the Education Department to restore access to SAVE’s benefits for student loan borrowers.
“The court has given the Department a golden opportunity to do right by people struggling with the staggering cost of living and crippling student loan debt,” said Abby Shafroth, managing director of advocacy at the National Consumer Law Center.
However, it remains unclear how the Education Department will respond to the ruling. The agency did not respond to multiple requests for comment.
There are several next steps Trump officials could take, said higher education expert Mark Kantrowitz: They could appeal the decision, start the rulemaking process to formally end the SAVE plan or allow borrowers to make payments under the program until July 1, 2028, its expiration date in recent legislation.
“Given how the opposition to SAVE is ideological, the last option is very unlikely,” Kantrowitz said.
Borrowers should still look for other options
Despite SAVE’s recent court victory, President Donald Trump’s “big beautiful bill” phases out the plan as of July 1, 2028. At that point, student loan borrowers will, without question, not have access to SAVE.
As a result, experts say, most borrowers are best off looking for another repayment plan as soon as possible. Student loan borrowers who remain in the SAVE forbearance have been charged interest on their debt since August. Borrowers in that payment pause also aren’t getting any credit toward loan forgiveness.
The Biden administration put borrowers who enrolled in its plan in this forbearance amid the legal battles, and Trump officials have yet to force people out of the reprieve.
The best choice for many borrowers seeking another affordable repayment option is the Income-Based Repayment plan, or IBR, experts said.
Under the terms of IBR, borrowers pay 10% of their discretionary income each month — and that share rises to 15% for certain borrowers with older loans. Debt forgiveness is supposed to come after 20 years or 25 years, depending on when you took out your loans. Older loans are subject to the longer timeline.
Starting on July 1, 2026, borrowers will also have access to a new option to pay down their debt, called the Repayment Assistance Plan, or RAP.
Under RAP, monthly payments will typically range from 1% to 10% of your earnings; the more you earn, the bigger your required payment. RAP leads to student loan forgiveness after 30 years, compared with the typical 20-year or 25-year timeline on other plans.
There’s no rush to decide. Advocates say some borrowers may want to see if they can make payments on SAVE.
“If affordability is an issue, it can’t hurt to wait a few weeks to see how this plays out,” Nierman said.