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Judge Again Rejects Bid to Keep SAVE Blocked, Leaving Millions in Repayment Limbo

The lifted injunction puts the next step in the Education Department's hands pending a states' appeal.

Overview

  • A federal judge this week denied Missouri-led states' bid to stay his dismissal and to reinstate the injunction that had frozen the SAVE repayment program.
  • The ruling follows last week’s decision to toss the case and decline a proposed settlement that would have terminated SAVE and shifted borrowers to other plans.
  • With the injunction dissolved, the Education Department could resume enrollments, lower payments and process eligible forgiveness, though it has not done so and took no position on the stay request.
  • Missouri and allied states have filed a notice of appeal to the Eighth Circuit seeking to re-block SAVE while the case proceeds.
  • More than 7 million borrowers remain in administrative forbearance as policy paths now include appellate review, potential negotiated rulemaking, and a statutory phase-out of SAVE by July 1, 2028.