WASHINGTON—The Trump Administration is asking a federal judge in Washington, D.C., to dismiss a lawsuit brought by student loan borrowers seeking to revive the Biden administration’s Saving on a Valuable Education (SAVE) repayment plan, arguing the case is now moot because the program no longer exists, Law360 reported.
In a filing Wednesday, the U.S. Department of Justice said there is no relief for the court to grant after the U.S. Court of Appeals for the Eighth Circuit ordered the SAVE rule vacated in March. According to the Administration, the borrowers’ challenge sought implementation of a regulation that has already been formally set aside by the courts, leaving “no rule left to enforce,” Law360 said.
The lawsuit was filed by four borrowers after the Eighth Circuit directed a Missouri federal court to enter a judgment vacating SAVE, the income-driven repayment program created during the Biden Administration that lowered monthly payments and expanded forgiveness opportunities for millions of borrowers. Consumer advocates have argued the appeals court improperly eliminated the rule without addressing its legality on the merits and have sought to restore the program through separate litigation, Protect Borrowers reported.
The dispute is the latest chapter in the long-running battle over SAVE, which has affected roughly seven million to eight million borrowers. The Eighth Circuit’s March order effectively ended the program, although advocacy groups and borrower representatives continue to challenge the ruling and argue Congress’ subsequent actions and administrative law principles support preserving portions of the repayment plan.