Higher Ed Policy Roundup: Vol. 8 - Issue 30

After the Supreme Court declined to reinstate the Saving on a Valuable Education (SAVE) repayment plan, the Eighth Circuit Court of Appeals scheduled oral arguments in the case for October 24. If the Eighth Circuit rules that SAVE was not created legally, the Department of Justice is expected to appeal the case to the Supreme Court for consideration. While all these legal proceedings unfold, borrowers are likely to remain in forbearance until the Supreme Court issues its ruling, which could come as late as June 2025 if the Court is able to hear the case this term.

On Thursday, the Consumer Financial Protection Bureau (CFPB) filed a proposed order against Navient for “its years of failures and lawbreaking.” If entered by the court, the proposed order would ban Navient from servicing Direct Loans and prohibit it from servicing or acquiring loans under the Federal Family Education Loan Program. According to the CFPB’s lawsuit, Navient steered borrowers who may have qualified for income-driven repayment (IDR) plans into forbearance, which resulted in borrowers accruing more interest than they would have in an IDR plan. Under the order, Navient would have to pay a $20 million penalty and provide $100 million in damages to harmed borrowers.

Given the delayed launch of the 2025-26 Free Application for Federal Student Aid (FAFSA), the National College Attainment Network (NCAN) published an article outlining seven key priorities to ensure the upcoming FAFSA cycle is successful.

The NCAN also released a report revealing that the cost of college remains the largest barrier to higher education enrollment and completion.

A new report from the American Bar Association Young Lawyers Division and AccessLex Institute explores young lawyers’ experiences with the COVID-19 student loan repayment pause, their plans in the event of loan forgiveness, their satisfaction with loan servicers, and their mindsets regarding work-life balance.

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