Higher Ed Policy Roundup: Vol. 9 - Issue 14

In March, the American Federation of Teachers sued the Education Department (ED) for removing the income-driven repayment (IDR) application from ED’s website, effectively denying borrowers access to lower monthly payments and credit toward Public Service Loan Forgiveness (PSLF). ED restored the application in late-March but did not resume processing of applications. In its response to the lawsuit filed last week, ED states that it expects that servicers will be able to resume processing IDR applications by May 10, 2025 but does not have an expected date for when the backlog of applications will be cleared.

In an amended declaration filed this week in relation to the lawsuit, ED corrected an error in a previous filing. The amended declaration clarifies that loan servicers are working to update “the treatment of spousal information for ICR, PAYE, and IBR such that married borrowers filing separate income tax returns or separated from their spouses will have the spouse counted in the family size for the purposes of calculating monthly payment amounts under IDR plans.”

As the Trump Administration continues to implement cuts to education at the federal level, concerns are growing about the future of Historically Black Colleges and Universities (HBCUs), which rely on federal and state funding for 54% of their total revenue.

A recent bill analysis from the America First Policy Institute outlines how the College Cost Reduction Act is expected to be implemented through the upcoming budget reconciliation process. 

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

S. 1253 – College Admissions Accountability Act [Sen. Jim Banks (R-IN)] would establish the Office of the Special Inspector General for Unlawful Discrimination in Higher Education within the Department of Education. A companion bill, H.R. 2583, was introduced in the House by Rep. David Taylor (R-OH-2).

H.R. 2634 – Free Speech On Campus Act [Rep. Kevin Kiley (R-CA-3)] would require higher education institutions participating in Title IV of the Higher Education Act of 1965 to provide a written statement and educational programming to new students on the rights of students under the First Amendment to the Constitution.

H.R. 2664 – HBCU Arts Act [Rep. Alma Adams (D-NC-12)] would provide additional funding for Historically Black Colleges and Universities. 

H.R. 2691 – [Rep. Barry Moore (R-AL-1)] would abolish the Department of Education. 

H.R. 2521 – American Free Application for Federal Student Aid (FAFSA) Opportunity Act [Rep. Christopher Smith (R-NJ-4)] would amend the Higher Education Act of 1965 to eliminate the sibling penalty.

S. 1402 – Returning Education to Our States Act [Sen. Mike Rounds (R-SD)] would abolish the Department of Education.

S. 1411 – Preparing and Resourcing Our Student Parents and Early Childhood Teachers (PROSPECT) Act [Sen. Cory Booker (D-NJ)] would establish federal grants to expand access to high-quality early childcare at community colleges and Minority-Serving Institutions. A companion bill, H.R. 2845, was introduced in the House by Rep. Jahana Hayes (D-CT-5).

H.R. 2809 – Fair College Admissions for Students Act [Rep. Young Kim (R-CA-40)] would prohibit higher education institutions participating in Title IV of the Higher Education Act of 1965 from giving preferential treatment in the admissions process to legacy students or donors. 

H.R. 2829 – Strengthening Efforts for Relief and Vital Incentives for Community Service and Engagement (SERVICE) Act [Rep. Joe Courtney (D-CT-2)] would amend the PSLF program to reduce the number of qualifying payments from 120 to 96, expand the qualifying deferments and forbearances allowed, and improve borrowers’ rights and transparency.