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Policy and Advocacy Public Service Loan Forgiveness Financial Aid News Summary
Policy and Advocacy Public Service Loan Forgiveness Financial Aid News Summary

Higher Ed Policy Roundup: Vol. 9 - Issue 27

This Week In Washington

On Monday, the Education Department (ED) issued a Notice of Proposed Rulemaking (NPRM) to modify the Public Service Loan Forgiveness (PSLF) program. The regulatory process comes after an Executive Order that was issued in March directed ED to prevent borrowers whose employers engage in activities with a “substantially illegal purpose” from benefitting from PSLF. The activities that the NPRM would consider as having a “substantially illegal purpose” include:

  • Supporting terrorism;
  • Aiding and abetting violations of federal immigration laws;
  • Aiding and abetting illegal discrimination;
  • Child abuse including the chemical and surgical castration or mutilation of children; and
  • Engaging in a pattern of violating state tort laws.

ED will accept comments from the public on the proposed changes until September 17, 2025. Comments can be submitted through the Federal Register.

News You Can Use

Financial aid administrators across the country have reported difficulties with ED services since mass layoffs in March, according to survey results published by the National Association of Student Financial Aid Administrators (NASFAA).

A recent analysis published by The Century Foundation found that the enactment of the One Big Beautiful Bill Act will result in many more adults struggling to obtain private loans to fund graduate education.

According to a U.S. News survey, 61% of undergraduate students surveyed are reconsidering their graduate or professional degree aspirations due to recent changes in student loan options.

Recent Legislation

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

H.R. 4973 – Fulbright Teacher’s Loan Forgiveness Act [Rep. Donald Beyer (D-VA-8)] would amend the Higher Education Act (HEA) to allow participation in certain Fulbright programs to qualify for the repayment plan for public service employees.

H.R. 4862 – Lowering Obstacles to Achievement Now (LOAN) Act [Rep. Bobby Scott (D-VA-3)] would double the federal Pell Grant, improve the PSLF program, and reduce interest rates.

H.R. 4893 – National Guard and Reserve Loan Fairness Act [Rep. Seth Magaziner (D-RI-2)] would ensure members of the reserve components of the Armed Forces receive appropriate credit towards PSLF.

S. 2485 – Adjunct Faculty Loan Fairness Act of 2025 [Sen Richard Durbin (D-IL)] would amend section 455(m) of the HEA of 1965 to allow adjunct faculty members to qualify for PSLF.

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