Higher Ed Policy Roundup: Vol. 8 - Issue 25

On Wednesday, the Education Department (ED) announced that it would be delaying the release of the 2025-2026 Free Application for Federal Student Aid (FAFSA) once again. Recall that the FAFSA has been plagued with issues stemming from delays due to the implementation of the FAFSA Simplification Act. The form is now expected to be available on or before December 1, 2024, with a test form available to a limited number of students and schools on October 1, 2024. According to ED, the form will be released in phases to allow for testing and issue resolution before making it available to all students.

The Biden-Harris Administration sent emails to federal student loan borrowers alerting them about potential upcoming student loan forgiveness and options for opting out. The student loan forgiveness stems from not-yet finalized regulations released in April that would permit debt forgiveness waivers for borrowers who:

• Owe more than they did when their loans first entered repayment;
• First entered repayment either 20 or 25 years ago;
• Are eligible for loan forgiveness but have not yet applied; and
• Are enrolled in low-financial-value programs.

The waiver program is expected to begin this fall, and borrowers will have until August 30, 2024 to permanently opt out.

New America released its eighth annual report exploring Americans’ perspectives on postsecondary education issues such as value, affordability, funding, and accountability, revealing that confidence in the value of higher education continues to decline.

In a joint report, the American Enterprise Institute, Education Counsel, and The Century Foundation outlined next steps for federal policy to address issues within federal graduate and professional education financing.

The following bill(s) have been recently introduced for consideration by the 118th Congress (2023-2024):

H.R. 9185 – Helping Student Parents Succeed Act [Rep. Colin Allred (D-TX-32)] would require higher education institutions to post on their website their policies regarding leaves of absence related to pregnancy or adoption of a child, making up missed work, lactation accommodations, the availability of child care, and housing for students with dependents.

H.R. 9192 – Streamlining Income-driven, Manageable Payment on Loans for Education (SIMPLE) Act [Rep. Suzanne Bonamici (D-OR-1)] would require the automatic enrollment of struggling borrowers in income-driven repayment plans.

S. 4815 – Student Loan Accountability Act [Sen. Mitt Romney (R-UT)] would prohibit the mass cancellation of student loans.

S. 4926 – Affordable Future Loan Program Act [Sen. Mike Rounds (R-SD)] would establish a new student loan repayment option allowing students to use private financial institutions to take out federal loans that would accrue no interest while in school.