On September 5th, 2024, the U.S. District Court for the Southern District of Georgia issued a temporary restraining order on the proposed student loan relief regulations. On October 3rd, 2024, a judge ruled that Georgia does not have standing for this case and has directed the case to move to Missouri. The Missouri judge has extended the restraining order.
The Department of Education proposed new forgiveness options for borrowers. This plan would expand forgiveness for borrowers with four different forgiveness options.
- Borrowers who owe more than they did at the start of repayment:
- Your current balance on an unconsolidated Direct Loan, Federally held FFEL, Federally held Perkins loan is greater than the balance of that loan when it entered repayment.
- Your current balance on a consolidation loan is greater than the balance of the loans included in your consolidation loan when the original loans entered repayment.
- Borrowers who first entered repayment many years ago:
- You have only undergraduate loans, and at least one of those loans entered repayment on or before July 1, 2005.
- Or, you have at least one graduate loan, and at least one of your undergraduate or graduate loans entered repayment on or before July 1, 2000.
- Borrowers who are otherwise eligible for loan forgiveness but have not yet applied:
- You haven’t enrolled in an income-driven repayment (IDR) plan but would be eligible for relief.
- Or you would be eligible for closed school discharge or other types of forgiveness opportunities but haven’t successfully applied for that relief.
- Borrowers who enrolled in low-financial-value programs:
- You attended an institution that failed to provide sufficient financial value.
- You attended an institution that failed one of ED’s accountability standards for institutions.
Once more news about this proposed forgiveness is released, we will continue to update Savi users.