Student Loans After SAVE: From the Court Block to the Repayment Assistance Plan

Paper IDR application with RAP enrollment option becomes available

A revised paper income-driven repayment application with an option to enroll in the Repayment Assistance Plan became available. The Student Loan Borrower Assistance Project reported that the form was released on October 1, 2026.

• Student Loan Borrower Assistance Project, National Consumer Law Center · Oct 1, 2026 · “Note: The new IDR paper application that allows you to enroll in the RAP plan was just released today, October 1, 2026.”

Editor's note: The page states that the new IDR paper application allowing enrollment in RAP “was just released today, October 1, 2026.” This supports both the availability claim and the stated event date.

Former SAVE borrowers receive final 30-day plan-selection notices

Some former SAVE borrowers received notices directing them to select a repayment plan within 30 days. The notices were sent after initial SAVE-transition windows for borrowers initially notified around July 1 had expired.

• Business Insider · Oct 1, 2026 · “If you do not take immediate action to select a repayment plan, we will place you into a repayment plan in 30 days.”
• Federal Student Aid · Oct 2026 · If you don’t act within that 90-day period, your servicer will send you a final 30-day notice.
• Business Insider · Oct 13, 2026 · Now, borrowers have told Business Insider that as their deadline approached at the end of September, they received a 30-day "final notice" to select a new plan, which extended their deadline by one month.

Editor's note: The article, published October 1, 2026, reports that some borrowers initially notified on or around July 1 received a final 30-day notice after the first wave's September 29 deadline. It includes the quoted language directing borrowers to choose a plan or be placed into one in 30 days.

Federal Student Aid says SAVE forbearance does not count toward PSLF

Federal Student Aid told borrowers that time spent in the SAVE forbearance does not earn credit toward Public Service Loan Forgiveness, and that months already credited before entering it are not removed. Borrowers who reach 120 months of qualifying employment can buy back certain ineligible months, the SAVE forbearance among them.

• Federal Student Aid · Oct 2026 · However, you may buy back certain months you spent in an ineligible deferment or forbearance, including the SAVE forbearance, when you already have 120 months of qualifying employment.

Editor's note: Quote re-spanned in review. The sentence stating the ineligibility outright carries markdown bold inside it in the fetched text, which would print as asterisks on the page; the buy-back sentence states the same ineligibility cleanly and adds the remedy.

Federal Student Aid says pending SAVE applications will be denied

Federal Student Aid said loan servicers will deny pending SAVE Plan applications. Borrowers who do not choose another plan after the denial and final notice process will be returned to the repayment plan they held before applying for SAVE.

• Federal Student Aid · Oct 2026 · Your loan servicer will deny your SAVE Plan application.

Editor's note: Federal Student Aid states that servicers will deny pending SAVE Plan applications. It also says borrowers who do not choose a different plan after the 90-day and final 30-day notice process will be enrolled in the plan they had before applying for SAVE.

Federal Student Aid releases FY 2023 cohort-default-rate results

Federal Student Aid published its official national cohort default rate briefing for fiscal 2023, with the rates attached to the announcement.

• Federal Student Aid · Sep 30, 2026 · “The Official National Student Loan Cohort Default Rate Briefing for FY 2023 official cohort default rates (CDRs) is attached.”
• NASFAA · Oct 1, 2026 · “The FY 2023 national rate is 0.4%, up from 0% for FY 2022, as was expected as pandemic-era borrower protections ended during the cohort’s default measurement window.”

Editor's note: Editor: dropped a NASFAA-sourced 0.4 percent national rate and a comparison with zero for fiscal 2022; the announcement itself states neither, it attaches the briefing.

Education Department extends auto-pay discount enrollment deadline

The U.S. Department of Education extended the deadline to enroll in auto pay for the temporary 1-percentage-point interest-rate reduction to December 31, 2026. Borrowers enrolled by that date, or already enrolled, will receive the reduction through June 30, 2028.

• U.S. Department of Education · Sep 29, 2026 · “Borrowers who enroll in auto pay by December 31, 2026, or those who are already enrolled, will benefit from the interest rate reduction through June 30, 2028.”
• NASFAA · Sep 30, 2026 · “On Tuesday, ED announced that interested borrowers now have until December 31, 2026, to enroll in auto pay and receive this benefit.”

Editor's note: The page is dated September 29, 2026 and states that the Department extended enrollment for the 1 percent interest-rate reduction. It says borrowers enrolled by December 31, 2026, or already enrolled, will receive the reduction through June 30, 2028.

Federal Student Aid distributes FY 2023 cohort-default-rate notices

Federal Student Aid distributed FY 2023 official cohort default rate notification packages to eligible domestic and foreign schools. Federal Student Aid said the school-specific packages were scheduled for public release on September 30, 2026, with appeals beginning October 6.

• Federal Student Aid · Sep 29, 2026 · “On Monday, Sept. 28, 2026, Federal Student Aid (FSA) distributed the Fiscal Year 2023 (FY 2023) official cohort default rate (CDR) notification packages to all eligible domestic and foreign schools.”

Editor's note: The page states that FSA distributed FY 2023 official CDR notification packages to all eligible domestic and foreign schools on Monday, September 28, 2026. It also says rates would be publicly released September 30, 2026, and that the appeal period begins October 6, 2026.

State ombudspersons urge delay of mandatory repayment-plan transitions

State student-loan ombudspersons urged the U.S. Department of Education to delay mandatory repayment-plan transitions. They said the delay should continue until operational failures were resolved.

• Forbes · Sep 24, 2026 · To address these issues, we urge the Department to take immediate corrective action, including delaying mandatory repayment plan transitions until these operational failures are fully resolved.

Editor's note: The page states that more than a dozen state student-loan ombudspersons called on Secretary McMahon to pause forced transitions out of the SAVE plan and includes the quoted language. It says their letter was sent on Tuesday, which was 2026-09-22.

Education Department requests emergency processing for revised PSLF form

The U.S. Department of Education requested emergency processing for a revision to an existing information collection. The request concerned the PSLF and TEPSLF Certification and Application.

• U.S. Department of Education · Sep 22, 2026 · The Department of Education (Department) is requesting emergency processing for a revision to an existing information collection.

Editor's note: The page states that the Department requested emergency processing for a revision to an existing information collection concerning the PSLF and TEPSLF Certification & Application. It lists both the publication and posted date as September 22, 2026.

Federal Student Aid announces Perkins servicing transfer to GCR

Federal Student Aid announced that servicing of federally held Perkins Loans would transition from ECSI Federal Perkins Loan Servicer to GCR Servicing. The agency said the transition would occur over the following months.

• Federal Student Aid · Sep 22, 2026 · We will transition the servicing of federally held Federal Perkins Loan Program loans (Perkins Loans) over the next few months from the current servicer, ECSI Federal Perkins Loan Servicer (ECSI), to GCR Servicing (GCR).

Editor's note: The page is readable and states that Federal Student Aid will transition servicing of federally held Perkins Loans from ECSI to GCR over the next few months. It is posted September 22, 2026.

Federal Student Aid defers RAP enrollment reporting to next quarter

Federal Student Aid said enrollment reporting for the Repayment Assistance Plan would be available in the next quarterly report. The agency said RAP was introduced in July 2026, after the quarter covered by the data cycle ended.

• Federal Student Aid · Sep 22, 2026 · Enrollment reporting in the new IDR plan—the Repayment Assistance Plan (RAP), which was introduced in July 2026—will be available next quarter.
• NASFAA · Sep 25, 2026 · FSA noted that data on enrollment in the Repayment Assistance Plan (RAP) will be available in the next quarterly report, since the RAP was not available to borrowers until July 1, 2026, after the quarter for this data cycle ended.

Editor's note: The page states that RAP enrollment reporting "will be available next quarter" and identifies RAP as having been introduced in July 2026. The announcement is posted September 22, 2026.

Federal Student Aid reports more than 9.3 million default recipients

Federal Student Aid reported that the cumulative number of recipients in default increased by about 400,000 to more than 9.3 million. NASFAA separately reported the same increase from the updated Federal Student Aid data.

• Federal Student Aid · Sep 22, 2026 · This quarter, the cumulative number of recipients in default increased by approximately 400,000 to more than 9.3 million.
• NASFAA · Sep 25, 2026 · The updated data also show an increase in borrowers in default, with the cumulative number rising by roughly 400,000 to more than 9.3 million.

Editor's note: The page, posted September 22, 2026, states that the cumulative number of recipients in default increased by approximately 400,000 to more than 9.3 million. The page does not mention NASFAA, but it fully supports the Federal Student Aid reporting claim and quoted text.

Colleges apply different interpretations of PLUS grandfathering

Inside Higher Ed reported that colleges used different interpretations of the expected-time-to-credential exception for continuing students. Texas Christian University used completed credit hours in one Parent PLUS determination, while Loyola Marymount University said it would use years enrolled pending written Federal Student Aid guidance.

• Inside Higher Ed · Sep 21, 2026 · But not all colleges see the department’s clarification, delivered via a webinar, as binding.

Editor's note: The article states that TCU used completed credit hours to determine Parent PLUS legacy eligibility, while Loyola Marymount said it would use years enrolled pending formal written Federal Student Aid guidance. It is dated September 21, 2026, and the quoted sentence appears on the page.

NASFAA advises legal review of expected-time-to-credential guidance

NASFAA advised financial-aid administrators to seek legal counsel over uncertainty in Education Department guidance on the expected-time-to-credential exception. NASFAA said the August 12 webinar used completed credit hours after earlier written guidance directed schools to use time enrolled, while the Department said its clarification was not a policy change.

• National Association of Student Financial Aid Administrators · Sep 17, 2026 · In this uncertain environment, NASFAA advises that financial aid administrators consult with legal counsel to assess risk and determine the best course of action.
• Inside Higher Ed · Sep 21, 2026 · ED has said the clarification didn’t represent a change in policy.

responded to Federal Student Aid uses credit hours for Grad PLUS grandfathering.

Editor's note: The page states that NASFAA advised financial-aid administrators to consult legal counsel amid uncertainty over expected-time-to-credential guidance. It says ED's August 12, 2026 webinar used credits completed after earlier guidance used time enrolled, and it describes the Department as not acknowledging a change in calculation method; the page was published September 17, 2026.

Education Department appeals the PSLF vacatur to the First Circuit

The department notified the court on August 27 that it would appeal Judge Myong J. Joun's June 30 decision, which granted summary judgment to the plaintiffs and vacated the PSLF employer-eligibility rule, to the U.S. Court of Appeals for the First Circuit. The vacatur stays in effect while the appeal is pending, so the 'substantial illegal purpose' employer test is not being applied.

• NASFAA · Aug 28, 2026 · “The vacatur remains in effect while the appeal is pending.”

responded to Judge Joun vacates the PSLF 'substantial illegal purpose' rule hours before it takes effect.

Editor's note: Hand-checked against the NASFAA report; the court is identified via Judge Joun.

Education Department files Havens dismissal reply

The U.S. Department of Education and Linda McMahon filed a reply supporting their motion to dismiss the Havens case on August 17, 2026. The reply addressed opposition to their July 14 dismissal motion.

• U.S. District Court for the District of Columbia docket · August 17, 2026 Filing 32 REPLY to opposition to motion re #24 Motion to Dismiss,,, Motion to Dismiss/Lack of Jurisdiction,, filed by LINDA MCMAHON, US DEPARTMENT OF EDUCATION.
• The College Investor · Aug 2026 · The U.S. Department of Education filed its reply brief in support of its motion to dismiss in Havens v. U.S. Department of Education on August 17, 2026.

Editor's note: The docket lists Filing 32 on August 17, 2026 as a reply to opposition to Filing 24, the defendants' motion to dismiss/lack-of-jurisdiction motion. The quoted docket entry appears on the page, with only whitespace/punctuation differences.

Education Department corrects Havens supplemental filing

The Education Department filed a notice correcting the supplemental memorandum it had submitted in the Havens case, attaching a corrected brief, a redline and a corrected declaration.

• CourtListener (Havens v. US Department of Education, D.D.C. 1:26-cv-00816) · Aug 17, 2026 · Aug 17, 2026 NOTICE of Correction by LINDA MCMAHON, US DEPARTMENT OF EDUCATION re 27 Supplemental Memorandum,

Editor's note: Re-sourced in review. The research cited a Justia docket page and a trade report, neither of which served the text to a fetcher; the docket entry is readable on CourtListener and is quoted from there. The claim that the Department blamed its own National Student Loan Data System was dropped, because the docket does not carry it and the report that did could not be opened.

Federal Student Aid uses credit hours for Grad PLUS grandfathering

Federal Student Aid instructed schools to calculate continuing borrowers’ expected time to credential using completed credit hours rather than time enrolled. The calculation determines how long grandfathered borrowers may retain access to Grad PLUS after new borrowing closed on July 1, 2026.

• The College Investor · Sep 20, 2026 · ED now counts credit hours, not time, for Grad PLUS uncapped grandfathering.
• Johns Hopkins University Student Enrollment and Account Management · Sep 3, 2026 · Based on current guidance (August 12, 2026) from the U.S. Department of Education (ED), we calculate expected time to credential (ETTC) based upon the number of credits required to complete your current program of study, the number of credits you completed for your program as of June 30, 2026, and the University’s definition of full-time enrollment for an academic year.
• Federal Student Aid · May 20, 2026 · To calculate a student’s expected time to credential, determine the difference between the program length in weeks, months, or years (as defined by the institution) and the period of such program of study that such individual has completed prior to July 1, 2026.

was answered by NASFAA advises legal review of expected-time-to-credential guidance.

Editor's note: The page states that during an August 12, 2026 Federal Student Aid webinar, staff instructed schools to calculate expected time to credential using completed credit hours rather than time enrolled. It says this calculation governs continuing borrowers’ grandfathered Grad PLUS access after the program ended on July 1, 2026.

Labor unions file RISE professional-degree lawsuit

AFL-CIO, AFSCME, American Federation of Teachers, and National Nurses United filed a lawsuit challenging the RISE professional-degree definition. The complaint also challenged RISE restrictions on transition protection for some already-enrolled borrowers.

• U.S. District Court for the District of Columbia · Aug 11, 2026 · “This lawsuit thus pursues objectives germane to the AFL-CIO’s purposes.”

Editor's note: The complaint identifies AFL-CIO, AFSCME, AFT, and NNU as plaintiffs and challenges both the RISE Rule’s professional-student definition and restrictions on its interim exception for certain already-enrolled borrowers. It is stamped as filed on 08/11/26, and the quoted sentence appears in the AFL-CIO standing allegations.

Massachusetts judge denies nursing groups' RISE injunction request

A Massachusetts federal judge denied without prejudice nursing associations' request for preliminary relief from the RISE professional-degree definition. The court found the plaintiffs likely to succeed on their contrary-to-law argument but found no present irreparable harm requiring an injunction.

• U.S. District Court for the District of Massachusetts, via Justia docket filing · Aug 10, 2026 · “Plaintiffs’ motion for preliminary injunction and a stay (Dkt. 14) is DENIED without prejudice to supplementation or renewal consistent with this opinion.”

Editor's note: The memorandum and order is dated 2026-08-10 and denies the plaintiffs' preliminary-injunction and stay motion without prejudice. It finds plaintiffs likely to succeed on their contrary-to-law claim but concludes they have not shown likely irreparable harm warranting preliminary relief at that time.

Education Department seeks dismissal of Havens challenge

The U.S. Department of Education and Linda McMahon moved to dismiss the Havens case, including for lack of jurisdiction, on July 14, 2026. The Justice Department also told the court that the lawsuit seeking to stop the SAVE shutdown should be dismissed.

• U.S. District Court for the District of Columbia docket · July 14, 2026 Filing 24 MOTION to Dismiss , MOTION to Dismiss for Lack of Jurisdiction by LINDA MCMAHON, US DEPARTMENT OF EDUCATION.
• The College Investor · Jul 2026 · The Justice Department told a federal judge on July 14 that the last active lawsuit trying to stop the SAVE plan shutdown should be dismissed.

responded to Havens plaintiffs file preliminary-injunction motion.

Editor's note: Hand-checked: the July 14, 2026 docket entry appears on the Justia docket and The College Investor carries the same filing.

GAO finds gaps in Education's servicer-change instructions

The U.S. Government Accountability Office reported that servicers faced implementation challenges because Education did not consistently provide clear advance instructions for program changes. GAO recommended criteria for early coordination with servicers, and the U.S. Department of Education disagreed with that recommendation.

• U.S. Government Accountability Office · Jul 13, 2026 · “We found servicers faced challenges implementing program changes due to a lack of clear upfront instruction from Education.”

Editor's note: The page states that servicers faced challenges due to a lack of clear upfront instruction from Education, recommends formal criteria for early coordination, and says Education disagreed. It lists the report as published on 2026-07-13.

Education Department begins sending SAVE transition notices

The U.S. Department of Education began sending 90-day notices to SAVE borrowers on July 1, 2026. The notices were sent in waves, and the earliest required move to a new plan was September 29, 2026.

• The College Investor · Jul 2026 · The Department of Education began sending 90-day notices on July 1, 2026, and the earliest a borrower can be required to move to a new plan is September 29, 2026.
• Student Loan Borrower Assistance / National Consumer Law Center · Sep 2, 2026 · These notices are being sent in waves.

Editor's note: The page states that the Department of Education began sending 90-day notices on July 1, 2026, in batches, and that the earliest required move to a new plan is September 29, 2026. The quoted sentence appears verbatim aside from its placement in the article.

Judge Joun vacates the PSLF 'substantial illegal purpose' rule hours before it takes effect

Judge Myong J. Joun of the U.S. District Court for the District of Massachusetts granted summary judgment to the plaintiffs and vacated the Public Service Loan Forgiveness employer-eligibility rule on June 30, the day before its July 1 effective date. On July 13 Federal Student Aid said it was removing the employer attestation it had just added to the PSLF form to comply with the order.

• U.S. District Court for the District of Massachusetts · Jun 30, 2026 · “The Final Rule is VACATED.”
• Federal Student Aid · Jul 13, 2026 · “The Department is now removing the attestation from the PSLF form in order to comply with the court order.”
• U.S. District Court for the District of Columbia, via Justia docket filing · Jun 30, 2026 · “The court agrees and vacates the rule.”

was answered by Education Department appeals the PSLF vacatur to the First Circuit.

Editor's note: Hand-checked: Justia docket order and the FSA July 13 notice both quoted.

One-point interest rate cut for borrowers on auto pay, if they enroll by September 30

To push borrowers into the new plans and back onto automatic payments, the department offered a 1 percentage point interest reduction from July 1, 2026 through June 30, 2028 for anyone enrolled in auto pay by September 30, 2026, up from the usual 0.25 point discount. It said auto-pay enrollment had fallen from more than 80 percent of borrowers in active repayment before the pandemic to 40 percent.

• U.S. Department of Education · Jun 18, 2026 · Today, the U.S. Department of Education (the Department) announced that federal student loan borrowers enrolled in auto pay will be eligible for a 1 percent interest rate reduction beginning July 1. Borrowers who enroll in auto pay by September 30, 2026, or who are already enrolled, will benefit from the interest rate reduction through June 30, 2028.

Glitches and bad payment estimates hit borrowers two weeks before the July 1 switch

Borrower-assistance groups told CNBC that the department's online income-driven repayment application was showing wrong plan eligibility and monthly payment estimates, servicers were sending erroneous delinquency notices to borrowers still in forbearance, and some borrowers were being told to consolidate unnecessarily, as nearly seven million SAVE enrollees prepared to change plans with an agency that had lost close to half its staff.

• CNBC · Jun 16, 2026 · But student loan borrowers are encountering technical issues and misinformation in the weeks leading up to the massive changes, advocates say.

Multistate coalition challenges RISE professional-degree definition

A multistate coalition sued the U.S. Department of Education over the RISE rule's professional-degree definition. North Carolina Attorney General Jeff Jackson said the definition affected nursing, physician-assistant, therapy, occupational-therapy, and audiology programs.

• North Carolina Department of Justice · May 19, 2026 · “What Congress didn’t do was change the pre-existing definition of professional degrees.”

Editor's note: The page says Attorney General Jeff Jackson sued the U.S. Department of Education over a rule narrowing the definition of a professional degree and identifies nurses, physician assistants, physical therapists, occupational therapists, and audiologists as affected. It is dated Tuesday, May 19, 2026, and includes the quoted sentence.

Federal Student Aid updates portfolio reports through December 2025

Federal Student Aid released updated portfolio reports containing data through December 31, 2025. The reports showed 7.7 million federally held loan recipients in default, more than 6.5 million borrowers in SAVE forbearance, and nearly 12.9 million borrowers enrolled in IDR plans.

• Federal Student Aid · Mar 13, 2026 · “This update refreshes more than 70 quarterly application, disbursement, and loan portfolio reports to include data through Dec. 31, 2025.”

Editor's note: The page is readable and was posted March 13, 2026. It states that more than 70 quarterly reports were refreshed through Dec. 31, 2025, and supports the cited default, SAVE forbearance, and IDR enrollment figures.

Judge Ross throws out the SAVE case rather than bless the settlement

Judge John Ross of the Eastern District of Missouri dismissed the lawsuit and the proposed settlement, finding no live controversy because both sides now wanted SAVE gone and Congress had already scheduled its end for July 1, 2028. The order neither revived nor struck down SAVE, leaving seven million enrollees in limbo and prompting a separate borrower suit demanding the plan be implemented.

• NASFAA · Mar 2, 2026 · On Friday, in a court order, Judge John Ross of the U.S. District Court for the Eastern District of Missouri dismissed this settlement, arguing that there is “no longer a live case or controversy sufficient,” therefore, the court doesn’t have authority to enter a judgment.

Nonpayment data: more than 1,800 colleges have a quarter or more of borrowers not paying

Alongside new default-management guidance, the department published updated institution-level nonpayment rates as an early warning for cohort default rates, which can cost a school its access to federal aid at 30 percent for three years or 40 percent in one. Under Secretary Nicholas Kent said institutions 'cannot benefit from taxpayer dollars while ignoring' the numbers.

• U.S. Department of Education · Feb 18, 2026 · The Department also released updated nonpayment rates by institution, which may serve as an early indicator of whether a college or university may be at risk of failing the CDR measure. The new data show that over 1,800 institutions have nonpayment rates at or exceeding 25 percent.

Proposed rule published: loan caps, program-level limits and the two new repayment plans

The department issued its notice of proposed rulemaking to implement the law, with a 30-day comment window. Beyond the statutory caps it proposed letting colleges set program-level loan limits below the statutory maximums, and it carried the RISE committee's narrow professional-degree definition. The department later said it received 80,793 comments.

• U.S. Department of Education · Jan 29, 2026 · The U.S. Department of Education (the Department) today issued a Notice of Proposed Rulemaking (NPRM) aimed at reducing the cost of higher education and simplifying federal student loan repayment, as outlined in President Trump’s historic Working Families Tax Cuts Act (the Act).

Wage garnishment and Treasury offsets delayed weeks after the first notices were due

Having told defaulted borrowers in December that garnishment notices would start the week of January 7, the department reversed course and delayed all involuntary collection, both Administrative Wage Garnishment and the Treasury Offset Program, saying the new law's repayment plan and second-chance rehabilitation should be in place first. The delay ran into tax-refund season and was not given an end date.

• U.S. Department of Education · Jan 16, 2026 · The U.S. Department of Education (the Department) today announced that it will delay the implementation of involuntary collections on federal student loans, including Administrative Wage Garnishment (AWG) and the Treasury Offset Program (TOP). The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act (the Act) to give borrowers more options to repay their loans.

Wage garnishment to begin the week of January 7 for the first time since 2020

The department told reporters it would start administrative wage garnishment on defaulted borrowers in early January 2026, with notices to a first group of about 1,000 borrowers and more each month, allowing up to 15 percent of disposable pay to be withheld after a 30-day notice. Borrower advocates called the decision cruel while nearly a million income-driven repayment applications sat unprocessed.

• Protect Borrowers · Dec 23, 2025 · Beginning the week of January 7, 2026, the U.S. Department of Education (ED) plans to start garnishing wages from student loan borrowers in default. This will be the first time that borrowers in default are subject to losing their pay over student loans since the COVID-19 pandemic—approximately five years.

Department and Missouri agree to end SAVE outright

Rather than litigate to judgment, the department and Missouri Attorney General Catherine Hanaway proposed a joint settlement under which the department would enroll no new borrowers in SAVE, deny pending applications and move all enrollees into other plans. The department put SAVE's ten-year cost at more than $342 billion and said more than seven million borrowers were still in the forbearance.

• U.S. Department of Education · Dec 9, 2025 · As part of the proposed joint settlement agreement, the Department will not enroll any new borrowers in the illegal SAVE Plan, deny any pending applications, and move all SAVE borrowers into legal repayment plans.

RISE negotiators reach consensus on the whole loan package, including who counts as a 'professional' student

The RISE committee agreed on all 17 regulatory provisions implementing the law's loan changes: eliminating Grad PLUS, capping Parent PLUS, sunsetting the older repayment plans and creating the Repayment Assistance Plan. It also adopted a definition of professional degree drawn from existing regulatory text, the provision that would later be challenged in court.

• U.S. Department of Education · Nov 6, 2025 · Today, the U.S. Department of Education (the Department) concluded its negotiated rulemaking session, where the Reimagining and Improving Student Education (RISE) Committee reached consensus on the entire package of federal student loan-related changes advanced by the One Big Beautiful Bill Act (OBBBA).

PSLF final rule lets the Secretary disqualify employers with a 'substantial illegal purpose'

The department finalized a rule, effective July 1, 2026, amending the definition of a qualifying Public Service Loan Forgiveness employer to exclude organizations it finds engage in illegal activity such as supporting terrorism, aiding illegal immigration or providing gender-transition care to minors. It followed Executive Order 14235 of March 7, 2025, a July negotiated rulemaking and nearly 14,000 public comments.

• U.S. Department of Education · Oct 30, 2025 · The final rule amends the definition of “qualifying employer” to exclude organizations that engage in unlawful activities such that they have a substantial illegal purpose, including supporting terrorism and aiding and abetting illegal immigration.

IBR loan forgiveness resumes after a summer pause

Servicers and borrower advocates confirmed to CNBC that discharges under Income-Based Repayment, which the department had paused in July while it 'responded to court orders', had restarted for borrowers who reached 20 or 25 years of payments. IBR is the one income-driven plan whose forgiveness is written into statute, which made the pause especially contentious.

• CNBC · Oct 6, 2025 · The Trump administration has resumed forgiving student debt for some borrowers enrolled in a program that's been partially paused since July, a trade group told CNBC.

Department sets up the RISE committee to write the new law's loan rules

The Office of Postsecondary Education announced negotiated rulemaking to implement the law, with a Reimagining and Improving Student Education (RISE) committee to handle loan provisions in five-day sessions in September and November and a separate AHEAD committee for Workforce Pell and accountability. A public hearing was set for August 7.

• U.S. Department of Education · Jul 24, 2025 · The Department will create a Reimagining and Improving Student Education (RISE) Committee to address federal student loan-related changes. The RISE Committee will have five-day sessions in September and November.

Involuntary collections begin: 195,000 Treasury offset notices, garnishment warnings to 5.3 million

On the day collections resumed, Treasury started sending 30-day notices to about 195,000 defaulted borrowers that their federal benefits, including Social Security payments and tax refunds, would be offset, with the first offsets hitting June checks. The department said all 5.3 million defaulted borrowers would be told later in the summer that their wages could be garnished, and sent colleges a Dear Colleague letter warning about cohort default rates.

• U.S. Department of Education · May 5, 2025 · Starting today, approximately 195,000 defaulted student loan borrowers will begin receiving an official 30-day notice from the U.S. Department of Treasury notifying them that their federal benefits will be subjected to the Treasury Offset Program. The first monthly benefit checks subject to offset are those scheduled for early June. Later this summer, all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment.

Collections on defaulted loans to restart May 5 for the first time since March 2020

Secretary Linda McMahon announced that Federal Student Aid would resume collecting on the defaulted portfolio on May 5, 2025, through the Treasury Offset Program and later wage garnishment. The department said 42.7 million borrowers owed more than $1.6 trillion, more than five million were in default, four million more were in late-stage delinquency, and only 38 percent of borrowers were current on their loans.

• U.S. Department of Education · Apr 21, 2025 · The U.S. Department of Education today announced its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5th. The Department has not collected on defaulted loans since March 2020.

Revised IDR application reopens with IBR, PAYE and ICR, but not SAVE

Federal Student Aid put a rewritten income-driven repayment and consolidation application back online about five weeks after taking it down to comply with the Eighth Circuit injunction. Borrowers could again apply for Income-Based Repayment, Pay As You Earn and Income-Contingent Repayment, while SAVE stayed closed and the backlog of pending applications, then near two million, kept growing.

• U.S. Department of Education · Mar 26, 2025 · Today, the U.S. Department of Education’s Office of Federal Student Aid (FSA) reopened the online income-driven repayment (IDR) plan and loan consolidation applications for borrowers. The application was temporarily paused to comply with the 8th Circuit Court of Appeals injunction issued last month, which directed the Department to cease implementation of the Biden Administration’s Saving on a Valuable Education (SAVE) Plan and parts of other IDR plans.

AFT sues the Education Department for taking down the income-driven repayment application

The American Federation of Teachers filed AFT v. U.S. Department of Education in federal court in Washington, arguing that removing the IDR and consolidation forms and telling servicers to stop processing applications unlawfully cut millions of borrowers off from affordable payments and from progress toward Public Service Loan Forgiveness. The case became the vehicle for court-supervised commitments on the application backlog later in the year.

• Protect Borrowers · Mar 19, 2025 · Last night, the 1.8 million-member AFT sued the U.S. Department of Education (ED) for effectively breaking the student loan system, denying borrowers’ access to affordable loan payments and blocking progress towards Public Service Loan Forgiveness (PSLF), in violation of federal law.