Overview
- U.S. District Judge John Ross dismissed the main lawsuit targeting the SAVE repayment plan, dissolving prior injunctions that had blocked implementation.
- Missouri and other Republican-led states moved to stay the dismissal and asked the court to reinstate the injunction while they appeal, seeking a ruling by 5 p.m. Wednesday, March 4.
- The Education Department has not said whether it will reopen SAVE benefits and told the court it takes no position on the states’ motion.
- Roughly 7.4 million borrowers enrolled in SAVE remain in administrative forbearance, have been charged interest since August, and have not been earning credit toward time-based forgiveness.
- Even if the dismissal stands, Congress has scheduled SAVE to phase out by July 1, 2028, and experts advise considering alternatives such as IBR now or RAP when it launches on July 1, 2026, noting possible processing backlogs.