On March 9, the U.S. Court of Appeals for the 8th Circuit reversed the U.S. District Court for the Eastern District of Missouri’s dismissal of a lawsuit brought by several states challenging the Department of Education’s Saving on a Valuable Education (SAVE) final rule. The 8th Circuit also directed the lower court to enter final judgment on a proposed settlement between the parties. The settlement would, among other things, vacate the final rule. As previously covered by InfoBytes, the district court had dismissed the case on February 27 after finding it moot, as both sides sought the same outcome and given Congress had enacted the One Big Beautiful Bill Act, which phases out the SAVE plan by July 1, 2028.

Separately, on the same day, four borrowers filed a complaint in the U.S. District Court for the District of Columbia, alleging that, despite the absence of any court order barring relief in light of the district court’s February 27 dismissal, the Education department was unlawfully withholding benefits mandated under the SAVE final rule. The plaintiffs, each claiming eligibility for immediate loan discharge or reduced monthly payments, asserted that the department’s statements and website notices inaccurately described the plan as enjoined, and that such refusals could force borrowers into years of additional payments on debts that should be cancelled.