By: Sharon Bob
Ranking Member Scott Issues Press Release Announcing Release of GAO Report on Effectiveness of the FAFSA Simplification Act
On May 11, 2026, Ranking Member of the House Education and Workforce Committee Bobby Scott (D-VA) issued a press release announcing the release of a new report by the Government Accountability Office (GAO) titled, “Pell Grants: Overall Student Eligibility Increased After Free Application for Federal Student Aid (FAFSA) Simplification Act.” The GAO report found in the 2024-2025 school year that about 570,000 more students were eligible for Pell Grants after the Department of Education implemented the simplified FAFSA compared with the 2023-2024 school year. In addition, about 1.9 million more students were eligible for the maximum Pell Grant of $7,395 that year. The GAO report also found that more than 90 percent of students in vulnerable populations, such as those who were homeless or were in foster care, were eligible for a Pell Grant in the 2024-2025 school year.
Ranking Member Scott said: “A college degree remains the surest path to economic mobility. College graduates earn more, experience lower unemployment rates, and are better positioned to support their families and contribute to their communities. In 2020, Congress took decisive action to reform the financial aid process and expand access to higher education for students across the country. I was proud to work with former Senate HELP Committee Chair Lamar Alexander to pass the FAFSA Simplification Act, which was an important first step to expand access for students and families.”
Bonamici, Merkley, Mannion, Underwood, and Alsobrooks Launch Effort to Overturn Student Loan Rule
On May 7, 2026, Congresswoman Suzanne Bonamici (D-OR), Senator Jeff Merkley (D-OR), Congressman John Mannion (D-NY), Congresswoman Lauren Underwood (D-IL), and Senator Angela Alsobrooks (D-MD) announced they will introduce a Congressional Review Act (CRA) resolution to repeal the Department of Education’s final rule that caps federal student loans and overhauls the student loan system. The announcement said that the CRA will be introduced as soon as the rule is officially received by Congress. “The final rule unnecessarily limits the definition of a professional degree for the purpose of establishing federal loan caps, which will force future nurses, social workers, teachers, firefighters, physical and occupational therapists, and many others to turn to often predatory, high-interest private lenders to complete their degrees. It also officially eliminates the Grad PLUS program and creates new, less affordable loan repayment options for all borrowers.”
The Resolution, which is included in the announcement, states:
“Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That Congress disapproves the rule submitted by the Department of Education relating to ‘‘Reimagining and Improving Student Education – Federal Student Loan Program Final Regulations’’ (91 Fed. Reg. 23768 (May 1, 2026)), and such rule shall have no force or effect.”
While moving forward with a CRA allows the Members to force a vote on the bill, it is unlikely to move forward or pass the President’s desk.
Chairman Cassidy and Senator Grassley Introduce the Improving Financial Aid Offers for Students Act
On April 29, 2026, Senate Health, Education, Labor, and Pensions (HELP) Committee Chairman Bill Cassidy (R-LA) and Senator Chuck Grassley (R-IA) introduced the Improving Financial Aid Offers for Students Act. The bill aims to make the cost of college more transparent and make higher education more affordable through the dissemination of information to students and families considering postsecondary education. In an effort to provide more consumer-friendly information to families, the bill moves to:
- Standardize financial aid letters;
- Require full cost transparency, including direct and indirect expenses; and
- Improve loan transparency.
Senator Sanders Releases Report Detailing How Department of Education’s Layoffs Left Students Facing Discrimination and Harassment
On April 28, 2026, Senator Bernie Sanders (I-VT), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), released a report detailing how President Trump’s Department of Education’s layoffs of workers, including those at the regional offices of the Office of Civil Rights (OCR), left students facing discrimination or harassment throughout the country. According to the report, OCR reached the lowest number of resolution agreements in over a decade. In 2025, OCR reached only 112 resolution agreements, representing 1 percent of all of the pending cases. The number of disability discrimination cases that were resolved dropped from 390 in 2024 to 83 in 2025.
Senator Sanders said: “Every child in America should be able to go to school safely and be treated with dignity. Unfortunately, this report makes clear that the Trump Administration’s illegal efforts to dismantle the Education Department have been a disaster for students and families across this country.”
ED Releases Updated Text to AIM Negotiators
The Department of Education released materials to the negotiators in advance of the second and final session of the negotiated rulemaking committee for the Accreditation, Innovation, and Modernization (AIM) rulemaking to be held on May 18-22, 2026. The updated draft regulatory text is found at:
https://us.list-manage.com/13RzrrNmWLt?e=eb4273277b&c2id=335f5e59a1bbbbd177dff76bcac0a7a8.
FSA Plans to Increase Staffing Levels by 45 Percent
On May 11, 2026, NCHER Briefing reported that an internal presentation delivered in mid-April indicated that Federal Student Aid (FSA) is planning to hire 334 full-time employees by 2027. FSA’s plan to hire new employees represents a 45 percent increase in staffing levels following the Department of Education’s 2025 reduction in force (RIF) efforts. Even though the White House is trying to close down the Department, including the recent transfer of the $1.7 trillion student loan portfolio from ED to the Department of Treasury, the demand for additional staff reflects FSA’s recent increase in responsibilities, including the implementation of some provisions under the One Big Beautiful Bill Act as well as processing backlogs of student loan forgiveness applications.
FSA Reminds Institutions to Renew their UEI
On May 5, 2026, Federal Student Aid (FSA) issued an Electronic Announcement (GENERAL-26-26) to remind institutions to renew their Unique Entity ID (UEI). Institutions that receive Title IV funds must have a UEI registered in the General Services Administration system and must renew the UEI each year. G5 verifies that a UEI is active before carrying out administrative actions, such as making an award or performing UEI changes or reassignments.
ED Publishes Final Regulations Implementing Changes to the Loan Programs Resulting from OBBBA
On May 1, 2026, the Department of Education published the final rule in the Federal Register, titled Reimagining and Improving Student Education (RISE), which describes changes to the federal student loan programs resulting from the One Big Beautiful Bill Act (OBBBA). On April 30, 2026, the Department of Education issued a press release announcing the release of the final rule that will “lower the cost of college and make student loan repayment easier.” Under Secretary of Education Nicholas Kent said: “President Trump’s Working Families Tax Cuts Act addresses longstanding challenges in higher education and federal student lending, including exorbitant tuition costs, unchecked borrowing, and a confusing maze of repayment options that too often leave borrowers with higher balances despite making payments. The final rule will help ensure students can access higher education without racking up excessive loan debt, offer repayment options that better serve borrowers, and force institutions to reduce costs.” Federal Student Aid (FSA) issued an Electronic Announcement announcing the availability of the Reimaging and Improving Student Education – Federal Student Loan Final Regulations, which is included as a link.
Some of the key provisions include the following:
- Establishes annual and aggregate loan limits, creates a new maximum aggregate, and establishes less than full-time reduction of annual loan limits. A significant clarification in the final rule concerns the new lifetime maximum loan limit. The lifetime maximum aggregate amount of loans shall be $257,500, which exclude Federal PLUS loans made to that student as a parent on behalf of a dependent undergraduate student. However, Graduate PLUS loans are to be counted against the lifetime maximum limit.
- Permits institutions to limit borrowing for specific programs.
- Eliminates the Grad PLUS program to “help curb tuition growth by ending unlimited borrowing.”
- Simplifies the student loan repayment by creating a new Tiered Standard plan and establishing a new income-driven repayment plan known as the Repayment Assistance Plan, which eliminates negative amortization.
- Does not expand the list of degree programs it deemed professional for purposes of eligibility to borrow at higher unsubsidized loan limits. ED chose to categorize 11 degree programs as “professional,” giving them access to unsubsidized loans equal to $50,000 per year and a $200,000 limit. The 11 programs are: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. All other programs deemed “graduate” programs will permit students to have access to unsubsidized loans equal to $20,500 per year and a $100,000 limit.
The rule will take effect on July 1, 2026.
On April 30, 2026, House Committee on Education and Workforce Ranking Member Bobby Scott (D-VA) released a statement after the final RISE rule was published: “The Department of Education’s final student loan rule will put getting a college degree out of reach for millions of students, particularly for low- and middle-income Americans. Capping graduate borrowing, removing key pathways that help students afford advanced degrees, and making student loans harder to repay does not ‘solve’ the student loan crisis – it makes it worse.”
FSA Releases Processing Updates Resulting from the OBBBA
On April 24, 2026, Federal Student Aid (FSA) issued an Electronic Announcement (LOANS-26-05), outlining the updates made to the National Student Loan Data System (NSLDS) to support the changes made as a result of the enactment of the One Big Beautiful Bill Act (OBBBA). Updates include new academic level codes and updates to the aggregate loan limits. The OBBBA-related changes were available in NSLDS beginning April 26, 2026, in anticipation of the start of the 2026-2027 award year.
On April 23, 2026, FSA issued an update to its March 9, 2026, Electronic Announcement (APP-26-02), sharing additional details about the transition to the updated ISIR layout on Sunday, April 26, 2026. The first batch of ISIRs using the new layout were generated on Monday, April 27, 2026, and delivered to school and state SAIG mailboxes on Tuesday morning. The Electronic Announcement also describes updates in several FSA systems and FAFSA processing resulting from OBBBA. The updates include the update to the FAFSA Processing System (FPS) to account for the OBBBA change that extends Pell Grant eligibility to a student enrolled in an eligible workforce program even if the student has already obtained a bachelor’s degree. All changes to the FPS, NSLDS, and COD systems were released on April 26, 2026. Eligibility changes and modified loan limits will go into effect on July 1, 2026.
ED Proposes Accountability Framework that will Hold All Institutions Accountable for Programs with Low Earning Outcomes
On April 20, 2026, the Department of Education published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability. On April 17, 2026, the Department issued a press release indicating “[t]he proposal will hold all institutions and their programs accountable for low earning outcomes, regardless of the tax status or sector.” Under Secretary of Education Nicholas Kent said: “This consensus-backed framework will drive meaningful change in postsecondary education, ending years of regulatory whiplash and addressing student debt that has left too many students worse off.” Comments are due May 20, 2026.
In January 2026, the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee reached consensus on the entire package of accountability regulations. The STATS regulations amend the Gainful Employment and Financial Value Transparency (GE/FVT) regulations, retain the earnings premium but eliminate the debt-to-earnings metric. It applies the earnings premium to all programs at all institution types, and results in loss of Direct Loan eligibility for programs that fail the test in two of three years. The proposed regulations allow programs that fail in a single year to teach-out currently enrolled students if the institution agrees not to enroll any new students, and to close the program. Reporting requirements are unchanged from the previous GE/FVT reporting requirements.
The NPRM poses several questions, including a request for feedback on its proposal to use IRS data as its source for earnings data in the earnings premium calculation. The Department also asks for comments on calculating an earnings threshold against which to measure program completer earnings for graduate programs in “uncommon fields of study and in less populated states,” where sample sizes are too small to produce reliable earnings thresholds.
ED Drops Payment Demand from the University of Arizona to Cover Loan Debt Cancelled for Students who Claimed They were Defrauded by Ashford University
An Inside Higher Ed article of April 20, 2026, reported that the Department of Education has dropped the demand from the University of Arizona for payment to cover $72 million in loan debt canceled for students who had claimed they were defrauded by Ashford University. In 2020, the University of Arizona purchased Ashford University, which became the University of Arizona Global Campus. The Department had sought funds from the University of Arizona in 2023, but the University contended that they should not have to pay since the actions taken by Ashford University had occurred prior to its purchase. In a letter from Federal Student Aid (FSA), the Department concluded that it was not appropriate to bring a recoupment action against the University of Arizona Global Campus.
FSA Announces Launch of FAFSA Real-Time Fraud Detection
On April 15, 2026, Federal Student Aid (FSA) announced in an Electronic Announcement (APP-26-03) that the Department of Education has implemented a real-time identity fraud detection capability within the FAFSA form. In partnership with a leading financial services firm, ED will screen and assess risk as students and families complete the FAFSA form, which creates an automated, streamlined process that occurs in real-time. This approach will allow legitimate students to proceed through the FAFSA process quickly, while requiring a small portion of applicants to complete additional steps to confirm their identity as part of the online FAFSA submission process.
Under the new system, all students will still be able to submit and process their FAFSA form, and their information will be sent to schools and state agencies. However, if a high-risk applicant’s identity cannot be confirmed during the online process, their record will be marked as rejected. While schools are not required to act on these records immediately, they must follow standard verification procedures if a student reaches out for assistance. “Given that the Department suspects the vast majority of rejected applications to be fraudulent, we anticipate that there will only be a small number of applications that would need to undergo additional screening by an institution via in-person verification by institutions.”
FSA Releases New Student-Directed Guidance Resulting from OBBBA Changes
On April 15, 2026, Federal Student Aid (FSA) published updated information on studentaid.gov, providing guidance to students on changes to loan limits and repayment plans made under the One Big Beautiful Bill Act (OBBBA). The guidance includes a list of scenarios for student borrowers, Parent PLUS borrowers, borrowers pursuing Public Service Loan Forgiveness (PSLF), and other frequently asked questions.
AIM Negotiated Rulemaking Committee Completes First Week
At the conclusion of the week of April 13-17, 2026, the Department of Education had completed the first of its two sessions on its Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking. The AIM Committee is charged with updating Federal regulations regarding the recognition of accrediting agencies, reducing steps required to change accreditors, and focusing on student achievement and outcomes. The first four days of the meeting were spent reviewing the Department’s 150-page proposed rules. By the end of the session, the Department had made some changes and updates to its proposed rules to address some of the concerns raised by the negotiators, but the Department maintained many of their proposals. During the session, Jeff Andrade, the Department’s negotiator and Deputy Assistant Secretary for Postsecondary Education Policy, repeated that the proposed changes are within the Department’s statutory authority and necessary to promote innovation and prevent a monopolized accreditation market.
Previously, on April 6, 2026, the Department of Education had released materials for the AIM negotiated rulemaking sessions. The materials include the committee member list, initial draft regulations, and a discussion document outlining the proposed changes. Also included is a document titled, “Summary and Discussion of Initial Draft Regulations,” which describes a number of regulatory changes:
- Reducing regulatory burden for all accrediting agencies;
- Ensuring accreditor integrity;
- Ensuring compliance with all Federal and State laws;
- Focusing on student outcomes; and
- Encouraging affordability.
The second in-person committee session will be held on May 18-22, 2026.
Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter and Verville, PC
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February 15, 2026
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