Higher Ed Policy Roundup: Vol. 9 - Issue 36

This Week In Washington

The Trump Administration launched its plan to dismantle the Education Department (ED) this week. Six department offices will be affected by plans to move operations to four separate agencies. For instance, the Labor Department is set to take over most of ED’s higher education programs, which include grants that support student success, Historically Black Colleges and Universities (HBCUs), and other Minority-Serving Institutions (MSIs). Secretary Linda McMahon shared that the ED is still exploring the best plan for several other offices, including the Office of Federal Student Aid.

ED also announced that Richard Lucas will serve as the Acting Chief Operating Officer of Federal Student Aid. He will work closely with Under Secretary Nicholas Kent to help implement key reforms established under the One Big Beautiful Bill Act (OBBBA).

Early this week, more than 40 Democrats in both chambers urged the White House against selling the federal student loan portfolio to private investors. In the letter, Democrats argue that the sale of student loans would cause 40 million borrowers to lose important protections such as income-driven repayment (IDR), death and disability discharges, and relief for those defrauded by their schools.

News You Can Use

The National Association of Student Financial Aid Administrators (NASFAA) published updates to the 2025-26 negotiated rulemaking topics and current statuses chart to reflect recent final rules on the Public Service Loan Forgiveness (PSLF) Program.

The American Action Forum (AAF) published a primer on nonprofit student loan providers. AAF provides a historical context on nonprofits in higher education, their role following the elimination of the Federal Family Education Loan Program (FFELP), and most recently their role following the passage of OBBBA.

Recent Legislation

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

H.R. 6134 – [Rep. Randy Feenstra (R-IA-4)] would require colleges and universities to disclose the total amount of interest that would be paid over the life of a loan for certain federal student loans.