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Lincoln Memorial in Washington D.C.
Lincoln Memorial in Washington D.C.
Policy and Advocacy Student Loans Financial Aid News Summary
Policy and Advocacy Student Loans Financial Aid News Summary

Higher Ed Policy Roundup: Vol. 10 - Issue 13

This Week In Washington

On Monday, the Education Department (ED) released the official Notice of Proposed Rulemaking (NPRM) on accountability. The proposed rule includes the draft language agreed to by negotiators during the January sessions of the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee. Comments on the proposed rule must be received by May 20, 2026. 

This week ED provided a new interpretation on loan limits, stating that borrowers who received a Grad PLUS loan prior to July 1, 2026 will have their loans counted toward the One Big Beautiful Bill Act (OBBBA) lifetime limit. Borrowers under a legacy provision will be able to continue borrowing under previous terms for the remainder of their program, or for up to three years, provided they remain continuously enrolled. According to the report, the lifetime borrowing limit implemented through OBBBA will affect students with a Grad PLUS loan who:

  • Do not maintain continuous enrollment;
  • Need more than three years to complete their program; or
  • Previously borrowed above the $257,500 cap and later return to pursue an additional degree.

News You Can Use

The National Association for College of Admission Counseling released a study analyzing how institutions distribute financial aid. The report found that high-income students are more likely to receive merit-based aid while lower-income students continue to face unmet financial needs.

The Postsecondary Education & Economics Research Center released data highlighting how new federal graduate loan limits are expected to impact students, institutions, and programs. The data shows that 33% of law school borrowers will be above the loan limit.

Recent Legislation

The following bills have been recently introduced for consideration by the 119th Congress (2025-26):

H.R. 8445 – Stop DEI Act [Rep. Young Kim (R-CA-40)] would prohibit Federal education funds from being made available to schools that consider race, sex, ethnicity, color, or national origin in violation of civil rights laws.

S. 4365 – FAFSA Verification Act [Rep. Tommy Tuberville (R-AL)] would ensure all federal loan applicants complete background checks, provide Social Security numbers, and are American citizens.

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