The Biden Administration on August 22, 2023 announced that it has fully launched its updated income-driven repayment application tool on StudentAid.gov, making it possible for student loan borrowers to enroll in the Saving on A Valuable Education (SAVE) plan. This initiative is part of the Administration’s broader efforts to make college more affordable and to support students and borrowers. The Administration already has approved the cancellation of more than $116 billion in student loan debt for 3.4 million borrowers. The new SAVE plan is expected to provide relief of millions of borrowers money on their monthly payments.
Additionally, the U.S. Department of Education is announcing a nationwide outreach campaign called “SAVE on Student Debt” in collaboration with leading grass roots organizations. The aim is to leverage strategic partnerships across public, private, and nonprofit sectors to support borrowers by ensuring they take full advantage of the benefits provided by the SAVE plan in addition to the existing resources and debt forgiveness programs available from the Department.
Under the SAVE plan, a single borrower who makes less than $15 an hour will not have to make any payments. Borrowers earning above that amount would save more than $1,000 a year on their payments compared to other income-driven repayment (IDR) plans. The SAVE plan also ensures that borrowers never see their balance grow due to unpaid interest as long as they keep up with their required payments.
Nominations Solicited For Negotiators To Participate In Public Rulemaking Sessions
The Biden Administration on August 29, 2023 announced the next step in its efforts to open a new pathway to student debt relief by soliciting nominations for negotiators who will participate in public rulemaking negotiation sessions this Fall. The Department of Education seeks nominations from 14 different constituency groups for the Student Loan Relief committee, which will meet for three virtual sessions beginning October 10. Nominations represent the second step in a process known as “negotiated rulemaking,” which is required under the Higher Education Act for any regulations related to the Federal student financial aid programs.
This process started with a public hearing held by the Department last July 18 and a request for public comments, which solicited more than 24,000 responses. Next, negotiators selected by the Department will meet virtually on October 10-11, November 6-7, and December 11-12 to discuss ideas for regulatory reform. The Department is seeking negotiators representing the following categories, each of which will include a primary and alternate representative:
· Four spots for current students and student loan borrowers based upon the level of program attended. The Department is particularly interested in a variety of experiences with student loans and postsecondary education, including attending different types of institutions, receiving a Pell Grant, and borrowing a Parent PLUS loan.
· Four spots for different types of institutions of higher education, including Historically Black Colleges and Universities and minority serving institutions.
· Two spots for State officials and Attorneys General.
· Two spots for civil rights organizations and legal assistance organizations.
· One spot for a U.S. military service member or veteran.
· One spot for a representative from the Federal Family Education Loan program.
The Department will publish proposed rules for the public to comment on in the months following the conclusion of negotiations. Nominations can be sent to negregnominations@ed.gov and must include clear information about nominees. Nominations must be received by September 14, 2023. Additional details on requirements for nominees can be obtained here.