Federal Appeals Court Ends Student Loan Borrowers' SAVE Plan

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A federal appeals court has ordered the end of the Saving on a Valuable Education (SAVE) plan, the Biden-administration-era student loan repayment program that brought lower monthly bills to millions of borrowers. The U.S. Court of Appeals for the Eighth Circuit reversed a lower court's dismissal of a Republican-led legal challenge against SAVE.

Why it matters

The SAVE plan was introduced by the Biden administration in 2023 as a way to provide more affordable repayment options for student loan borrowers. Its termination will impact millions who had enrolled in the program expecting lower monthly payments.

The details

The Eighth Circuit Court's decision comes after a lawsuit was filed just hours earlier by four borrowers represented by Public Goods Practice, LLP. They argued the Department of Education is compelled to immediately implement the SAVE plan and provide lower payments and loan discharge to eligible borrowers. However, the appeals court ruled in favor of the Republican-led legal challenge, ordering an end to the SAVE program.

• The SAVE plan was introduced by the Biden administration in 2023.
• In February 2026, a lower court dismissed the main lawsuit against SAVE.
• On March 10, 2026, the U.S. Court of Appeals for the Eighth Circuit reversed the lower court's dismissal.

What’s next

The Department of Education will need to take steps to wind down the SAVE plan and notify the millions of borrowers currently enrolled in the program.