The U.S. Department of Education announced Tuesday that it had reached a proposed settlement agreement to end a popular, yet controversial Biden-era student loan repayment plan. The Saving on a Valuable Education plan, better known as SAVE, was the most flexible and generous of all income-driven repayment plans, promising expedited loan forgiveness and monthly payments as low as $0 for low-income borrowers. Republican state attorneys general, led by Missouri, sued the Biden administration, arguing in court that SAVE was too generous. The legal challenges put all SAVE borrowers in limbo for months, during which they were not required to make payments on their loans – even after many had already spent years in a pandemic payment pause. Interest resumed accruing on SAVE loans in August. “The law is clear: if you take out a loan, you must pay it back,” Under Secretary of Education Nicholas Kent said in a statement announcing the proposed agreement. “Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies.” Tuesday’s agreement, pending court approval, would end the…Read more