Higher Ed Policy Roundup: Vol. 9 - Issue 24

This Week In Washington

On Wednesday, the Education Department (ED) announced that it would restart the accrual of interest for borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan to comply with a federal injunction. Recall that the SAVE Plan, a Biden-era income-driven repayment plan (IDR), has been wrapped up in litigation resulting in SAVE Plan borrower’s loans being placed in forbearance with a pause on the accrual of interest. The injunction directed ED to stop implementation of the entire SAVE Plan, but according to POLITICO, “it is not immediately clear which part of the injunction requires the department to resume accruing interest.” SAVE Plan participants can expect their interest to begin accruing on August 1, 2025.

News You Can Use

Learn how the Republican-led reconciliation bill will impact students, families, and borrowers.

Read a Brookings report discussing the potential benefits and costs of requiring a minimum payment in IDR plans.

Recent Legislation

There were no relevant student-aid related bills recently introduced for consideration by the 119th Congress (2025-26).