Higher Ed Policy Roundup: Vol. 8 - Issue 24

After the Eighth Circuit Court of Appeals blocked implementation of the Saving on a Valuable Education (SAVE) repayment plan last week, the Education Department (ED) placed all SAVE borrowers in an interest-free forbearance. ED updated its website over the weekend to alert borrowers that months spent in this forbearance will not count toward Public Service Loan Forgiveness or income-driven repayment forgiveness.

On Wednesday, Republican House leadership canceled votes scheduled for next week after being unable to pass all 12 federal spending bills. House members are not scheduled to return to Washington until September 9, giving Congress a few short weeks to pass spending bills before the September 30 deadline or risk a government shutdown.

More student loan borrowers are successfully receiving debt relief through the Biden-Harris Administration’s bankruptcy policy implemented two years ago, as 98% of court cases have resulted in at least a partial student loan discharge.

Experts predict another setback regarding the Free Application for Federal Student Aid (FAFSA) as administrators must now wait until August to submit corrections, ultimately affecting how much money colleges can offer students whose circumstances changed since they first applied.

On Monday, the American Federation of Teachers filed a lawsuit against the Missouri Higher Education Loan Authority (MOHELA), claiming that the student loan servicer is blocking borrowers from accessing reliable information about their repayments plans.

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