NEWS & BLOG
EDCAP’s Student Loan News Updates & Insights: Mar 4, 2026
- SAVE Plan: Where Things Stand — and What to Do
- Parent PLUS: Less Than a Month to Act in Our Advised Window
- Relief & Repayment Updates
- Graduate & Professional Students: Planning Under the New Caps (Grad PLUS Phase‑Out)
- FAFSA & Workforce Pell
- For Practitioners & Colleges: Delinquency & Default Is Surging—Be a “Trusted Guide”
Major shifts landing now: Parent PLUS deadlines, Grad PLUS winding down, big SAVE court update, updated FAFSA/Pell Grants—and relief finally hitting: automatic discharges, new IDR/PSLF forgiveness, Navient payments, and SAVE plan balance adjustments.
SAVE Plan: Where Things Stand — and What to Do
A federal district court dismissed the Missouri‑led SAVE lawsuit rather than approving the settlement that would have ended SAVE. The plan is technically intact for now, but the future remains uncertain as the Education Department (ED) could still pursue other avenues (appeal, reviving a separate injunction, or formal repeal via rulemaking). Learn more.
What didn’t change because of this ruling
- Borrowers in the SAVE administrative forbearance remain in forbearance, and interest has been accruing since August 1, 2025 under a prior ED announcement.
- Months in this forbearance do not earn IDR or PSLF forgiveness credit.
Relatedly, some borrowers are getting balance corrections for interest that should’ve been 0% early in the SAVE forbearance.
Do Now:
Use our Repayment Plan Calculator to compare IBR vs. Standard and be ready to choose a plan once ED sets a transition timeline so you aren’t auto‑placed into a plan you didn’t select. If you want to restart qualifying payments toward long‑term forgiveness, consider switching to an eligible plan sooner.
👉 Get SAVE transition guidance.
Parent PLUS: Less Than a Month to Act in Our Advised Window
To keep access to IDR and forgiveness, apply to consolidate at StudentAid.gov before April 1, then enroll in ICR and make one ICR payment to unlock IBR. After July 1, 2026, Direct Parent Plus or consolidations finalized after this date are expected to be locked into Standard with no IDR/forgiveness. Consolidation can take 4–6 weeks or longer with potential delays; act now.
👉 Get step‑by‑step guidance.
Relief & Repayment Updates
- Automatic discharges (Sweet v. McMahon): Courts rejected ED’s latest delay, clearing the way for automatic discharges, refunds, and credit repair for tens of thousands of post‑class applicants defrauded by their colleges; notices expected to begin in late March and will continue for a year. Learn more.
- More forgiveness announced: Recently, 40,000+ borrowers qualified for discharge via IDR (IBR/ICR/PAYE) and about 18,000 via PSLF, with overpayments refunded. Watch your inbox if you’ve been repaying 10–25 years. If you reached IDR‑forgiveness eligibility in 2025 but the discharge posts in 2026, there are no federal taxes on that discharge; otherwise, many IDR discharges in 2026 are federally taxable now. PSLF is not federally taxable. Learn more.
- SAVE forbearance balance fixes: Some borrowers are seeing balance reductions where servicers misapplied interest during months that should have been at 0%. Check your loan portal for messages or adjustments. Learn more.
Graduate & Professional Students: Planning Under the New Caps (Grad PLUS Phase‑Out)
Starting July 1, 2026, Grad PLUS ends for new borrowers. Graduate borrowing shifts to fixed caps (e.g., $20,500 annual / $100,000 aggregate for most graduate programs; $50,000 / $200,000 for defined “professional” fields). Legacy protections may apply if you’re enrolled and have borrowed before July 1, 2026.
👉 Learn more.
FAFSA & Workforce Pell
- FAFSA 2027–28: ED has begun development with a target October 1, 2026 launch, with faster renewals and easier reuse of parent information across siblings. Learn more.
- Workforce Pell (starts July 1, 2026): Pell eligibility expands to 8–15 week certificate and credential programs at colleges and trade schools that meet state/ED criteria (stackable credentials, strong completion/placement). Final rules and state approvals are rolling out; most students are unlikely to see funds until fall 2026 or later. Watch your state’s approved list. Learn more.
For Practitioners & Colleges: Delinquency & Default Is Surging—Be a “Trusted Guide”
ED’s latest data show nonpayment rates ≥25% at 1,800+ institutions, and the Department is pressing colleges to support repayment outcomes or risk Title IV consequences. Proactive, non‑forbearance outreach matters; students do better when schools—not servicers—lead clear, timely communication. If you are a higher education institution in New York State, reach out to us (edcap@cssny.org) to see how we can help you address your Default Cohort Rates. Learn more.