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Policy and Advocacy Student Loans Financial Aid Legal Education News Summary
Policy and Advocacy Student Loans Financial Aid Legal Education News Summary

Higher Ed Policy Roundup: Vol. 10 - Issue 3

This Week In Washington

Last week, the Department of Education (ED) announced a temporary delay on federal student loan collections, including Wage Garnishment and the Treasury Offset Program. This pause allows ED to implement repayment reforms under the One Big Beautiful Bill Act (OBBBA). The delay will allow defaulted borrowers time to consolidate loans, enter repayment agreements, or begin rehabilitation under the new rules. ED did not specify how long the pause on involuntary collections will be.

This week, appropriators in Congress released bill text of four spending bills for Fiscal Year 2026 (FY26): Labor-Health and Human Services (HHS)-Education, Defense, Transportation-Housing and Urban Development (HUD), and Homeland Security. The $1.2 trillion package would fund ED at $79 billion for FY26, similar to the FY25 levels for most programs:

  • $24.6 billion for Federal Student Aid programs, including:
    • $22.5 billion for the Pell Grant program and a $7,395 maximum Pell Grant award.
    • $2.06 billion for Student Aid Administration.
  • $3.3 billion for higher education programs, including:
    • $1 billion to assist Historically Black Colleges and Universities (HBCUs) and Minority Serving Institutions (MSIs) in the Aid for Institutional Development Account.

The House plans to vote on the measure this week. Congress has until January 30th to pass the remaining spending bills to avoid a partial government shutdown.

News You Can Use

The latest pulse survey from the American Council of Education (ACE) found that 70% of senior higher education leaders are concerned about government interference in academic freedom and institutional autonomy. Respondents also expressed concern about declining enrollment among graduate and international students given the elimination of the Grad PLUS program.

A report released this month by researcher Jason Cohn shows that federal student loan borrowers are paying their debt more slowly than before the COVID-19 payment pause, and delinquency rates have climbed back to pre-pandemic levels.

Recent Legislation

There were no relevant student-aid related bills recently introduced for consideration by the 119th Congress (2025-26). 

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