Higher Ed Policy Roundup: Vol. 9 - Issue 34

This Week In Washington

On Monday, two lawsuits were filed challenging the Education Department’s (ED) final rule on Public Service Loan Forgiveness (PSLF), which excludes employers that engage in “specific enumerated illegal activities that have a substantial illegal purpose” from PSLF eligibility.

• Commonwealth of Massachusetts et al v. U.S. Department of Education, filed by a coalition of 21 state attorneys general.
• National Council of Nonprofits et al v. McMahon et al, filed by the National Council of Nonprofits along with a coalition of cities, counties, and nonprofits.

Both cases state that statute directs ED to forgive loan borrowers who work at any government or 501(c)(3) employer without restriction. They allege that the PSLF rule change unlawfully excludes entities based on ideology and violates the First Amendment rights of workers.

Throughout this week, the Reimagining and Improving Student Education (RISE) committee held several negotiated rulemaking sessions, with officials from ED working through several terms within the regulatory text. On Wednesday, RISE discussed a new proposal from ED on how to define a professional degree.

News You Can Use

The National Association of Student Financial Aid Administrators (NASFAA) shared a preview of comments it plans to submit to ED on the proposed revisions to the Federal Student Aid feedback system. NASFAA advocated for simplified language and refinement of menu options to help avoid borrower confusion.

The Federal Reserve Bank of New York released new data this week that states Americans’ household debt levels are now at a record high. The report also reveals that Americans’ student loan debt has reached $1.65 trillion and nearly 10% of all student debt was reported as 90 days delinquent or more.

Recent Legislation

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