A federal court blocks ending the SAVE plan before 2028, letting it continue while new Trump-era rules take effect in July 2026.

A federal court has blocked a settlement to end the SAVE student loan repayment plan before 2028, ruling there’s no ongoing legal dispute since both sides agreed without opposition. The decision allows the Biden-era plan to continue operating, preserving lower payments and faster forgiveness for millions. However, uncertainty remains as the broader legal challenge persists. Meanwhile, new repayment rules under Trump’s One Big Beautiful Bill will take effect in July 2026, replacing income-driven plans with two new options, though current borrowers can stay in their existing plans for two years.