Student Loans Must Be Forgiven And Cannot Be Kicked Off SAVE Plan, Says Amended Lawsuit Student loan borrowers have filed an amended lawsuit against the U.S. Department of Education, arguing that the agency’s plan to terminate the SAVE repayment program and force borrowers into other repayment options is unlawful. The lawsuit contends that qualifying SAVE plan borrowers should receive loan forgiveness or be transferred to the REPAYE plan, rather than being subjected to other repayment methods. This legal challenge arises as the Education Department prepares to transition millions of borrowers out of the SAVE plan starting in July, following a settlement that ended both SAVE and its predecessor, REPAYE. The department has sought to dismiss the lawsuit, asserting that the termination of these programs is final and that current law no longer authorizes them. Despite the ongoing legal battle, borrowers are advised to prepare for selecting new repayment plans, as the department’s timeline for transitioning out of SAVE remains unchanged. The lawsuit, filed by four student loan borrowers, argues that the Education Department’s handling of the SAVE plan’s termination was unlawful. The plaintiffs concede that Congress authorized the termination of SAVE in legislation passed last year, which also phases out other income-driven repayment plans like PAYE and ICR. However, the legislation does not mandate the termination of these programs until 2028. The plaintiffs assert that because there was a period during the litigation when SAVE was not blocked, borrowers who qualify should still be eligible for the program’s benefits, including student loan forgiveness if they met the 20- or 25-year threshold.#save_plan #linda_mcmahon #us_department_of_education #repaye_plan #eighth_circuit_court_of_appeals
