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U.S. Capitol Building in the evening.
U.S. Capitol Building in the evening.
Policy and Advocacy Student Loans Financial Aid News Summary
Policy and Advocacy Student Loans Financial Aid News Summary

Higher Ed Policy Roundup: Vol. 9 - Issue 37

This Week In Washington

This week, the Department of Education (ED) announced that it proposed a settlement agreement with a coalition of state Attorneys General (AGs) to end the Saving on a Valuable Education (SAVE) Plan. Courts have blocked implementation of the SAVE Plan after state AGs filed a lawsuit arguing that the Biden Administration did not have legal authority to carry out federal student loan debt forgiveness. If approved by the court, the proposed settlement agreement will permit the ED to:

  • Deny pending SAVE Plan applications
  • Move all SAVE Plan borrowers into “legal repayment plans”

The Office of Federal Student Aid (FSA) will provide support to SAVE Plan borrowers in the coming weeks as they select new repayment plans. ED encouraged borrowers to use FSA’s Loan Simulator tool to select their most optimal repayment plan.

ED’s Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) negotiated rulemaking committee met this week. The AHEAD committee is tasked with developing proposed regulations on higher education provisions included in the One Big Beautiful Bill Act (OBBBA) related to institutional and program accountability, Pell Grants, and other issues. The committee seeks a final consensus vote this week on a Workforce Pell proposal. The committee will convene again January 5-9 to discuss proposed regulation related to program accountability.

News You Can Use

Inside Higher Ed published an analysis of borrowing changes made as part of the One Big Beautiful Bill Act (OBBBA), which discusses that studies show many graduate students will be impacted by these changes and will need to turn to the private market to finance academic pursuits.

A new report from Data for Progress and the Institute for College Access and Success shows that 42% of federal student loan borrowers say that their monthly payments make it more difficult to cover basic needs. The survey also shows that more than a third of borrowers surveyed said it is more challenging to meet healthcare needs because of this education debt.

The National Student Clearinghouse Research Center’s Yearly Progress and Completion report shows that the national six-year degree completion rate has remained steady for the fourth consecutive year.

Recent Legislation

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

H.R. 6502 – College Financial Aid Clarity Act of 2025 [Rep. Lisa McClain (R-MI-9)] would standardize aid notifications to students by requiring the Secretary of Education to develop rules institutions must follow for financial aid offers. The offers must disclose that students do not need to borrow the full amount of loan debt they are eligible for.

H.R. 6498 – Student Financial Clarity Act of 2025 [Rep. Brett Guthrie (R-KY-2)] would amend Title I of the Higher Education Act to codify and expand ED’s College Scorecard to increase transparency in college pricing for consumers. It overhauls net price calculators and establishes a “universal net price calculator” so that individuals can easily compare multiple colleges and even multiple programs between colleges.

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