Higher Ed Policy Roundup: Vol. 8 - Issue 6

On Wednesday, the Education Department (ED) sent emails to 153,000 federal student loan borrowers notifying them that they would be receiving student loan forgiveness. The emails come after the Biden-Harris Administration announced plans to implement a provision of the Saving on a Valuable Education (SAVE) plan, the new income-driven repayment plan created by ED, earlier than expected. Recall that the provision, which was supposed to be implemented in July 2024, forgives the debt of borrowers who borrowed less than $12,000 and who have made payments for 10 years. The measure is expected to provide $1.2 billion in relief to the impacted borrowers.

Experts predict that the continued delays with the Free Application for Federal Student Aid (FAFSA) will result in institutions that enroll large numbers of low-income and Pell-eligible students having to make last-minute adjustments to their fiscal year 2025 budgets. As FAFSA delays continue, some colleges and universities are pushing back the deadline by which students must confirm their plans to attend.

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