August 25, 2023

Higher Ed Policy Roundup: Vol. 7 - Issue 29

Policy and Advocacy

This Week in Washington

The Biden-Harris Administration began promoting its new income-driven repayment plan, Saving on a Valuable Education (SAVE), this week. In a new video, President Joe Biden explains the benefits of the SAVE plan and encourages borrowers to enroll before payments resume in October. The U.S. Department of Education also announced the “SAVE on Student Debt” campaign, a partnership with non-profit organizations to help borrowers enroll in the plan. Some elements of the SAVE plan went into effect on July 30 of this year, such as increasing the share of protected income from 150 percent to 225 percent of the federal poverty level and eliminating unpaid interest each month. The remainder of the changes will become effective July 1, 2024. Check out AccessLex Institute’s summary of the SAVE plan.

News You Can Use

Confusion about repayment resumption for borrowers continues, as some have already experienced inaccurate monthly statements and incomplete debt relief.

Students and higher education professionals are advocating for later state financial aid deadlines since the Free Application for Federal Student Aid (FASFA) will not open until December, much later than in previous years.

A poll from Bankrate revealed that many Americans view student loan debt as a national crisis, with 48 percent of survey respondents with student loan debt considering it as such.

Recent Legislation

There were no relevant student-aid related bills recently introduced for consideration by the 118th Congress (2023-2024).