Higher Ed Policy Roundup: Vol. 9 - Issue 7

On Tuesday, the Eighth Circuit Court of Appeals upheld a previous district court decision blocking the Saving on a Valuable Education (SAVE) Plan from being implemented. Recall that last year the Missouri attorney general filed an emergency motion asking the court to prevent the Education Department (ED) from implementing a provision that would lower the monthly payments for borrowers. Missouri had received a preliminary injunction blocking ED from providing debt cancelation under SAVE, and they argued that the lowered payments, which would qualify some borrowers for $0 monthly payments, was a way to circumvent the injunction by providing borrowers with an alternate route to loan forgiveness. The Eight Circuit Court of Appeals this week also went a step further instructing the district court to expand the injunction on the entire SAVE Plan, not just the forgiveness component. It also instructed the district court to enjoin the Revised Pay As You Earn (REPAYE) Plan, the income-driven repayment (IDR) plan that was replaced by SAVE and resurrected after the injunction.

Late last week, the House Budget Committee advanced its budget resolution which includes instructions for the Education and Workforce Committee to cut $330 billion from programs it oversees. This is the first step in the House advancing their strategy to pass one budget reconciliation bill which has now been backed by President Trump. The Senate, however, continues to move forward with their two-bill strategy and plans to vote on their budget resolution this week. The House plans to work on bringing their budget resolution to the floor for votes when they return from recess next week.

The Congressional Research Service published a report on the history and statutorily established officers, positions, and offices within the U.S. Department of Education, noting the Education Secretary’s reorganization authority under the 1979 Department of Education Organization Act.

In a recent policy brief, the Aspen Economic Strategy Group highlighted recent efforts to enhance transparency in college pricing and the need for continued progress in this area.

There were no relevant student-aid related bills recently introduced for consideration by the 119th Congress (2025-26).