Trump administration takes office, Education Department begins winding down SAVE Plan

President Donald Trump takes office for his second term with Education Secretary Linda McMahon. The Department of Education begins dismantling the Biden administration's SAVE Plan income-driven repayment program. Initial guidance signals the plan will be phased out, with borrowers transitioned to less generous repayment options. The administration signals its intent to halt enrollment in SAVE and develop a replacement program aligned with Republican priorities emphasizing debt reduction over borrower relief. SAVE borrowers in interest-free forbearance receive notification of potential transition to alternative repayment plans.