Breaking News: Federal Student Loan Overhaul Imminent

The US Department of Education has announced a proposed settlement agreement to end the Saving on a Valuable Education (SAVE) Plan, a popular student loan repayment program. The move comes as part of a broader overhaul of the federal student loan system, set to take effect in 2026.

Millions of borrowers currently enrolled in the SAVE Plan will be affected by the change, with new repayment terms to be implemented. The settlement agreement is expected to impact low-income borrowers the most, who had been paying as little as $0 per month under the SAVE Plan.

The SAVE Plan was introduced by the Biden administration in 2023, offering fast-tracked loan forgiveness and flexible monthly payments. However, the plan was met with opposition from Republican state attorneys general, who sued the administration over its implementation.

As part of the overhaul, the US Department of Education will introduce new borrowing limits and repayment terms, which are expected to be announced in the coming weeks. Borrowers are advised to stay informed and monitor updates from the Department of Education.

This is a developing story, and further details will be provided as more information becomes available.