By: Sharon H. Bob, Ph.D.

BDR Functionality is Available

On October 9, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-62) advising institutions that the issue that led to the temporary unavailability of the borrower defense to repayment (BDR) functionality in FSA Partner Connect has been resolved. To account for the period during which institutions could not access borrower defense functionality, FSA has extended the due date by seven calendar days for each case with a pending response. Previously, on October 7, 2026, FSA had informed institutions that beginning October 2026, institutions will use FSA Partner Connect to respond to notifications from FSA regarding borrower defense applications filed by their former or current borrowers. FSA completed the transition of this functionality from the Common Origination and Disbursement System (COD) to FSA Partner Connect on October 4, 2026. However, after the transition, FSA identified an issue with the release and temporarily removed the functionality from FSA Partner Connect while the issue was being resolved.

FSA Announces Changes to Campus Security Requirements Related to the Stop Campus Hazing Act

On October 9, 2026, Federal Student Aid (FSA) released a Dear Colleague Letter (DCL) (GEN-26-05) reminding institutions of the various changes to campus security requirements included in the Stop Campus Hazing Act (SCHA), enacted on December 23, 2024, which renamed and amended the Jeanne Clery Campus Safety Act (Clery Act), Section 485(f) of the Higher Education Act (HEA). The SCHA included changes to the HEA that impact the required campus security reporting process through the annual security report (ASR). The SCHA requires institutions to disclose hazing incidents that were reported to campus security authorities or local agencies in its ASR.

There are three new requirements for institutions included in the SCHA:

  1. Compile statistics on hazing incidents reported to campus security authorities or local police for inclusion in the institution’s ASR, which occurred on Clery Act geography and meet the new Clery Act definition of hazing. [Institutions must have included 2025 hazing statistics for these incidents in their 2026 ASRs.]
  2. Implement anti-hazing policies with specific emphasis on hazing prevention programs.
  3. Compile a Campus Hazing Transparency Report (CHTR) that summarizes findings concerning any student organization that violates the institution’s hazing policy and publish that report on the institution’s website if the institution identifies one or more hazing violations.

FSA Updates Spreadsheet to Include the Latest FVT/GE Data Reported by Institutions

On October 8, 2026, Federal Student Aid (FSA) released an updated spreadsheet in an Electronic Announcement (GENERAL-26-49) to include the latest Financial Value Transparency and Gainful Employment (FVT/GE) data reported by institutions for the 2024, 2025, and 2026 cycles. Data for the 2026 FVT/GE reporting cycle was due on October 1, 2026. The Department has determined that more than 1,000 institutions failed to meet this reporting deadline and are now considered delinquent. These institutions have until January 15, 2027, to submit the required data for the 2026 FVT/GE reporting cycle.

Additionally, nearly 1,400 institutions have not yet reported all required FVT/GE data for the 2024 and 2025 FVT/GE reporting cycles. Institutions now have until January 15, 2027, without being considered delinquent, to submit any unreported or under-reported FVT/GE data from the 2024 and 2025 reporting cycles.

ED is granting institutions one final extension to submit FVT/GE reporting for the 2024, 2025, and 2026 cycles, with all required data due by January 15, 2027. The Electronic Announcement said it would consider taking further action against institutions that fail to submit all required FVT/GE data by the deadline, which may include heightened cash monitoring, fines, sanctions, or other actions.

FSA Announces the Beginning of the 2026 Active Confirmation Period

On October 2, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-60) announcing the beginning of the 2026 active confirmation period on October 2, 2026. Every organization must confirm each user’s access to its Student Aid Internet Gateway (SAIG) mailboxes and online services by December 31, 2026. Active confirmation is an annual process that requires administrators to verify user access to FSA systems and SAIG mailboxes. This process helps safeguard sensitive information by ensuring only authorized individuals within the organization retain access.

FSA Announces FY 2023 Official Cohort Default Rate

On September 30, 2026, Federal Student Aid (FSA) released an Electronic Announcement (LOANS-26-08), which included an Official National Student Loan Cohort Default Rate Briefing for FY 2023 official cohort default rates (CDRs). The FY 2023 CDRs were calculated using the cohort of student loan borrowers who entered repayment on their Direct Loans between October 1, 2022, and September 30, 2023, and who defaulted between October 1, 2022, and September 30, 2025.

The FY 2023 national cohort default rate is 0.4 percent, up from 0.0 percent for FY 2022. The Electronic Announcement stated that the FY 2023 CDRs were significantly affected by the pause on federal student loan payments that began on March 13, 2020. During the pause, borrowers with student loans were not required to make any payments, and no borrowers with ED-held loans entered default.

However, the newly released nonpayment rate data shows that about 1,800 institutions have nonpayment rates at or exceeding 25 percent. The nonrepayment rate provides the percentage of Direct Loan borrowers, on an institutional basis, who entered repayment between January 2020 and May 2025 and whose federal student loans were more than 90 days delinquent as of August 2026. FSA is strongly encouraging those institutions to take actions in preparation for the upcoming release of the draft FY 2024 CDRs, which will be issued early next year. FSA offered recommendations for actions that may be taken by institutions.

The official FY 2023 CDRs are:

  • Public: 0.3 percent
  • Private: 0.3 percent
  • Proprietary:  0.8 percent

ED and Treasury Launch the Defaulted Loans Support Center

On September 30, 2026, the Department of Education and the Department of the Treasury announced the launch of the Defaulted Loans Support Center, a new online portal that gives borrowers with defaulted federal student loans a simpler way to understand their options, address default, and return to payment. According to Secretary of Education Linda McMahon, “This landmark announcement is a historic step toward breaking up the federal education bureaucracy while streamlining resources for student loan borrowers in default.” Secretary of the Treasury Scott Bessent said: “The new Defaulted Loans Support Center marks an important early achievement of the Treasury-ED Federal Student Assistance Partnership, bringing Treasury’s unique financial and operational expertise to the program, providing defaulted borrowers a clearer path back to repayment, and building a more efficient and accountable system that better serves borrowers and taxpayers.”

ED Extends Enrollment Period for Student Loan Interest Rate Reduction Benefit

On September 29, 2026, the Department of Education announced that it has extended the enrollment period for the 1 percent interest rate reduction benefit by an additional three months. Borrowers who enroll in auto pay by December 31, 2026, or those who are already enrolled, will benefit from the interest rate reduction through June 30, 2028. Since the Department announced the interest rate reduction earlier this summer, almost 2 million borrowers have enrolled in the auto pay, helping ensure they make their payments on time.

The press release explains how a borrower can enroll in auto pay. In addition, the press release describes how borrowers can apply for an income-driven repayment (IDR) plan.

ED Repeals 2024 Title IX Final Rule

On September 29, 2026, the Department of Education published a Final Rule in the Federal Register, repealing the Department’s 2024 Final Rule amending the Title IX regulations, which is known as the Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance, and restoring the regulatory text that existed prior to the 2024 Final Rule. The Department stated that it is taking this action because the 2024 Final Rule was vacated in full on January 9, 2025, by the U.S. District Court for the Eastern District of Kentucky, and has not been enforced at any time after January 31, 2025. For this reason, the Department is repealing the 2024 Final Rule because the Code of Federal Regulations (CFR) needs to be updated. The “regulatory text that existed before promulgation of the 2024 Final Rule, which is in force, should be recodified in the Code of Federal Regulations (CFR).”

In a press release of September 28, 2026, the Department stated that it is rescinding the Biden Administration’s illegal regulation implementing Title IX of the Education Amendments of 1972 and officially reinstating the first Trump Administration’s 2020 Title IX rule in the Code of Federal Regulations. Secretary of Education Linda McMahon said: “Today’s rulemaking clears the Biden Administration’s illegal rewrite of Title IX from the Code of Federal Regulations and restores the commonsense language promulgated in the first Trump Administration, which we have been enforcing since the first days of the Administration.”

The press release described the efforts the Trump Administration has taken to reverse the Biden Administration’s “immeasurable harm to women and girl” by:

  • Returning Enforcement to Biological Reality;
  • Securing Resolution Agreements with Higher Education Institutions;
  • Creating Title IX Special Investigations Team;
  • Initiating Investigations; and
  • Taking Enforcement Action.

Department Provides Guidance on Swatting Threats

On September 25, 2026, the Department of Education released a Dear Colleague Letter (DCL GEN-26-04), which provides guidance on the criminal nature of anonymized threats, specifically swatting. Swatting is a form of harassment designed to deceive an emergency service provider into sending a police or emergency service response team to another person’s or organization’s address or location based on the false reporting of a serious law enforcement emergency. Swatting calls are dangerous not only to the targeted victims but also to the first responders involved.

The purpose of the DCL is to remind all educational institutions of the importance of preparing and responding to swatting incidents appropriately. The DCL includes procedures for responding to these incidents and available resources on this issue. According to the DCL, anonymized threats are a growing problem for colleges, universities, and K-12 schools, as well as their faculty, staff, and student bodies. Swatting also costs taxpayers millions of dollars in personnel and equipment, lost classroom time, and property damage.

In a press release of September 25, 2026, Under Secretary Nicholas Kent said: “The Trump Administration is unwavering in its commitment to protecting safety and security of students, teachers, and staff across the country. Acts of swatting pose a significant threat and will be treated with the utmost seriousness, including by federal law enforcement.”

FSA Announces its In-Person FSA Training Conference on December 14-16, 2026

On September 23, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-59) announcing that the in-person Federal Student Aid (FSA) Training Conference for Financial Aid Professionals will take place on December 14-16, 2026, at the Gaylord National Resort & Convention Center in Oxon Hill, MD. The agenda will include the latest federal financial aid policy and operational updates, keynote addresses from U.S. Department of Education leaders, general sessions about key topics, and a resource center. Additional details will be available soon.

FSA Launches the 2027-2028 FAFSA

On September 23, 2026, Federal Student Aid (FSA) officially launched the 2027-2028 FAFSA form, a week before the October 1, 2026 deadline. Those who submitted their FAFSA form during the beta testing period do not need to resubmit their FAFSA. According to Secretary of Education Linda McMahon in a press release, “We are incredibly proud to launch the earliest FAFSA form in our nation’s history, which ensures American students and families have access to their critical resources they need on their postsecondary education journey.” She noted that this marks the second time in its history that the FAFSA form was released before the deadline.

Department of Labor Awards $65 Million to Seven State College Consortia to Build Infrastructure for Workforce Pell Grants

On September 23, 2026, the Department of Labor announced that it has awarded $65 million to community college consortia in seven states through the sixth round of its Strengthening Community Colleges Training Grants (SCCTG) program, targeting the capacity gap that has slowed the rollout of Workforce Pell Grants. The Employment and Training Administration, which administers the grant program, will be used to fund the statewide systems and consortia to develop short-term programs that can meet Workforce Pell Grant eligibility thresholds and improve data integration between education and state workforce systems.

Seven leading institutions and 102 consortium members share the money, with awards ranging from about $6 million to $10.8 million. Recipients include Pueblo Community College ($10.77 million), Hawkeye Community College ($10.8 million), Northwest Mississippi Community College ($8.54 million), the Junior College District of St. Louis ($10.8 million), the Community College of Rhode Island ($5.96 million), Pellissippi State Community College ($7.66 million), and the Alamo Community College District, which leads a 37-college consortium in Texas ($10.47 million). Grantees will build programs across advanced manufacturing, construction, and skilled trades, nuclear energy, information technology, artificial intelligence infrastructure, and shipbuilding.

ED Releases Toolkit to Support Dual Enrollment for Adults

In September, the Department of Education’s Office of Career, Technical, and Adult Education released a toolkit to help states and colleges use Ability-to-Benefit (ATB) to expand dual enrollment for adults without a high school diploma or recognized equivalent. ATB permits otherwise eligible adults enrolled in an eligible career pathway program to access federal student aid after passing an approved test, completing six credit hours or 225 clock hours applicable to a credential, or qualifying through a federally approved state process.

FSA Posts Updated Reports to the FSA Data Center

On September 22, 2026, Federal Student Aid (FSA) announced in an Electronic Announcement (GENERAL-26-57) that it has posted a series of updates to it data center, the centralized online source for information about FSA programs and operations. The outstanding federal student loan portfolio includes 42.3 million recipients totaling more than $1.7 trillion, which represents almost a four percent dollar increase from June 2025. The Electronic Announcement stated that last fall, between October and December 2025, was the first time that many borrowers’ accounts could potentially fall into default (e.g., at least 360 days delinquent), following the pause on federal student loan repayments. This quarter, the cumulative number of recipients in default increased by about 400,000 to more than 9.3 million. Their outstanding federal student loans total $234 billion.

More than 17.4 million recipients, or about 43 percent of the 40.5 million recipient accounts that ED is responsible for managing, have at least one loan in a current repayment or delinquency status, which is a slight increase since March 2026, as some borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan began transitioning out of forbearance and into repayment.

In July 2025, ED first posted nonpayment rate data, which provides the percentage of Direct Loan borrowers, on an institutional basis, who entered repayment between January 2020 and May 2025, and whose federal student loans were more than 90 days delinquent. The newly released nonpayment rate data shows that about 2,100 institutions have nonpayment rates at or exceeding 25 percent, an increase of about 100 institutions since the May 2026 report. FSA reminded institutions that while the nonpayment rate differs from the official cohort default rate (CDR) calculation, the nonpayment rate can provide institutions insight into their repayment portfolio until the CDR calculation is no longer affected by the COVID-19 pandemic-related flexibilities.

NACIQI Recommends Suspending APA and Makes No Decision on the ABA

At the recent meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI), NACIQI voted to recommend suspending the recognition to the American Psychological Association (APA) Commission on Accreditation over its alleged failures to address antisemitism in its programs. The American Bar Association (ABA) was the subject of discussion on the first day, and NACIQI voted, after multiple failed votes, to make no recommendation to the Department on whether to renew or deny recognition to the ABA. The ABA had received an 86-page report alleging violations of federal regulations.

The Commission on Colleges and Universities (formerly known as the Southern Association of Colleges and Schools) received approval from NACIQI. While NACIQI agreed that the Accreditation Commission for Acupuncture and Herbal Medicine (ACAHM) needs improvement, NACIQI gave its approval to ACAHM, with the requirement that it correct compliance concerns within 12 months. The renewal of Accrediting Bureau of Health Education Schools and the Transnational Association of Christian Colleges and Schools, Accreditation Commission will be considered at the next meeting.

All recommendations go to Under Secretary Nicholas Kent for a final determination.

ED Approves Fifth Workforce Pell Grant Programs in North Carolina

On September 25, 2026, the Department of Education announced that it has approved six new Workforce Pell Grant programs in North Carolina, making it the fifth state in the nation to receive program approvals. Eligible students at Forsyth Technical Community College can now use Federal Pell Grant funds to enroll in programs that will prepare students for remunerative careers as firefighters, electronical powerline installers and repairers, welders, cutters, paramedics, nursing assistants, and more.

Secretary of Education Linda McMahon said: “It was incredible to join local business leaders in my state of North Carolina to break the news that Workforce Pell is finally delivering on the promise of putting students first. These programs are fast, affordable, and aligned with real workforce needs. This approval represents a commitment to expanding opportunity and strengthening the Tar Heel State’s talent pipeline.”

ED Approves Six Workforce Pell Grant Programs in Texas

On September 22, 2026, the Department of Education announced that it has approved six new Workforce Pell Grant programs in Texas, which was the fourth state to be approved. Eligible students at Kilgore College and Weatherford College can use Federal Pell Grants to enroll in short-term, high-quality career training programs designed to prepare students for in-demand jobs. At Kilgore College, students can use Federal Pell Grants to enroll in Electrical Power Lineman, Phlebotomy Technician, and Pharmacy Technician programs. At Weatherford College, students can use Federal Pell Grants to access HVAC, Basic Machining, and Advanced programs.

Secretary of Education Linda McMahon said: “Texas is leading the way when it comes to making postsecondary education work for American families. Approving these programs is a major step toward opening new market-driven alternatives to traditional two- and four-year degrees.”

ED Approves Three Workforce Pell Grant Programs in Nebraska

On September 14, 2026, the Department of Education announced that it has approved three Workforce Pell Grant programs in Nebraska, which was the third state to be approved. Eligible students at Metropolitan Community College can now use Federal Pell Grant funds to enroll in its Phlebotomy Technician, Pharmacy Technician, and CompTia Tech+ with Google IT Support programs.

Under Secretary of Education Nicholas Kent said: “Workforce Pell is all about putting American students and businesses first, propelling students into high-wage, in-demand careers throughout the Cornhusker State.”

Metropolitan Community College President Randy Schmailzl said: “Students shouldn’t have to choose between getting the skills they need and spending years in school or taking on a significant debt. Workforce Pell opens the door to faster, more affordable pathways into good careers, and Metropolitan Community College was ready to walk through the door.”

Judge Blocks Final Rule Limiting How Long International Students Can Remain in U.S.

Judge F. Dennis Saylor IV of the U.S. District Court for the District of Massachusetts ordered a preliminary injunction that delays the Department of Homeland Security’s (DHS) Final Rule of July 17, 2026, that replaced the “duration of status” rule for F, J, and I classifications with admissions for a fixed time period of authorized stay so that there are additional protections and oversight of these nonimmigrant categories. The Final Rule was to take effect on September 15, 2026. Judge Saylor wrote in his order that the Trump officials did not respond adequately to public comments on the Final Rule, which violated the Administrative Procedure Act.

An article of September 14, 2026, in Inside Higher Ed, said that there were 22,000 public comments, most of which opposed the Final Rule. The commenters generally argued that the Final Rule would negatively impact a variety of students who need longer than four years to complete their program, especially Ph.D. students, whose programs take five years or more to complete. They also argued that a U.S. education may become less attractive to international students.

Middle States Commission on Higher Education Leaves Council of Recognized Accrediting Commissions (C-RAC)

On September 1, 2026, the Middle States Commission on Higher Education (MSCHE) announced it is leaving the Council of Recognized Accrediting Commissions (C-RAC). [C-RAC made the “R” in its name stand for “recognized” instead of “regional.” In 2019, the Trump Administration had eliminated the geographic boundaries of the accrediting agencies.] The announcement said: “While we continue to partner individually with other accrediting commissions, MSCHE is driving broader partnerships that best support our work in this changing higher education environment.”

Effective July 1, 2026, the Northwest Commission on Colleges and Universities exited from C-RAC. The five remaining members are the Accrediting Commission for Community and Junior Colleges, the Higher Learning Commission, the New England Commission of Higher Education, the Commission on Colleges and Universities (formerly known as the Southern Association of Colleges and Schools Commission on Colleges), and the WASC Senior College and University Commission.

C-RAC is a voluntary association and has no staff or budget, but is an informal organization to share ideas.

Justice and Health and Human Services Departments Announce that UC Berkley’s Law School and Duke University’s Medical School Discriminated Against White and Asian Applicants

The Departments of Justice (DOJ) and Health and Human Services (HHS) announced that they have determined the University of California (UC) Berkley’s law school and Duke University’s medical school each discriminated against white and Asian applicants in their admissions process. The DOJ and the Department of Education jointly investigated UC, and HHS investigated Duke. To date, the Trump Administration has launched at least 28 investigations into admissions practices at universities.

The ABA Accrediting Agency Votes to Eliminate its Standard Requiring a Commitment to Diversity

On September 8, 2026, the Council of the American Bar Association (ABA) voted 10 to 6 to eliminate the standard requiring law schools to demonstrate a commitment to diversity and inclusion among students. Known as Standard 206, the now repealed metric has been discussed for years. In August, the Department of Education staff officially recommended that the ABA be stripped of its recognition, which will be discussed at the next meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI) on September 23, 2026. After that, Under Secretary Nicholas Kent will make the final decision.

Trellis Strategies Releases Research Brief on Students’ Growing Dependence on Credit Cards

Trellis Strategies released a research brief titled, “The Revolving Door of Credit: College Students’ Credit Card Use and Behavior,” which found that 54 percent of undergraduate respondents used a credit card in 2025, up from 43 percent in 2018. Almost ninety percent of the student cardholders, or 88 percent, reported using credit cards for food, housing, transportation, or other basic needs.

Almost 75 percent of student cardholders said they paid their bills on time, but only 47 percent paid their full balance each month. Among those who did not pay in full, 31 percent struggled to make timely payments, 88 percent worried about covering basis monthly expenses, and 60 percent reported difficulty concentrating on schoolwork because of financial stress. By comparison, 61 percent of student cardholders who paid in full worried about monthly expenses, and 43 percent reported difficulty concentrating on schoolwork because of financial stress.

Trellis Strategies recommended expanding lower-cost institutional payment options, public-benefit screening, basic needs assistance, and ongoing financial counseling.


Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter and Verville, PC
1250 Connecticut Avenue, NW, Eighth Floor
Washington, DC 20036
T: 202-872-6772
F: 202-792-6540

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