Higher Ed Policy Roundup: Vol. 10 - Issue 10

This Week In Washington

Last week, the Education Department (ED) and Treasury Department announced they have signed an interagency agreement, referred to as the “Federal Student Assistance Partnership.” Under this agreement, Treasury will assume responsibility for collecting defaulted federal student loan debt and provide operational support to ED’s efforts to return borrowers to repayment. Treasury will also assume responsibility for Federal Student Aid’s Default Resolution Group, which provides direct support to defaulted borrowers.

Early this week, a federal judge extended a temporary restraining order against ED, blocking the department from enforcing its Admissions and Consumer Transparent Supplement (ACTS) reporting requirement. Earlier this month, 17 Democratic attorneys general sued ED and the Office of Management and Budget, arguing that the ACTS reporting requirement was rushed and created a burden for institutions. The extension granted this week allows all public institutions in the 17 states more time to prepare for the new reporting requirement.

News You Can Use

The Chronicle of Higher Education published an analysis of over 20,000 public submissions from graduate school deans, faculty members, and adjunct faculty. The comments showed widespread concern over the elimination of the Grad PLUS program. Respondents shared concern that this change to student lending could harm graduate programs’ enrollment.

The Institute for College Access & Success (TICAS) published an article urging state leaders to be prepared for upcoming federal lending changes. The article highlights strategies states can adopt to best support students in financing their education.

Recent Legislation

The following bill(s) have been recently introduced for consideration by the 119th Congress (2025-2026):

H.R. 8045 – Student Loan Interest Elimination Act [Rep. Joe Courtney (D-CT-2)] would amend the Higher Education Act of 1965 (HEA) to eliminate interest on student loans, establish the Education Affordability Trust Fund, increase annual and aggregate loan limits, and more. A companion bill, S.4169 [Sen. Peter Welch (D-VT)], was also re-introduced in the Senate.

H.R. 8009 – The Student Protection and Success Act [Rep. Erin Houchin (R-IN-09)] would amend HEA to provide for institutional ineligibility based on low cohort repayment rates and to require risk-sharing payments of institutions of higher education.