Higher Ed Policy Roundup: Vol. 9 - Issue 38

This Week In Washington

Last week, the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) negotiated rulemaking committee reached consensus on how to implement the Workforce Pell Grant program created in the One Big Beautiful Bill Act (OBBBA). The committee will reconvene in the new year to discuss program accountability.

On Monday, a federal judge denied a request by the Education Department (ED) for an 18-month extension to decide borrower defense claim decisions. The Sweet v. McMahon lawsuit, originally filed in 2019, accused ED of improperly delaying decisions on borrower defense to repayment claims. The affected borrowers belong to the last group covered under a 2022 settlement with ED to resolve a class-action lawsuit accusing ED of improperly delaying borrower defense applications. Borrowers were set to receive automatic relief in late January if the agency did not decide their cases. This final group in the settlement has a total outstanding loan balance of $11.8 billion, according to the agency’s court filing.

News You Can Use

Inside Higher Ed published an article on how graduate programs are bracing for new loan caps implemented by OBBBA. Some graduate programs shared that they are emphasizing a mix of increased corporate engagement and expanded loan options for their students, but many programs are still researching best options for students.

The California Policy Lab released a new analysis, showing that most student loans are still effectively paused and one in four requiring payment are delinquent. Last week’s SAVE settlement will require 7.7 million borrowers to restart payments after nearly five years of pause, which could result in millions more borrowers experiencing financial distress.

NPR released a new podcast episode, “Will new loan limits lower the cost of grad school?,” which discussed the impact of OBBBA on graduate school costs and student borrowing.

Recent Legislation

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

H.R. 6718 – Professional Student Degree Act [Rep. Michael Lawler (R-NY-17)] would amend the Higher Education Act (HEA) of 1965 to define “professional degree” and lists the graduate programs which meet the criteria. Similar legislation, H.R. 6739 – [Rep. Debbie Dingell (D-MI-6)], was also introduced to better define professional degrees.

S. 3487 – PSLF Payment Completion Fairness Act [Sen. Andy Kim (D-NJ)] would ensure that borrowers who have performed qualifying public service are eligible for Public Service Loan Forgiveness.

S. 3538 – [Sen. Jim Banks (R-IN)] would amend the Higher Education Act (HEA) of 1965 to eliminate origination fees on Federal Direct Loans.