The Trump administration announced it will end the Biden-era SAVE student loan repayment plan as part of a legal settlement, affecting millions of borrowers.

The plan, launched in 2023, reduced monthly payments for low-income borrowers and prevented interest from growing, but had faced lawsuits from GOP-led states claiming it was unlawful.

Under the settlement, no new borrowers will be admitted, current applications will be denied, and existing participants will be moved into other repayment plans.

Critics warn that ending SAVE will increase financial strain and confusion for borrowers who already face rising loan balances and economic uncertainty, CNN has reported.

The decision comes amid broader changes to student loan rules, including new caps on borrowing and fewer repayment options introduced during President Trump’s second term.