Florida Congressman Maxwell Alejandro Frost (D) slammed the Trump administration for planning to end the Saving on a Valuable Education (SAVE) Plan.
The SAVE Plan is a Biden-backed student loan payment program that allows enrollees to make payments towards their student loans based on income, $0 payments for low earners, and stops interest rates from growing balances.
“The Trump Administration must really think affordability is a hoax. As the cost of living soars, they’re ending the SAVE plan, a program that has helped 7M borrowers keep payments affordable. We should be helping working people stay afloat, not pushing them further into debt,” Frost shared on X.
The Trump administration proposed a joint settlement with the State of Missouri that will end the program and force borrowers to find a new payment plan.
The proposed settlement would dismiss the SAVE Plan in exchange for the Department of Education agreeing not to enroll any new borrowers in SAVE and to move all borrowers currently in the plan “into legal repayment plans.”
The SAVE plan has been in a legal deadlock. The 8th U.S. Circuit Court of Appeals sided with Republican-led states that argued former President Joe Biden lacked the authority to establish the student loan relief plan.
The GOP argued that the SAVE Plan was an attempt by the Biden administration to circumvent total student debt forgiveness after the Supreme Court blocked his sweeping debt cancellation plan in June 2023.
Consumer advocates also slammed President Trump’s plans, arguing that it would strip borrowers of the most affordable repayment plan and drive those borrowers into further debt and potentially bankruptcy.
The Federal Student Aid (FSA) Office will provide support to borrowers currently enrolled in the SAVE plan, helping them find a new payment plan. However, the FSA's Loan Simulator tool will estimate monthly payments, determine repayment eligibility, and select a new plan that best fits those borrowers' needs and goals.
