Spectrum News reported on May 11 that the federal Saving on a Valuable Education (SAVE) plan has ended, requiring millions of student loan borrowers to select new repayment plans. The SAVE plan, introduced by the Biden Administration, was designed to lower monthly payments for borrowers. However, a federal appeals court has blocked its implementation.
The end of the SAVE plan is significant because it affects how much many people will pay each month and could influence their financial stability. Borrowers now need to consider other options such as Income-Based Repayment or the newly created Repayment Assistance Plan.
Everett Smith, PhD, associate professor at the University of Cincinnati College of Education, Criminal Justice, Human Services, and Information Technology, said in an interview with Spectrum News: “SAVE really created an opportunity for folks to pay very little. It was much more affordable because it actually calculated what an individual’s income was and what they reasonably could pay.”
Smith advised borrowers to act quickly when notified by loan servicers about their new repayment choices. He warned that ignoring these options could negatively affect credit ratings and make future purchases or rentals more difficult. “Once those service providers send out their information, most of the time they consider their job done,” Smith told Spectrum News. “And you’ll likely have some runway before you start making those payments. So the biggest thing you can do is make sure you take action.”
Jack Miner, vice provost for enrollment management at UC, explained that programs like the Bearcat Affordability Grant were developed to help students achieve greater financial stability as federal policies change. The university announced in January that this grant will provide tuition-free college for Ohio residents from families earning less than $75,000 per year who are Pell eligible starting in fall 2026.
Miner also said these changes may influence borrowing habits and college enrollment trends across the country but noted UC’s efforts to support students through financial awareness programs. “That actually helps you in this case not just think about how you’re borrowing responsibly to pay for college, but it’s also a lesson you’ll carry with you throughout life,” Miner told Spectrum News.
