The Biden Administration on February 21 announced that it automatically will discharge $1.2 billion in loans for nearly 153,000 borrowers who are eligible for the shortened time to forgiveness benefit under the Saving on a Valuable Education (SAVE) Plan. This action comes as 7.5 million borrowers are enrolled in SAVE, 4.3 million of whom have a $0 monthly payment. The action represents a clear message to borrowers who had low balances, informing them that they have done their part and deserve relief. Previously, the Administration announced in January that the shortened time to forgiveness component of the SAVE Plan would be accelerated nearly six months earlier than anticipated in order to provide these individuals the relief they have earned as quickly as possible. For borrowers to be eligible for this forgiveness they must be enrolled in the SAVE Plan, have been making at least 10 years of payments, and originally have taken out $12,000 or less for college. For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments.
All borrowers on SAVE receive forgiveness after 20 or 25 years, depending on whether they have loans for graduate school. The benefit is based upon the original principal balance of all federal loans borrowed to attend school, not what a borrower currently owes or the amount of an individual loan. Individuals who meet the eligibility criteria for forgiveness under the SAVE Plan will have their loans automatically discharged with no action needed on their part. Thus far under the current Administration, the following amounts also have been approved: $56.7 billion for more than 793,000 borrowers through fixes to Public Service Loan Forgiveness (PSLF); $45.6 billion for 930,500 borrowers through improvements to income-driven repayment; $11.7 billion for 513,000 borrowers with a total and permanent disability, including the provision of automatic discharges off a data match with the Social Security Administration; and $22.5 billion for 1.3 million borrowers through closed school discharges, borrower defense, and related court settlements.
Final Negotiated Rulemaking Session Of A USDE Committee On Institutions And Programs
A final negotiated rulemaking session of the U.S. Department of Education’s Institutional Quality and Program Integrity Committee occurred on March 4 through March 7, 2024. Three of the six topics in the discussion focus on Accreditation, State Authorization, and Distance Education. Following this session, the negotiator’s comments and a draft a Notice of Proposed Rulemaking (NPRM) will be made available. The latter item will be published in the Federal Register, making it possible for interested parties and the public to provide comments. A goal is to publish the final rule by November 1, 2024, with implementation set for July 1, 2025.
Enhancing Educational And Employment Opportunities In Rural Areas
The many positive aspects of living in a rural area may be partially offset by challenges associated with not having ready access to health resources, higher education institutions, and well-paying jobs. An analysis of this situation is provided in a new report from the Georgetown University Center on Education and the Workforce. Entitled “Small Towns, Unique Opportunities,” the document offers a countervailing view to a popular narrative that rural America has been “left behind.” The rural workforce in the U.S consists of up to 13% of the total 25-to-64-year-old working population and holds 12%, or a roughly proportionate share, of the country’s good jobs. It also provides recommendations to mitigate the region’s high labor-force non-participation rate (26%), low bachelor’s degree attainment rate (25%), and overall population decline. Rural areas have strengths that can be built upon with additional investments. To ensure rural workers have access to good jobs, efforts should be implemented to make education and training more easily available to rural residents, while simultaneously investing more in the skills that these individuals already possess. It also would be beneficial to plan ahead for rural growth. Technology is allowing a larger segment of members of the public to work from wherever they want, while the less-crowded, less-expensive rural lifestyle will continue to be attractive for many individuals.