Major Policy & Program Updates

Update: New changes were announced regarding forgiveness under the SAVE Plan. Read more below.

It's a busy time for student loan borrowers, and there have been many new updates affecting student loans. This article will give brief summaries on the following updates:

• The SAVE Plan - A New Income-Driven Repayment (IDR) Plan 
• Covid-19 Emergency Relief (Payment Pause & 0% Interest)
• Updates to the PSLF Program - May 2024
• One-Time Account Adjustments
• The On-Ramp to Repayment
• One-Time Student Debt Relief 
• Permanent Improvements to Public Service Loan Forgiveness (PSLF)
• Fresh Start Program for Borrowers in Default

The SAVE Plan - A New Income-Driven Repayment Plan (IDR)

The Department of Education released a new Income-Driven Repayment Plan called the SAVE Plan that helps lower monthly payments for borrowers, and covers any unpaid interest. However, recent lawsuits have temporarily put this plan on hold..

Click Here for more details on the SAVE Plan and pending lawsuits.

Covid-19 Emergency Relief (Payment Pause & 0% Interest)

Interest for federal student loans resumed on September 1, 2023, and first payments were due in October 2023. 

Click Here for more details on Covid-19 Emergency Relief!

Updates to the PSLF Program - May 2024

In April, the Department of Education announced they would move the PSLF program from MOHELA to StudentAid.gov. As part of this transition, there will be a temporary pause on the processing of PSLF forms. Please read below for more information.

Click Here for more details on the updates to PSLF.

One-Time Account Adjustments

In 2024, the Department of Education will conduct a One-Time Account Adjustment to give borrowers credit for more past payments, helping them get closer to forgiveness. This adjustment will give borrowers credit or certain forbearance and deferment periods, and let past payments count towards IDR forgiveness. Borrowers without the correct loan types needed to consolidate by April 30, 2024 to be included in the One-Time Account Adjustment.

Click Here for more details on the One-Time Account Adjustment!

The On-Ramp to Repayment

To help with the return to repayment, the Department of Education created a 12 month period where borrowers won't be penalized if they miss a payment. This on-ramp is automatically available to all borrowers from October 1, 2023 to September 30, 2024.

Click Here for more details on the On-Ramp to Repayment.

One-Time Debt Relief Program

In August 2022, President Biden announced a new program designed to provide borrowers with $10,000 in loan cancellation, and an extra $10,000 in cancellation for Pell recipients. On June 30, 2023, the Supreme court issued a decision that blocked implementation of program.

Click Here for more details on the One-Time Debt Relief Program!

Permanent Improvements to Public Service Loan Forgiveness (PSLF)

In July 2023, the Department of Education implemented some permanent changes to the PSLF program. These changes help borrowers get credit for more past payments, and make it easier for borrowers to certify employment for PSLF.

Click Here for more details about Permanent PSLF improvements!

Fresh Start Program for Borrowers in Default

The Department of Education recently created a new program designed to bring borrowers out of default and back into good standing as easily as possible. To participate in this program, borrowers can call their collections agency and opt-in. They'll be brought out of default and back into good standing!

Click Here for more details on the Fresh Start Program for Borrowers in Default.