Student Loan Programs: Federal Policy, Forgiveness, and Repayment Options

This report examines federal student loan programs, including Direct Subsidized and Unsubsidized Loans, PLUS Loans, and consolidation loans. It describes income-driven repayment plans, Public Service Loan Forgiveness, and the SAVE plan.

The report discusses the Biden Administration's student loan forgiveness initiatives, including the legal challenges to broad-based forgiveness in Biden v. Nebraska (2023) and subsequent targeted relief efforts. It analyzes the total outstanding federal student loan portfolio, default rates, and borrower demographics.

Policy considerations include proposals for comprehensive student loan reform, the appropriate role of federal lending in higher education financing, interest rate setting mechanisms, borrower protections against institutional fraud, and the fiscal implications of expanded forgiveness programs.