Education Dept tells student loan borrowers to exit Biden’s ‘illegal’ SAVE plan by summer’s end

The Department of Education issued guidance Friday for millions of student loan borrowers still enrolled in the Biden administration’s “Saving on a Valuable Education” (SAVE) plan, telling them to leave the program by the end of summer. Biden’s Education Department enacted the SAVE plan in the wake of a Supreme Court decision that ruled that he could not unilaterally cancel student debt without an act of Congress. Another court ruled the SAVE plan was also unlawful.
The Department of Education said 7.5 million borrowers are still enrolled in the program, but they must all enroll in an alternative repayment plan, including one of the Trump administration’s alternative plans, by Sept. 29.
“Today’s guidance, which every borrower enrolled in the defunct SAVE Plan will receive over the next week, puts the Biden Administration’s illegal student loan bailout agenda to rest once and for all,” Under Secretary of Education Nicholas Kent said in a statement. 
“For years, borrowers have been caught in a confusing cycle of uncertainty, but the Trump Administration’s policy is simple: if you take out a loan, you must pay it back,” he continued. ”
He also said borrowers currently enrolled in the illegal SAVE Plan will be given at least 90 days to enter a legal repayment plan of their choice.
One of the alternative options for repaying student loans includes the Trump administration’s Repayment Assistance Plan, which sets up a monthly repayment method that is based on the number of the individual’s dependents and their income.
Another alternative option is the Tiered Standard Plan, which will offer fixed terms for repayments based on the borrower’s total outstanding loan balance. The terms are divided into 10, 15, 20, or 25 years.
Student loan borrowers should receive information about ending their enrollment in the SAVE plan and switching to another plan by July 1. 
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage. 

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