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View of the Reflecting Pool and Washington Monument in Washington D.C.
View of the Reflecting Pool and Washington Monument 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 15

This Week In Washington

On Wednesday, a coalition of 25 states and Washington, D.C. filed a lawsuit against the Department of Education (ED), challenging ED’s final rule on professional degree definitions coming out of the Reimagining and Improving Student Education (RISE) Committee. The lawsuit argues that ED exceeded its authority by adopting a narrow definition of “professional” programs, which specifies which graduate students qualify for higher loan limits. The coalition argues that the One Big Beautiful Bill Act only imposes three criteria for a program to be considered a professional degree, and the final rule unlawfully adds criteria to the statutory definition of professional degree.

Last week, the 10-year U.S. Treasury Note auction yield was 4.468%. Federal student loan interest rates are set by Congress using a formula tied to high yield of the 10-year Treasury Note auction held each May, plus a fixed add-on depending on the loan program. Based on this, the federal loan interest rates for the 2026-27 award year will increase and will be the following:

  • Graduate/Professional Direct Unsubsidized Loans: 8.07%
  • Parent and Graduate PLUS Loans: 9.07%

News You Can Use

The American Bar Association (ABA) voted last week to eliminate a rule requiring law schools to demonstrate a commitment to diversity in recruitment, admissions, and student programming. The rule has been suspended since February 2025. This change will not become final until ABA’s House of Delegates considers it as early as August and then debates about revisions. The approval process may push the diversity rule’s official elimination to sometime in 2027.

The Pell Institute for the Study of Opportunity in Higher Education released the Indicators of Higher Education Equity in the United States: 2026 Historical Trend Report. The report analyzes the nation’s progress in expanding college access while highlighting barriers limiting degree attainment for many students.

Recent Legislation

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

H.R. 8759 – [Rep. Scott Perry (R-PA-10)] would amend the Higher Education Act (HEA) to allow institutions of higher education to elect to cosign federal student loans made to students attending the institution.

S. 4568 – Nursing is a Professional Degree Act [Sen. Jeff Merkley (D-OR)] would classify post-baccalaureate nursing degrees as professional, permitting borrowers to borrow at the higher loan limit. A companion bill, H.R. 8659 [Rep. Jennifer Kiggans (R-VA-2)] was also introduced in the House.

S. 4531 – Student Aid Fraud Oversight and Accountability Act of 2025 [Rep. Jon Husted (R-OH)] would amend HEA to require the Secretary of Education to prioritize program reviews of institutions that disburse federal financial aid without verifying the identity of a student whose FAFSA presents a reasonable suspicion of identity fraud.

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