Education Secretary Linda McMahon announced a significant shift in student loan repayment policy during a press briefing on November 20, 2025, as the Department of Education moves to terminate the Saving on a Valuable Education (SAVE) plan, which benefited over 7 million borrowers. This proposed agreement, reached in conjunction with the state of Missouri, marks a notable step in the Trump administration’s efforts to roll back student loan forgiveness initiatives initiated by the Biden administration.
Under the Biden administration, the SAVE plan was promoted as a means to provide financial relief for those earning $16 an hour or less, assisting borrowers by offering $0 payments and protecting them from excessive interest rates. However, McMahon and her allies in the Trump administration argue that the plan represents a form of federal overreach and financial irresponsibility, asserting, “The law is clear: if you take out a loan, you must pay it back.”
The backlash against Biden’s student loan reforms has been consistent, with several Republican-led states, including Missouri, challenging the SAVE plan in court. A federal appeals court had previously blocked the plan in 2024, signaling mounting legal pressure against the administration’s approach to student debt relief. The proposed settlement with Missouri is anticipated to conclude these legal disputes.
Critics of the termination are expressing concern about the implications this decision carries for borrowers. Advocates worry that those enrolled in the SAVE plan will face increased monthly payments and potentially jeopardize their progress towards loan forgiveness. Michele Zampini, from The Institute for College Access & Success, cautioned that this change could lead to financial hardship for many. Moreover, Persis Yu of Protect Borrowers criticized the settlement as an act of concession that disproportionately impacts working individuals burdened by student debt.
While the Trump administration’s proposed legislation, the One Big Beautiful Bill Act, seeks to eliminate current student loan repayment methods for loans issued after July 1, 2026, it suggests a broader reformation of how student loans are managed. This plan includes replacing the existing frameworks with a standard repayment plan and introducing a new income-based repayment option known as the Repayment Assistance Plan (RAP).
As the landscape of student loans continues to evolve, the focus remains on finding a balance between holding borrowers accountable and providing necessary relief to those who face challenges in repayment. With changes on the horizon, it is crucial to monitor the effects these policies will have on the millions of Americans navigating student debt.