Higher Ed Policy Roundup: Vol. 10 - Issue 7

This Week In Washington

Last Friday, a federal district court dismissed the lawsuit challenging the legality of the Biden-era Saving on a Valuable Education (SAVE) Plan. The U.S. District Court for the Eastern District of Missouri has rejected the Trump Administration’s proposed settlement. With this, a February 2024 injunction blocking implementation of SAVE is no longer in effect. The One Big Beautiful Bill Act (OBBBA) sunsets the SAVE plan in July 2028. As a result of this ruling, if the administration would like to end the plan sooner, they must do so through rulemaking.

News You Can Use

The Consumer Bankers Association published a white paper examining what steps institutions, state, and federal policymakers need to take to ensure graduate education remains affordable. The report discussed the implications of OBBBA on student lending and provides recommendations on how to improve the market for education funding.

Recent research by Fidelity Investments shows that many borrowers are delaying major life milestones due to student loan debt. Their 2026 State of Student Debt study found that nearly one-third of those currently paying off student loans have delayed purchasing a home due to student debt.

Recent Legislation

The following bill(s) have been recently introduced for consideration by the 119th Congress (2025-26):

H.R. 7810 - Lowering Student Loans Act [Rep. Mike Thompson (D-CA-04)] would amend the Higher Education Act of 1965 to set interest rates for federal student loans made on or after July 1, 2026 at two percent. The bill includes all new Federal Direct Loans, including Stafford, Unsubsidized Stafford, PLUS, and Direct Consolidation Loans.

H.R. 7671 – Student and Young Consumers Empowerment Act [Rep. Suzanne Bonamici (D-OR-1] would reinstate the Consumer Financial Protection Bureau’s Office for Students and Young Consumers. This office would help borrowers seeking to resolve complaints related to private or federal student loans, among other purposes.