We’re Back, and We Wanted to Catch You Up On Two Important Things From Earlier This Week

Overview
Following a little R&R last week, CSPEN has had a busy week attending and presenting at the Accrediting Council for Continuing Education & Training’s (ACCET) Annual Conference. Over the past three days there were two important “breaking news” events that occurred which we discussed in real time with ACCET’s membership, and wanted to make sure we shared with the entire community too!

First, on Tuesday, the U.S. Department of Education provided new details on the rollout of the 2025-2026 FASFA Form and the framework which will be used to beta test the Form beginning on October 1, 2024 and concluding with full access to all students, institutions, and third-party organizations on or before December 1, 2024 (hopefully). A reprint of the email notice, which also included links to the related press release and official electronic announcement, are provided below.

Second, just yesterday, the U.S. Supreme Court denied a request by the Biden-Harris administration to overturn previous injunctions that either partially or fully prevented the Department from offering the income-based repayment plan to borrowers. A brief summary of the arguments presented by both sides and House E&W Committee Chairwoman’s comments on the decision are provided below as well.

2025-2026 FASFA Form Update
The email announcement sharing the details on the rollout of next year’s FASFA Form and the process to get there stated:

The U.S. Department of Education today released (www.ed.gov/news/press-releases/us-department-education-releases-framework-2025%E2%80%9326-fafsa-testing-period-and-interest-form-first-beta-period) the framework for the testing period it will use starting October 1, 2024, ahead of making the 2025–26 Free Application for Federal Student Aid (FAFSA®) available to all students and contributors on or before December 1. The Department’s top priority remains ensuring the FAFSA form is stable and delivers a smooth and secure experience for families, schools, states, and other partners.

For the first beta test (Beta 1) – which will begin on October 1—the Department seeks to partner with community based organizations (CBOs) that can reach a broad and diverse set of student and contributor populations and have the ability to partner with institutions to test the ISIRs generated by submitted FAFSA forms. Further details can be found in our press release and electronic announcement (fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-08-27/availability-2025-26-fafsa-beta-1-interest-form) . Starting today through September 5, CBOs can submit a form (surveys.studentaid.gov/?dzmZgR-JhKox497TnPoFhj) to express interest in participating in Beta 1.

In subsequent beta tests, the Department will work with other types of organizations and institutions—in addition to CBOs—to recruit participants. The Department will seek to work with high schools that can host FAFSA completion nights and institutions that can recruit their returning students to submit the FAFSA form and process those students’ ISIRs. Working with high schools and additional institutions of higher education will allow the Department to test the FAFSA form with tens of thousands of students from a wider variety of student populations and help the Department identify and fix major issues before the application is available to all students and contributors. The Department also may directly recruit students in later beta tests. In the coming weeks, the Department will announce additional details about later beta tests and will provide information about how the Department will recruit participants, as well as how organizations can apply. Applicants for Beta 1 also will be
eligible to participate in later beta tests.

SCOTUS Decision on Legality of Biden-Harris Administration’s SAVE Program
The Department of Justice had sought to overturn the decision made by the 8^th Circuit Court precluding the implementation of the entire program, while not directly addressing other rulings which only partially block the SAVE program – while leaving other portions of the program intact. As concisely described in an article by Rebecca Carballo, PoliticoPRO–

“The Biden administration had asked the high court to vacate the 8th Circuit injunction, arguing that it was “overbroad.” The plaintiffs allege that the plan will cause financial harm to student loan servicer MOHELA because it would mean a loss of business.

‘The injunction blocks implementation of the rule for every borrower in the Nation — including millions who have no relationship to MOHELA,’ Justice Department lawyers wrote in their application to vacate the injunction.

Department of Justice lawyers also argued that under the Higher Education Act the Education Department has statutory authority to set the parameters of income-contingent repayment plans, and has had that authority for three decades.

The Republican-led states countered that the Biden administration would need approval from Congress to implement the program, citing a Nebraska Supreme Court case that struck down Biden’s student loan forgiveness program.

They have also suggested that the program would be expensive, costing $475 billion. The Congressional Budget Office estimated (www.cbo.gov/publication/58983?source=email#:~:text=The%20Congressional%20Budget%20Office%20estimates,over%20the%202023%E2%80%932033%20period.) the cost of the federal student loan program would rise by about $230 billion under the SAVE Plan over the 2023–2033 period.”

Shortly after the SCOTUS decision was released, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) released the following statement:

“I don’t know how many times the Biden-Harris administration needs to hear this before the message sinks in: its student loan schemes are illegal. Quit trying to force SAVE through, and instead work with Republicans on real solutions to the problem, like passing the College Cost Reduction Act.”

What’s Next
CSPEN encourages our community to seek out the appropriate CBOs to work with to be engaged in the FASFA Beta testing and remain focused on all related announcements regarding the process. CSPEN will do all that we can to make sure you are kept in the know.

As far the latest SCOTUS decision, it is now one of three key verdicts that has not been favorable to the Biden-Harris administration. SCOTUS already denied the proposed student loan debt cancellation policy in 2023, ruled against the Department just week’s ago on the Title IX regulations that went into effect – in some states, but not in all or for certain students in named groups, and now this ruling. All of the pending litigation will continue to go through the regular appeals process, just like the litany of other legal challenges in process related to other regulatory revisions (BDR, FVT/GE, 150% Rule/Bare Minimum Rule et. al.). CSPEN will continue to provide updates on all of these legal challenges as new developments arise.