Higher Ed Policy Roundup: Vol. 8 - Issue 31

On Monday, Secretary of Education Miguel Cardona sent a letter to colleges and universities sharing updates about implementation of the Free Application for Federal Student Aid (FAFSA). According to Secretary Cardona, the 2025-2026 FAFSA is on track to be operational by December 1, the date the U.S. Department of Education (ED) set for itself earlier this year. The letter also provides updates on the Office of Federal Student Aid’s (FSA) modernization efforts, staffing at call centers, beta testing of the application, and obstacles faced by families without Social Security numbers.

This letter came just one day before the Government Accountability Office (GAO) released a report detailing the rocky rollout of the 2024-2025 FAFSA. GAO found that technical problems caused delays and prevented some students and families from completing the application. These challenges contributed to a decrease of nine percent fewer high school seniors and other first-time applicants submitting a FAFSA, with the largest declines among low-income students, according to GAO. In addition to releasing a report, representatives from GAO testified before Congress on Tuesday about their findings.

On Wednesday, ED published a blog post detailing the improvements it has made to the Public Service Loan Forgiveness (PSLF) program. Now that it has completed the transition of information from loan servicers to FSA in order to centralize servicing of student loans at www.studentaid.gov, it has resumed processing PSLF forms. Borrowers can once again see updated payment counts, including how many payments are left until forgiveness. ED also stated that “in the coming weeks” it will finalize the payment count adjustment, an administrative fix that involves reviewing borrower accounts to ensure they get credit for income-driven repayment and PSLF.

The Brookings Institution recently published a paper on the struggles of today’s student loan borrowers, revealing that borrowing and subsequent debt have increased the most among vulnerable populations and riskier institutions (e.g., high default rates, low degree completion, etc.).

According to a survey by The Pew Charitable Trusts, financial constraints are the primary driver of missed student loan payments.

The following bill(s) have been recently introduced for consideration by the 118th Congress (2023-2024):

S. 5033 – Child Care Access Means Parents in School (CCAMPIS) Reauthorization Act [Sen. Tammy Duckworth (D-IL)] would reauthorize and fully fund CCAMPIS, the only federal program that exclusively supports on-campus child care services and ensures ED is meeting the needs of student-parents and caregivers. A companion bill, H.R. 9559, was introduced in the House by Rep. Katherine Clark (D-MA-5).

H.R. 9810 – The Child Care Workforce Development Act [Rep. Katherine Clark (D-MA-5)] would authorize the Secretary of Health and Human Services to administer a repayment assistance program for early childhood educators.

S. 5091 – Basic Assistance for Students in College (BASIC) Act [Sen. Alex Padilla (D-CA)] would establish a $1 billion competitive grant program to help colleges and universities address students’ unmet basic needs and enhance data sharing between federal agencies that manage public assistance programs. A companion bill, H.R. 9669, was introduced in the House by Rep. Norma Torres (D-CA-35).

H.R. 9521 – Student Food Security Act of 2024 [Rep. Jahana Hayes (D-CT-5)] would expand eligibility for the Supplemental Nutrition Assistance Program (SNAP), allow students to use SNAP benefits at on-campus dining facilities, increase outreach by state and federal agencies to food-insecure students, and establish an annual grant program to aid colleges and universities in better identifying and serving students with food and housing needs.

S. 5108 – Parent PLUS Parity Act [Sen. Chris Van Hollen (D-MD)] would provide financial relief to Parent PLUS borrowers by expanding their income-driven repayment plan options and permitting them to qualify for Public Service Loan Forgiveness. A companion bill, H.R. 9753, was introduced in the House by Rep. Alma Adams (D-NC-12).

H.R. 9746 – [Rep. Maxine Waters (D-CA-43)] would allow borrowers of Parent PLUS loans to repay their loans via an income-contingent or income-based repayment plan.