The Trump administration delivered the final blow to Biden’s SAVE student loan program, ending what officials called an illegal $342 billion taxpayer-funded scheme that violated congressional authority.
Story Highlights
- Trump administration reaches settlement to permanently end Biden’s SAVE student loan program
- Missouri and six other states successfully challenged the plan as unconstitutional federal overreach
- Program would have cost taxpayers $342 billion over ten years while misleading borrowers
- Over 7.6 million borrowers must now transition to legally compliant repayment plans
Trump Administration Kills Unconstitutional SAVE Program
The Department of Education and Missouri reached a settlement agreement on Tuesday to permanently dismantle Biden’s Saving on a Valuable Education plan. The proposed settlement prohibits new enrollments, denies pending applications, and forces all current SAVE borrowers into legally authorized repayment options.
Under Secretary Nicholas Kent emphasized that Biden’s administration “unlawfully shifted student loan debt onto American taxpayers” for political gain, violating fundamental principles of personal responsibility and limited government.
We’re putting the final nail in the coffin for the Biden Administration's illegal SAVE Plan.
For four years, they unfairly strung borrowers along, making promises that could never be kept. pic.twitter.com/N9oFuljvbx
— U.S. Department of Education (@usedgov) December 9, 2025
Missouri Leads Constitutional Challenge Against Federal Overreach
Missouri Attorney General Catherine Hanaway spearheaded the legal battle that exposed the SAVE program’s constitutional violations. Her office argued that unilaterally saddling taxpayers with student debt ignored congressional authority and represented egregious federal overreach.
The multi-state lawsuit, filed in spring 2024, prompted federal courts to block key provisions of the program. Missouri’s victory demonstrates how state governments can effectively challenge unconstitutional federal policies that burden hardworking Americans with others’ financial obligations.
Biden’s Deceptive Scheme Misled Millions of Borrowers
The Trump administration revealed that Biden “misled” millions of borrowers with false promises of extremely low monthly payments, often as little as zero dollars. This deceptive marketing encouraged irresponsible borrowing while creating unrealistic expectations about debt forgiveness.
The program essentially functioned as a wealth transfer from taxpayers who never attended college or responsibly paid their loans to those seeking government bailouts. Such policies undermine personal accountability and create moral hazard by rewarding financial irresponsibility with taxpayer-funded relief.
Courts Validate Constitutional Concerns Over Taxpayer Burden
Federal courts consistently ruled against the SAVE program throughout 2024 and 2025, validating conservative concerns about executive overreach. The 8th Circuit Court halted the entire plan in February 2025, forcing the resumption of interest payments and exposing the program’s legal weaknesses.
By July, over 7.6 million borrowers faced restarting interest payments as federal officials warned of the transition to compliant repayment plans. The legal victories demonstrate that constitutional principles and taxpayer protections remain enforceable against partisan political schemes.
Restoration of Personal Responsibility and Rule of Law
The settlement’s approval will mark the definitive end of Biden’s student loan forgiveness agenda, restoring the fundamental principle that borrowers must repay their debts. Under Secretary Kent emphasized that “the law is clear: If you take out a loan, you must pay it back.”
This restoration of personal responsibility protects taxpayers from bearing the burden of others’ educational choices while ensuring that government programs operate within constitutional boundaries.
The Trump administration’s decisive action demonstrates commitment to fiscal responsibility and limited government principles that protect hardworking Americans from unconstitutional wealth redistribution schemes.
