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Photo of the U.S. Capitol Building taken in the evening
Photo of the U.S. Capitol Building taken in the evening
Policy and Advocacy Legislation Student Loans Public Service Loan Forgiveness News Summary
Policy and Advocacy Legislation Student Loans Public Service Loan Forgiveness News Summary

Higher Ed Policy Roundup: Vol. 9 - Issue 33

This Week In Washington

The Education Department (ED) released a final rule, which opponents argue will unfairly target organizations unpopular with the current administration, modifying the Public Service Loan Forgiveness (PSLF) program. ED’s action comes after an Executive Order issued in March directed the Secretary of Education to prevent borrowers whose employers engage in activities with a “substantially illegal purpose” from benefitting from PSLF. The activities that will be considered 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.

Employers found in violation may later regain PSLF eligibility after either a 10-year disqualification period from the date of determination, or upon approval of an ED–approved corrective action plan. Borrowers employed by an organization deemed to have a “substantially illegal purpose” will no longer earn qualifying PSLF credit for service performed after the effective date of the employer’s disqualification. The new rule will go into effect on July 1, 2026.

News You Can Use

As of mid-October, the Law School Admission Council (LSAC) reported that the 2026 law school admission cycle has seen a 28.2% increase since last year. As compared to two years ago, current applicants are up 73.1%.

This week, results from the Higher Education Compact Poll conducted by Quinnipiac University showed that most Americans oppose giving the federal government a bigger role in how colleges operate. However, 58% of those polled believe colleges should freeze tuition for five years to get more federal funding.

A similar poll published this week by the Public Religion Research Institute found that 70% of Americans disagreed that the federal government should control admissions, faculty hiring, and curriculum at colleges and universities.

Recent Legislation

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

H.R. 5834 – Shutdown Student Loans for Feds Act [Rep. Sarah Elfreth (D-MD-3)] would provide student loan relief for Federal employees when there is a lapse in appropriations. A companion bill, S. 3070, [Sen. Angela Alsobrooks (D-MD)] was also introduced.

H.R. 5850 – Guaranteeing Retention and Aid During Shutdowns Act (GRAD) Act [Rep. Shomari Figures (D-AL-2)] would amend the Higher Education Act of 1965 to require institutions not to terminate or alter the enrollment status of a student due to disruptions in Federal student aid caused by a lapse in appropriations. This would be a requirement for all schools participating in Title IV programs.

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