Higher Ed Policy Roundup: Vol. 9 - Issue 30

This Week In Washington

On Monday, the Education Department (ED) announced that it would be providing Historically Black Colleges and Universities (HBCUs) and Tribally Controlled Colleges and Universities (TCCUs) with a one-time $495 million investment. Part of this funding comes from discretionary funding that ED announced it will no longer provide to some Minority-Serving Institution grant programs, due to claims that the programs discriminate by providing benefits to institutions based on racial or ethnic criteria. The funding is in addition to what is proposed for HBCUs and TCCUs in the fiscal year 2025 budget.

On Tuesday, the House Education and Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled “No More Surprises: Reforming College Pricing for Students and Families.” In his opening statement, Subcommittee Chairman, Burgess Owens (R-UT-04), stated that Members of Congress “have proposed legislation that would establish standardized financial aid offers to ensure students and families can accurately compare college costs.”

Regarding the One Big Beautiful Bill Act, Amy Laitinen, Senior Director of Higher Education, New America, emphasized the challenges university financial administrators face trying to understand recent changes. She also stated that medical school costs will be particularly challenging to cover under the new loan limits, leaving students to turn to a predatory private loan market. Watch the full hearing for more information.

News You Can Use

According to a recent credit trend report released by Fair Isaac Corporation (FICO), more than 10% of consumers with a student loan on their credit file haven’t made a payment in more than 90 days. The report also found that Gen Z borrowers saw the largest year-over-year credit score drop of any group since 2020.

The American Federation of Teachers recently filed a class action complaint stating that, under the Trump Administration, student loan borrowers who are entitled to debt forgiveness have not been able to receive it due to ED backlogs.

Recent Legislation

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