8th Circuit orders approval of settlement to end SAVE plan

The 8th Circuit directed a district court to approve President Donald Trump's proposed settlement to eliminate the SAVE student-loan repayment plan. The move comes just days after a lower court declined to approve the settlement. The Education Department said enrolled borrowers will receive clear guidance on next steps.

Nicholas Kent, the undersecretary of education, said: "In the coming weeks, the Department will issue clear guidance on next steps for borrowers enrolled in the illegal SAVE Plan, including details regarding how borrowers can move into a legal repayment plan." The settlement would give borrowers "a limited time" to select a new repayment plan and begin repaying the loans.

Once the settlement is approved, the department will not enroll any new borrowers in SAVE, will deny pending applications, and will move all enrolled borrowers to existing plans. Advocates warned the ruling will push borrowers into unaffordable monthly payments.

United States

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