- 2025-26 FAFSA ahead of schedule
- Bill Cassidy wins top spot on the HELP Committee
- Department of Education revives ICR plans amid SAVE plan litigation
2025-26 FAFSA ahead of schedule
On Thursday, the Department of Education (ED) announced they are on track to release the 2025-26 Free Application for Federal Student Aid (FASFA) to most students and families ahead of the December 1 release date. The Department is currently undergoing the fourth of four rounds of beta testing. Each beta test has looked at student and contributor experiences filling out and submitting the form, transmission of Institutional Student Information Records (ISIRs) to states and institutions, and student- and institution-initiated corrections. So far, the Department has not identified any “critical bugs” with the online form, despite remaining challenges associated with missing student or contributor signatures. After conducting additional testing as part of Beta 4, the Department will enter an “Expanded Beta 4” testing period, wherein the online form will be available to interested students and families. The FAFSA is expected to exit beta testing and be officially live by December 1.
Sen. Bill Cassidy wins top spot on the HELP Committee
This week, Sen. Bill Cassidy (R-Louisiana) was named the next chair of the Senate Committee on Health, Education, Labor, & Pensions (HELP). Currently serving as ranking member, Cassidy is a longtime fixture on the committee and has championed several of AACC’s top legislative priorities. He is the lead Senate sponsor for the bipartisan College Transparency Act – a bill to reform the federal higher education data infrastructure to reduce burden and improve the quality of information on postsecondary outcomes. He is also a supporter of the bipartisan JOBS Act to expand Pell Grant eligibility to short-term workforce programs. Current chair, Sen. Bernie Sanders (I-VT) is expected to serve as the committee’s ranking member.
Department of Education revives ICR plans amid SAVE plan litigation
On Thursday, the Department of Education (ED) announced that they will publish an interim final rule to revive income-contingent repayment (ICR) plans. The Department had previously sunsetted several income-based repayment plans after creating the extremely borrower-friendly Saving on a Valuable Education (SAVE) plan. By eliminating additional options for income-based repayment, the Biden Administration had hoped to increase enrollment in SAVE, which generally offers lower monthly payments and a faster path to loan forgiveness. More than eight million student borrowers either enrolled or were placed in SAVE.
In August, the U.S. Eighth Circuit Court of Appeals issued a nationwide injunction, arguing that it was likely that the Department of Education had overstepped its executive authority in creating the SAVE plan. While the injunction remains in effect, ED has been unable to provide loan forgiveness under SAVE. Furthermore, while borrowers were able to fill out an application to enroll in SAVE, the Department has been unable to process these applications, leaving millions of existing and new borrowers without an income-based repayment option. The millions of borrowers who had already enrolled in the program have been placed in interest-free forbearance as litigation continues. While these borrowers do not owe payments and are not at risk for default, they are not able to earn credits towards forgiveness under the terms of the repayment plan or Public Service Loan Forgiveness (PSLF).
In 30 days, SAVE plan borrowers, borrowers repaying under a standard plan, and borrowers newly entering repayment will be able to enroll in ICR and PAYE plans.
While community colleges have low rates of student borrowing, the ongoing litigation presents a difficult environment for loan counseling. The American Association of Community Colleges (AACC) will continue to monitor the student loan repayment landscape and its implications for students and institutions.