The Trump administration just dropped a bombshell on Biden’s student loan experiment with a proposed settlement that could bury it for good.
On Tuesday, December 9, 2025, according to Fox Business, the Trump team announced a deal with the State of Missouri to dismantle the Biden-era Saving on a Valuable Education (SAVE) plan, aiming to halt new enrollments, reject pending applications, and shift current borrowers into legally sanctioned repayment options.
Let’s rewind to 2023, when the Biden administration rolled out the SAVE plan with much fanfare, promising low or even zero-dollar monthly payments to struggling borrowers. The following year, key forgiveness elements kicked in, wiping out debt for hundreds of thousands. But not everyone was cheering—critics saw it as a taxpayer-funded handout.
In the spring of 2024, Missouri, joined by six other states, launched a lawsuit against the SAVE plan, arguing it overstepped federal authority. A federal judge soon blocked portions of the program, throwing a wrench into the works. The Biden administration’s response? Place millions into a 0% interest forbearance limbo.
By February 2025, the 8th Circuit Court of Appeals slammed the brakes on the entire SAVE initiative, restarting interest accrual and sending the case back to the district court. Things got uglier in July 2025, when federal officials warned over 7.6 million borrowers that interest would resume on August 1, urging them to switch to compliant repayment plans. It was a bureaucratic mess, plain and simple.
Fast forward to the latest move: the Trump administration’s proposed settlement with Missouri, which, if a court gives the green light, will officially end the SAVE plan. No more new sign-ups, no more pending approvals—just a hard stop. Current borrowers? They’ll get a short window to pick a new repayment path and start paying up.
The Trump administration isn’t mincing words, accusing Biden’s team of misleading borrowers with pie-in-the-sky promises while sticking taxpayers with a whopping $342 billion tab over a decade. That’s a hefty price for a policy they argue was never legally sound.
“For four years, the Biden administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing administration,” said U.S. Department of Education Under Secretary Nicholas Kent. Let’s unpack that: forcing folks who never signed up for college debt to foot the bill reeks of unfairness, not progress.
“The Trump administration is righting this wrong and bringing an end to this deceptive scheme,” Kent added. And isn’t it about time? Policies should stand on legal ground, not political quicksand.
Missouri Attorney General Catherine Hanaway didn’t hold back either, praising the outcome of their persistent legal fight. “Our office fought for hardworking Americans who were being preyed upon by Biden administration bureaucrats, and we won in court every time,” she declared. That’s a sharp jab at a policy many saw as a backdoor bailout for elite degrees.
Hanaway also tipped her hat to the current administration’s approach. “We appreciate President Trump’s real, long-term solutions instead of illegal student loan schemes,” she said. It’s a nod to prioritizing fiscal responsibility over flashy, questionable giveaways.
Critics of SAVE have long argued it ignored congressional oversight, a point the lawsuits hammered home. Taxpayers, many of whom scrimped and saved to avoid debt, shouldn’t be on the hook for someone else’s choices, no matter how sympathetic the cause. It’s a tough pill, but fairness matters.
For the millions enrolled in SAVE, the clock is ticking if this settlement gets court approval. They’ll need to navigate a transition to other repayment plans, likely with less generous terms. Empathy is due here—student debt is a real burden, but solutions must respect the rule of law.
The saga of the SAVE plan underscores a broader clash over who pays for higher education in America. While some saw it as a lifeline, others viewed it as a slap to those who played by the rules. The Trump administration’s move signals a hard pivot back to accountability.
As this proposed settlement awaits a judge’s gavel, one thing is clear: the days of sweeping debt relief without congressional backing may be numbered. Borrowers and taxpayers alike deserve clarity, not chaos. Let’s hope the next chapter balances compassion with common sense.
