Higher Ed Policy Roundup: Vol. 10 - Issue 5

This Week In Washington

Last Friday, the Department of Education (ED) published a Notice of Proposed Rulemaking (NPRM) to implement the statutory changes to the Title IV of the Higher Education Act programs included in the One Big Beautiful Bill Act (OBBBA). The NPRM defines graduate and professional programs to determine which programs would be eligible for higher loan limits using a specified criteria and list of qualifying fields developed through negotiated rulemaking. The NPRM would also phase out several existing repayment plans and consolidate borrowers into a newly created tiered Standard Plan and a single income-driven plan, the Repayment Assistance Plan (RAP).

This week, Congress cleared legislation to fund ED at $79 billion. The package funds ED through September 2026 and maintains level funding for federal education programs. The bill also includes language aimed at curtailing the Trump administration’s efforts to dismantle ED.

On Monday, a group of Senate Democrats, led by Sen. Elizabeth Warren (D-MA), Minority Leader Chuck Schumer (D-NY), and Health, Education, Labor, and Pensions Committee Ranking Member Bernie Sanders (I-VT), released a report summarizing information provided by six for-profit private education loan lenders. The report highlights how the providers plan to respond to the new federal student loan limits under OBBBA.

News You Can Use

A recent report by the National College Attainment Network (NCAN) reflects an increase in Pell Grant eligibility with more than 1.5 million additional qualifying recipients this academic year. The report attributes this growth to a simplified financial aid application process.

The National Association of Student Financial Aid Administrators (NASFAA) published an article on understanding the analyses of new accountability under OBBBA. The deep dive clarifies the changes in the Accountability in Higher Education and Access through Demand-drive Workforce Pell (AHEAD) committee reached consensus during negotiated rulemaking back in January.

Recent Legislation

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

H.R. 7341 – Growing Reputable Academic Department (GRAD) Act [Rep. Jennifer McClellan (D-VA-4)] would expand access to federal funding for graduate level STEM programs at HBCUs and Predominantly Black Institutions (PBIs).

S. ___ – The Student Loan Bond Expansion Act of 2026 [Sen. Chuck Grassley (R-IA), Sen. Peter Welch (D-VT)] would exempt Qualified Student Loan Bonds (QSLBs) from the Private Activity Bond (PAB) cap and alternative minimum tax, allowing state-based, nonprofit lenders to offer student loans at lower interest rates.