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The House Education and Workforce Committee on Wednesday advanced legislation that would overturn President Joe Biden’s student loan forgiveness plan and end the pause on federal student loan payments. 

The Federal Trade Commission (FTC) on Monday announced that it stopped two student loan debt relief schemes that defrauded $12 million from borrowers by using deceptive claims about repayment programs and loan forgiveness that did not exist.

Interest rates are determined each June 1 for the upcoming award year by adding a fixed percentage to the high yield of the 10-year Treasury note auctioned at the final auction prior to June 1. As a result of yesterday’s auction, the interest rate for federal loans first disbursed on or after July 1, 2023 are expected to increase from 4.99% to 5.49% for undergraduate Direct Loans, from 6.54% to 7.05% for graduate/professional Direct Unsubsidized Loans, and from 7.54% to 8.05% for Parent and Grad PLUS loans. The interest rate caps for these loans are 8.25%, 9.5 %, and 10.5% respectively.

A new report out of the Government Accountability Office (GAO) found that Federal Student Aid (FSA) had “adequate processes” for implementing provisions outlined in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to GAO, FSA met its obligations in waiving the requirement that Title IV of the Higher Education Act of 1965 funds be returned, canceling borrowers’ obligation to repay Direct Loans, and excluding federal Pell Grant disbursements from Pell lifetime usage calculations for students who withdrew because of the coronavirus pandemic.

NASFAA's annual Business Meeting this year will be conducted virtually at 2:00 p.m. ET on May 24, 2023, as part of the Policy Update Webinar. The meeting will include reports on NASFAA's financial status, governance and oversight, and diversity efforts. The NASFAA Policy Update will include the latest updates on what's happening in Washington related to student aid policy. The Policy Team will provide updates on Higher Education Act reauthorization, student aid funding, regulatory action, and close with a question-and-answer session. Register now.

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