The U.S. Education Department office that administers grants, loans, and work-study.
The largest class-action settlement in American history has expanded automatic debt relief for an additional 170,000 borrowers after a 2022 agreement; thousands more had already received relief, with ongoing appeals affecting how balances are discharged. The Education Department is pressing ahead with broader repayment changes amid lawsuits challenging caps on borrowing.
The government has extended the autopay-driven interest reduction through June 2028, expanding relief for borrowers on the Save plan and others returning to repayment. Auto pay enrolment by Dec. 31 is required for the 1% reduction; for those already enrolled, the discount remains in place. Default and forbearance-related risks persist as millions face repayment.