The US Department of Education has started notifying over 7.5 million federal student loan borrowers enrolled in the now-defunct SAVE repayment plan that they must select a new, lawful repayment option or face automatic enrolment in a standard plan. The guidance follows a court-approved settlement that formally ended the Biden-era Saving on a Valuable Education (SAVE) programme after repeated legal challenges found it unlawful, the Department of Education confirmed.
Under Secretary of Education Nicholas Kent addressed the situation at the American Enterprise Institute last week. 'What we have been trying to do is explain to borrowers that loan forgiveness is not happening,' he said. 'Not paying your loans is no longer an option, especially under this administration.'
