"It appears that there is no longer a live case or controversy sufficient to authorize the Court to enter a judgment on the merits. Federal law allows courts to exercise jurisdiction only over cases or controversies, which does not exist in this case because both the Department of Education and Missouri have agreed on the outcome they're seeking without debate."
"President Donald Trump's spending legislation called for phasing out SAVE by 2028. This latest update means that the department has to stick with that timeline, and it cannot eliminate the plan before 2028 without court approval or a lengthy negotiated rulemaking process."
"The SAVE plan was created by former President Joe Biden in 2023, and it intended to give borrowers cheaper monthly payments with a shorter timeline to loan forgiveness. The plan has been halted since 2024 due to lawsuits seeking to block it."
A federal court dismissed a proposed settlement between the Department of Education and Missouri that would have prematurely eliminated the SAVE income-driven repayment plan. Judge John Ross ruled the settlement fell outside the court's jurisdiction because no genuine legal dispute existed between the parties, who had already agreed on the outcome. The SAVE plan, created by President Biden in 2023 to provide borrowers with lower monthly payments and faster loan forgiveness, must now remain available until 2028 per Trump's spending legislation. The plan has faced legal challenges since 2024, but this ruling prevents its early termination without court approval or formal rulemaking procedures.
Read at Business Insider
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