Is the End Near for Saving on a Valuable Education (SAVE) Plan?

The U.S. Department of Education (ED) and the State of Missouri have announced a proposed joint settlement agreement that would potentially end the Saving on a Valuable Education (SAVE) repayment plan. As part of the proposed agreement, ED agrees it will:

• NOT enroll any new borrowers in the SAVE Plan,
• DENY any pending SAVE applications, and
• MOVE ALL current SAVE borrowers into available repayment plans

In its press release, ED has not set a timeline as to when this will take place, stating in an announcement on StudentAid.gov they will “reach out to SAVE borrowers in the coming months with more information.” The settlement must be approved by the court before implementation and ED will announce when a decision from the courts is made.

Good News for Borrowers in Class Action Lawsuit Sweet v. McMahon

December 11, 2025 – Following arguments during the class action lawsuit Sweet v. McMahon (formerly Sweet v. Cardona and Sweet v. DeVos), a federal judge denied the U.S. Department of Education’s (ED) request for an 18-month extension of a deadline set in the landmark 2022 case. The settlement from the original lawsuit divided borrowers into three groups and the most recent decision applies to the third group of borrowers (Exhibit C schools), over 200,000 borrowers who filed borrower defense claims. Borrowers in that group were promised timely decisions on their cases by ED, or automatic relief would be provided by January 28, 2026. Judge William Alsup has ruled that applications for these borrowers must be adjudicated by the original deadline or be automatically approved. A brief delay extending the deadline until April 15, 2026, was also granted for the remaining post-class applications.

Additional Reading:

Student Aid | Sweet v. McMahon Settlement

The Project on Predatory Student Lending (PPSL) | FAQs for the Sweet v. McMahon Settlement

Bookings is Now Live!

The online appointment portal for the Office of the Student Loan Ombudsperson is now live! Bookmark the link below or head on over to our website at any time to book a dedicated appointment time for the following:

• 15 Minute Phone Call
• 30 Minute Phone Call
• 15 Minute Virtual Meeting
• 30 Minute Virtual Meeting

Webinar Series Coming Soon!

We are excited to announce starting in 2026, our office will be hosting a series of webinars regarding all the upcoming federal student loan changes! Stay tuned to future editions for event date, time, and sign-up information. We’re looking forward to kicking off this informative series!

Happy Holidays!

The Office of the Student Loan Ombudsperson will be closed 12/24/2025 - 12/26/2025 and 12/30/2025 - 1/2/2026. Normal business hours will resume on January 5, 2026.