Education Department Asks Court To Toss Final Lawsuit Blocking SAVE Plan Shutdown

The Justice Department told a federal judge on July 14 that the last active lawsuit trying to stop the SAVE plan shutdown should be dismissed. They argue that the borrowers are suing over a potential tax bomb they ignored by not taking action in 2025, miscalculated payments, forgiveness timelines that wouldn't have made a difference due to the OBBBA, and that the rest of the case amounts to $1,320 the government has already promised to refund if it loses.

The 58-page filing in Havens v. U.S. Department of Education opposes the borrowers' request for a preliminary injunction and asks the court to dismiss the case outright.