August 23, 2024

Higher Ed Policy Roundup: Vol. 8 - Issue 27

Policy and Advocacy


This Week in Washington

Litigation relating to the continued existence of the Saving on Valuable Education (SAVE) plan reached a fever pitch over the last couple of weeks. (Revisit how the cases began, and their status when we last reported). After the Eighth Circuit Court of Appeals issued an unsigned, one-sentence order temporarily blocking implementation of the SAVE plan, three Republican-appointed judges issued a separate signed order blocking the plan and providing greater detail to their reasoning. ED then filed a motion requesting clarification of the court’s order because the order barred ED from providing “any further forgiveness of principal or interest” of loans under income-driven repayment (IDR) plans, which would impact IDR plans other than SAVE. The motion was denied, and ED has taken the position that they are now barred from implementing parts of other IDR plans.

Following that order, ED asked the Tenth Circuit Court of Appeals to strike down the injunction blocking SAVE. Oral arguments took place on Wednesday, and ED will now have to wait for the court to rule on their request. Simultaneously, the Department of Justice filed an emergency appeal with the U.S. Supreme Court asking for the SAVE plan to be reinstated and arguing that the Eighth Circuit’s injunction is overbroad. The Supreme Court has not yet ruled on the motion.

Recent Legislation

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