Higher Ed Policy Roundup: Vol. 9 - Issue 17

On Monday, the Education Department (ED) issued a Dear Colleague Letter (DCL) urging higher education institutions to conduct outreach to former students reminding them of their obligation to repay their federal student loans. The DCL comes on the day that ED resumed collection activities on defaulted federal student loans. Institutions were also reminded that they are at risk of losing their Title IV eligibility if they do not keep their cohort default rates low. ED asked that the outreach take place no later than June 30, 2025.

Late last week, President Trump released a “skinny budget” for fiscal year 2026, outlining some of his funding priorities for the upcoming year. Regarding education, the budget requests a 15.3% reduction in ED’s budget from the 2025 enacted level, including an elimination of the Child Care Access Means Parents in School (CCMAPIS) program. A more comprehensive budget request is expected later this month.

According to a new analysis published by TransUnion, while ED has resumed collections on federal student loans in default, approximately one in five borrowers with a payment due are seriously delinquent.

A recent study from the Lumina Foundation and Gallup revealed that 57% of adult respondents not currently enrolled in a degree or credential program have considered pursuing one within the past two years.

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

S. 1557 – Net Price Calculator Improvement Act [Sen. Chuck Grassley (R-IA)] would improve the effectiveness and accessibility of net price calculators, ensuring students receive early, personalized estimates of higher education costs and financial aid before applying.

S. 1558 – Understanding the True Cost of College Act [Sen. Chuck Grassley (R-IA)] would establish a universal financial aid offer form and standardize the terminology used to describe financial aid, enabling students to more easily compare packages across higher education institutions.

S. 1559 – Know Before You Owe Federal Student Loan Act [Sen. Chuck Grassley (R-IA)] would enhance federal loan counseling requirements by mandating annual counseling before new loans are disbursed and allowing students to choose how much to borrow rather than defaulting to the maximum amount. A companion bill, H.R. 3153, was introduced in the House by Rep. Kim Young (R-CA-40).

S. 1569 – Fairness in Higher Education Accreditation Act [Sen. Jim Banks (R-IN)] would bar accreditors from requiring colleges to adopt race or sex-based quotas as a condition of accreditation and mandate that accreditors consider a school’s commitment to academic freedom.

H.R. 3146 – Fairness in Higher Education Accreditation Act [Rep. Daniel Goldman (D-NY-10)] would classify service as a volunteer firefighter or emergency medical technician as qualifying public service for eligibility under the Public Service Loan Forgiveness (PSLF) program.

H.R. 3165 – Student Loan Tax Elimination Act [Rep. Lloyd Smucker (R-PA-11)] would eliminate origination fees on Federal Direct Loans.