Shocking update on student loan repayments weeks after Trump announced plans to cancel debt for millions

The Trump administration has provided an update on student loan repayment plans which is set to have a massive impact on those hoping to start college over the next year.

There's no doubt that going to college for further education in the US is extremely expensive, with courses in America ranging from $20,000 to $50,000 annually.

The Biden administration had implemented a plan to forgive student loans for some borrowers and to lower payments for other students - a move that has since been revoked by Donald Trump.

Education Secretary Linda McMahon and her department announced in a press release on Tuesday (December 9) that it had reached an agreement with Missouri that would ditch Joe Biden's 'Saving on a Valuable Education' plan.

Joe Biden implemented the SAVE plan during his time in government (Scott Eisen/Getty Images)

Several states run by the Republican Party previously sued the Department of Education over the SAVE plan, while the program has been suspended since February after Court of Appeals sided with Republicans who challenged Biden's plan.

Under Secretary of Education Nicholas Kent said: "For four years, the Biden Administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing Administration.

"The Trump Administration is righting this wrong and bringing an end to this deceptive scheme. The law is clear: if you take out a loan, you must pay it back. Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies."

The Trump administration has revoked the plans implemented by the Biden administration (Chip Somodevilla/Getty Images)

Under the new proposed plans, no new borrowers would be enrolled into the SAVE scheme, which saw some students have zero monthly payments as a result.

The Hill reports that some seven million federal student loan borrowers are enrolled in the SAVE scheme, while a further 450,000 people have 'expressed interest in enrolling in the plan'.

The settlement agreement discussed by the Trump administration is awaiting court approval.

Those currently on the scene will certainly be left concerned by the news, and further worry will only be added as the press release stated students 'will have a limited time to select a new, legal repayment plan and begin repaying their student loans'.

The news comes just a mere weeks after Trump announced plans to cancel student loan debt for millions - but with a bit of a catch.