Summary
A new agreement has stopped the U.S. Department of Education's SAVE plan, which helped with student loan forgiveness after 20 or 25 years of repayment. This deal also restricts future student loan forgiveness efforts for the next 10 years and gives Missouri special rights to challenge large forgiveness actions.
Key Facts
- The SAVE plan, which helped reduce monthly student loan payments, will end under the new agreement.
- The U.S. Department of Education will face limits on its ability to offer student loan forgiveness for the next decade.
- Missouri can review and challenge any student loan forgiveness if it exceeds $10 billion in a month for the next 10 years.
- The planned changes are still waiting for court approval.
- The settlement will require the Department of Education to notify Missouri of any large forgiveness actions before they happen.
- The agreement could impact student loan forgiveness efforts during and beyond President Donald Trump's term.
