WASHINGTON UPDATE, APRIL 2026

By: Sharon Bob

White House Releases FY 2027 Budget Request

On April 3, 2026, the Trump Administration released its FY 2027 budget request reflecting its priorities for the coming year. The Department of Education released the following related materials:

• The FY 2027 Education Budget Summary and Background Information provides program information and detailed budget tables.
• FY 2027 Justifications of Appropriations Estimates to the Congress
• The President’s FY 2027 Budget for the United States Government

The FY 2027 budget proposal requests $75.7 billion for Department of Education funding, which is a 4.1 percent decrease from FY 2026 enacted levels. The following requests for Title IV funding are:

• Pell Grants: The maximum Pell Grant will remain at $7,395. The budget request includes an additional $10.5 billion over FY 2026 to address the projected Pell Grant shortfall.
• Federal Supplemental Educational Opportunity Grants (FSEOG): The budget request eliminates FSEOG funding.
• Federal Work-Study (FWS): The budget request funds FWS at $123 million, which is a reduction of $1.107 billion. The proposal would require employers to pay 90 percent of a student’s hourly wage, instead of the current 25 percent share. The federal share would be reduced to 10 percent, instead of the current 75 percent share.

Democrats Seek Rescission of the Interagency Agreement between the Department of Education and the Treasury Department

On April 2, 2026, Senators Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Ron Wyden (D-OR), Patty Murray (D-WA), and Tammy Baldwin (D-WI) sent Secretary of Education Linda McMahon and Secretary of the Treasury Scott Bessent a letter urging them to rescind their plans to move the administration of federal student loans to the Treasury Department. The lawmakers said: “The Trump Administration’s record of haphazard decision making and utter disregard for the actual issues facing students, families, and student loan borrowers suggest that this IAA [interagency agreement] will be implemented in a way that leaves borrowers with limited options and little to no guidance while increasing the number of borrowers in default and economic distress.”

Senator Banks Asks Secretary McMahon to Prepare an Updated Analysis of 90/10

On March 19, 2026, Senator Jim Banks (R-IN) sent a letter to the Secretary of Education Linda McMahon requesting that she prepare an updated analysis for Congress of the 90/10 Rule. He specifically asked the Department to examine the budgetary and behavioral effects of the 90/10 Rule’s continued enforcement as well as its potential repeal. Senator Banks asked the Secretary to consider, with respect to the 90/10 Rule, the impact on students’ enrollment decisions, the impact on higher education institutions’ tuition, fee, student aid, and other pricing decisions, the impact on students’ employment and earnings outcomes, as well as other measures.

House Education and Workforce Committee Advances Three Bills Focused on Preventing Student Aid Fraud

On March 17, 2026, the House Education and Workforce Committee advanced three bills that focused on preventing fraud in the student aid programs. The House Committee advanced four other bills that focused on K-12 issues and reforming the Truman Scholarship, a merit-based federal grant program awarded to college juniors who were pursuing a public service-related career. Recently, Republican lawmakers have alleged that the Truman Scholarship program disproportionately favors applicants with Democratic beliefs, despite being overseen by a bipartisan governing board.

Congressman Tim Walberg (R-MI), Chair of the House Education Committee, opened the markup by voicing support for all seven bills, and he specifically noted that the Student Aid Fraud Oversight and Accountability Act of 2026, the No Aid for Ghost Students Act of 2026, and the FAFSA Verification Efficiency Act would “crack down on federal student aid fraud.” However, Ranking Member of the House Education Committee Bobby Scott (D-VA) identified several concerns for all three bills, including the additional administrative burden on institutions and privacy concerns.

The Student Aid Fraud Oversight and Accountability Act of 2026 (H.R.7891), introduced by Congressman Glenn Thompson (R-PA), would require the Secretary of Education to prioritize program reviews of institutions that disburse federal student aid without verifying the identity of a student whose FAFSA “presents a reasonable suspicion of identity fraud” as identified by the identity fraud detention system used by the Department of Education. The bill advanced in a 33-0 vote. The No Aid for Ghost Students Act of 2026 (H.R.7892), introduced by Congressman Burgess Owens (R-UT), Chairman of the House Higher Education and Workforce Development Subcommittee, would require the Secretary of Education to use an identity fraud detection system to review each FAFSA to determine whether the FAFSA presents a reasonable suspicion of identity fraud. The bill advanced in a 30-3 vote.

The FAFSA Verification Efficiency Act (H.R.7893), introduced by Chairman Walberg, would grant the Department of Education authority to verify the Social Security number and citizenship status not only of the student applying for federal student aid but also of their parents and/or guardians. The Democrats expressed concern about the bill because it may discourage students and families from applying for federal student aid, citing fears over immigration enforcement. Ranking Member Scott pointed out that the current statute only requires students and parents applying for a Parent PLUS loan to meet citizenship eligibility criteria, and there is no need for a citizenship match to include citizenship status for all contributors. The bill advanced in a 19-13 vote, along party lines.

FSA Updates Disclosure Requirements in the Financial Statements for Related Party Transactions

On April 7, 2026, Federal Student Aid (FSA) updated the disclosure requirements outlined in an October 31, 2024 Electronic Announcement (GENERAL-24-127) regarding the disclosure of related party transactions in financial statements. The updated Electronic Announcement stated that a March 20, 2026 Electronic Announcement (GENERAL-26-18) informed the financial aid community that ED is exercising its authority and will not take enforcement actions under certain specific provisions in 34 C.F.R. § 668.23(d)(1). The updated Electronic Announcement advised the financial aid community that “enforcing the requirement for management to include a note in the financial statements stating that there were no related party transactions or outstanding related party balances during the audited fiscal year, if applicable, will not be a priority until at least July 1, 2027.”

ED Publishes Notice of 2026-2027 Award Year Deadline Dates for the Campus-Based Programs

On April 8, 2026, the Department of Education published a Notice in the Federal Register, announcing the 2026-2027 award year deadline dates for the submission of requests and documents from postsecondary institutions for the campus-based programs.

ED Releases AIM Negotiated Rulemaking Materials

On April 6, 2026, the Department of Education released materials for the Accreditation, Innovation, and Modernization (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 in-person committee is meeting April 13-17, 2026, and May 18-22, 2026.

Trump Administration Announces Victories for Hundreds of Colleges and Universities that Rooted Out DEI Efforts

On April 6, 2026, the Department of Education issued a press release announcing victories for hundreds of colleges and universities that rooted out Diversity, Equity, and Inclusion (DEI) efforts on their campuses and eliminated unfair requirements for admission, employment, scholarship awards, and more. For example, over 300 college and universities have eliminated DEI requirements, closed DEI offices, removed diversity statements from hiring practices, and altered or removed DEI policies. The press release describes a number of examples of actions taken by educational institutions to eliminate the use of DEI in admission practices, employment practices and in awarding scholarships.

ED Rescinds Illegal Title IX Resolution Agreements

On April 6, 2026, the Department of Education’s Officer for Civil Rights (OCR) rescinded provisions of resolution agreements from prior Administrations that had required school districts and colleges to take certain actions, such as for the improper use of preferred pronouns. Assistant Secretary for Civil Rights Kimberly Richey said in a press release: “Today, the Trump Administration is removing the unnecessary and unlawful burdens that prior Administrations imposed on schools in its relentless pursuit of a radical transgender agenda. While previous Administrations launched Title IX investigations based on ‘misgendering,’ the Trump Administration is investigating allegations of girls and women being injured by men on their sports team or feeling violated in their intimate spaces.”

ED Announces Victories in Eliminating Fraud, Waste, and Abuse Across Higher Education Programs

On April 2, 2026, the Department of Education issued a press release announcing its victories in tackling fraud, waste, and abuse across federal student aid programs. The press release pointed out that while the Biden Administration required identity verification for fewer than one percent of students applying for federal student assistance, the Trump Administration has tightened safeguards at the Department of Education to crack down on fraud. In 2025, the Trump Administration prevented more than $1 billion in student aid fraud. The Department implemented identity verification for first-time federal student aid applicants to ensure that every student is a real student.

Other proactive steps taken by the Trump Administration to ensure federal student aid dollars are used responsibly include:

• The Department strengthened real-time data-sharing with the Social Security Administration to prevent identity theft, saving taxpayers more than $30 million.
• The Department resumed automated post-screening of student aid records, preventing overpayments, saving taxpayers more than $10 million.
• The Department partnered with the Department of Homeland Security to ensure illegal aliens no longer receive student aid funds.
• The Department finalized a rule to ensure loan forgiveness is not granted to individuals whose employers engage in specific illegal activities.

ED Announces Webinars on OBBBA Changes

On April 1, 2026, the Department of Education announced in an Electronic Announcement (ANN-26-03) that it will be hosting live webinars for school partners to answer questions and provide updates on topics related to the implementation of the One Big Beautiful Bill Act (OBBBA). Two webinars will be held in April:

• April 10, 2026, 1-2 pm ET: This session will focus on questions about the OBBBA schedule of reductions that will be used when reducing annual loan limits for students not enrolled full-time.
• April 17, 2026, 1-2 pm ET: This session will focus on questions about the legacy loan limit provisions in the OBBBA.

FSA Announces School Notification Process Under the 1994 and 2016 Borrower Defense to Repayment Regulations

On March 30, 2026, Federal Student Aid (FSA) issued an Electronic Announcement (GENERAL-26-22), describing the school notification process under the 1994 and 2016 borrower defense to repayment regulations (34 C.F.R. § 685.206(c) and 34 C.F.R. § 685.222). The 1994 and 2016 regulations require ED to notify institutions about all applications before they are substantively reviewed through the fact-finding process. Institutions have the option to respond to the notices, but there is no negative inference against a school that does not respond. The Electronic Announcement also discusses the separate recoupment process, which includes its own notification and response components, if ED approves applications and seeks to recoup the cost of the discharged loans.

The Electronic Announcement indicated that FSA attempted to batch applications to provide institutions with all pending claims at one time and plans to issue batches of notifications periodically. More than 90 percent of institutions receiving recent notices have fewer than 100 applications, and a small number of institutions received over 500 applications filed by former or current borrowers during this period.

When ED begins notifying institutions of applications that fall under the 2019 regulation, FSA will issue a future announcement with additional details around the notification and adjudication process.

FSA Announces 2026-2027 Final Funding Authorizations for the Campus-Based Aid Programs

On March 30, 2026, Federal Student Aid (FSA) issued an Electronic Announcement (CB-26-05) issued 2026-2027 final funding authorizations for the campus-based aid programs. The final funding is based on the enactment of the Consolidated Appropriations Act, 2026, signed into law by President Trump on February 3, 2026. Individual schools were notified by email, which was sent to the school’s financial aid administrator as provided on the school’s recently submitted FISAP.

FSA Provides Additional Information Regarding the Requirements for Implementing the New R2T4 Provisions

On March 27, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-20) providing additional information regarding the requirements for implementing the new R2T4 provisions included in the final regulations of January 3, 2025, effective July 1, 2026. Institutions have the option to implement two of the R2T4 provisions early, before July 1, 2026, as early as February 3, 2025:

• Allow a confined or incarcerated individual in a term-based setting to return from an approved leave of absence at a different point in their eligible prison education program (PEP) than the point at which the student left off.
• Exempt institutions from performing an R2T4 calculation if (1) a student is treated as never having begun attendance; (2) the institution returns all Title IV, HEA aid disbursed to the student for that payment period or period of enrollment, including Title IV, HEA credit balances provided to the student or parent; (3) the institution refunds all institutional charges to the student for that payment period or period of enrollment; and (4) the institution writes off or cancels any payment period or period of enrollment balance owed by the student to the institution due to the institution’s returning of Title IV, HEA funds to the Department.

Other updates to the final regulations include:

• Codify longstanding guidance that an institution that is required to take attendance must document the date of the institution’s determination that the student withdrew no later than 14 days after the student’s last date of attendance as determined by the institution’s attendance records.
• Mandate that schools use a single method when using scheduled clock hours to calculate the percentage of the payment period or period of enrollment completed for a clock-hour program. For the new regulations, the scheduled hours in a second or subsequent payment period or period of enrollment do not begin to accrue until the student successfully completes the prior period.
• Simplify R2T4 calculations that use modules by considering a module part of the payment period used in the denominator of the R2T4 calculation only when a student begins attendance in the module.

ED Announces Next Steps for Borrowers Enrolled in the SAVE Plan

On March 27, 2026, the Department of Education announced that it began issuing guidance to all borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan, directing them to exit the SAVE Plan and enroll in a “new, legal federal student loan repayment plan.” The announcement said that earlier in March, “a court ended the illegal SAVE Plan by approving a settlement between the Department and the State of Missouri,” and the settlement provides that the Department will not enroll any new borrowers in the SAVE Plan, deny any pending applications, and move all SAVE Plan borrowers into legal repayment plans.

The announcement said that beginning July 1, 2026, federal student loan servicers will begin issuing notices to borrowers, instructing them to exit the SAVE Plan and enroll in a legal repayment plan within 90 days. Borrowers who do not transition to a repayment plan within the 90-day period will be automatically enrolled into either the Standard Repayment Plan or the new Tiered Standard Plan. Beginning March 27, 2026, Federal Student Aid (FSA) will email borrowers to inform them that the SAVE Plan has ended and help them select a new, legal repayment plan “to put them on a path to a sustainable financial future while safeguarding the interests of American taxpayers.”

ED Announces Move out of Lyndon B. Johnson Building

On March 26, 2026, the Department of Education announced that it will be moving out of the Lyndon B. Johnson headquarters building and will relocate to 500 D Street SW, saving taxpayers around $4.8 million annually in operating costs and eliminating wasted space in a building about 70 percent vacant. The move is planned for August 2026.

The press release also said that the Department of Energy will move out of its outdated James V. Forrestal building and assume the lease on the Lyndon B. Johnson building. The Department of Energy’s move to the Department of Education’s headquarters will save taxpayers over $350 million in deferred maintenance costs.

Secretary of Education Linda McMahon said: “Thanks to the hard work of so many, we have made unprecedented progress in reducing the federal education footprint, and now we are pleased to give this building to an agency that will benefit far more from its space than the Department of Education.”

On March 26, 2026, Ranking Member of the House Education and Workforce Committee Bobby Scott (D-VA) said: “This is one of the most overt actions by Secretary McMahon to dismantle the Department of Education (ED) and disregard the law, federal courts, and Congress. The Trump Administration cannot unilaterally dismantle a federal agency. It is not even clear whether the Secretary bothered to adequately notify the remaining ED staff before making this decision public, let alone consult with Congress.”

DOJ Investigates Admissions Practices at Three Medical Schools

Various news reports announced that the Department of Justice investigations have been extended to three medical schools. The three medical schools under investigation are: Stanford University, Ohio State University, and the University of California, San Diego. They have been asked to turn over information by April 24, 2026.

ED Celebrates More than 10 Million FAFSA Forms Completed

On March 26, 2026, the Department of Education released a press release celebrating that more than 10 million 2026-2027 FAFSA forms have been successfully completed by students and parents and processed by Federal Student Aid (FSA). “This represents a 17 percent and 487 percent increase on the number of applications completed at this point in time during the last two cycles, respectively. This milestone follows the earliest FAFSA form launch in history, reversing years of mismanagement and delay by the Biden Administration.”

The press release also announced that ED has updated the data powering the College Scorecard, a digital tool that enables students and families to compare higher education institutions using key outcome measures. “This update includes new earnings data for students four years after graduation, covering the 2017–2018 and 2018–2019 completion cohorts, as well as updated information on graduation rates, cost, and more.”

The earnings indicator is part of the Department’s broader strategy to enhance transparency in higher education and ensure students and their families have access to actionable information about postsecondary outcomes and value. The press release indicated that since launching the earnings indicator in December 2025, approximately 25 percent of students who were presented with the low earnings flag removed the school and updated their FAFSA form with another school.

FSA Distributes FY 2023 Draft Cohort Default Rates and Appeal Timeline

On March 25, 2026, Federal Student Aid (FSA) released an Electronic Announcement (LOANS-26-03) announcing that on March 23, 2026, ED had distributed the FY 2023 draft cohort default rate (CDR) notification packages to all eligible domestic and foreign schools. In this Electronic Announcement, ED provided information about the distribution of the draft rates and specified that the beginning date for appealing the draft rates is March 31, 2026.

Department of Education Removes NACIQI Member After Casting a Dissenting Vote; ED Names New NACIQI Member

According to a March 25, 2026, article in Inside Higher Ed, Joshua Figueira, a Secretary of Education Linda McMahon appointee to the National Advisory Committee on Institutional Quality (NACIQI), was removed nine months after being selected to join NACIQI. The article stated that the removal was made known when Democratic appointee Bob Shireman accused the Department of removing Mr. Figueira for voting against the election of Mr. Greene as Chair. David Barker, Assistant Secretary for Postsecondary Education, was quoted as saying: “The secretary has broad discretion that is consistent with statute and long-standing practice across many federal agencies to ensure that NACIQI is positioned to effectively carry out its advisory responsibilities and support the department’s priorities.”

A March 27, 2026, article in Inside Higher Ed, Secretary McMahon has appointed Siri Terjesen as a new member of NACIQI. She is currently a professor and administrator at Florida Atlantic University.

OCR Issues Letter of Impending Enforcement to San Jose State University on its Failure to Comply with Title IX of the Education Amendments

On March 24, 2026, the Department of Education’s Office for Civil Rights (OCR) issued a letter of impending enforcement action to San Jose State University (SJSU) for its ongoing refusal to comply with Title IX of the Education Amendments of 1972. In January, the Department found that SJSU’s policies allowing males to compete in women’s sports and access female-only facilities deny women equal educational opportunities and benefits. OCR submitted to SJSU a proposed Resolution Agreement with terms that would have resolved its Title IX violations. SJSU refused to sign it or attempt to negotiate its terms and has taken no other action to ensure the safety of its female students and deliver equal educational opportunities.

OCR Opens Two New Investigations into Harvard University for Continued Discrimination Practices

On March 23, 2026, the Department of Education’s Office for Civil Rights (OCR) opened two new investigations into Harvard University amid allegations that it continues to discriminate against students on the basis of race, color, and national origin in violation of Title VI of the Civil Rights Act of 1964. OCR will investigate whether Harvard continues to use illegal race-based preferences in admissions despite the Supreme Court’s definitive ruling in Students for Fair Admissions v. Harvard. OCR will also investigate alleged ongoing antisemitic harassment on Harvard’s campus and the institution’s purported failure to protect Jewish students. OCR will evaluate both complaints and, if continued discrimination is found, take action to hold Harvard accountable for any illegal policies or actions.

OCR also issued a letter of impending enforcement action to Harvard for its continued refusal to provide requested information relating to its admissions process. In May 2025, OCR opened a review to determine if Harvard is still using racial stereotypes and preferences in undergraduate admissions. Despite OCR’s repeated requests for data, Harvard has refused to provide responsive information, which is necessary for OCR to make a compliance determination. The letter said that Harvard has 20 calendar days to comply with OCR’s information requests, or the school will face enforcement actions, including referral to the U.S. Department of Justice.

FSA Updates Lower Earnings Indicator on FAFSA Form

On March 23, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-25-49) announcing that on March 22, 2026, it had updated its data to calculate the lower earnings indicator described in the December 8, 2025 Electronic Announcement. Specifically, the lower earnings indicator now reflects the median earnings of undergraduate completers in the 2017–2018 and 2018–2019 award years who received federal student aid, were earning income, and were not enrolled in an institution of higher education four years after graduation, with earnings measured four years after graduation (in calendar years 2022 and 2023, respectively). Earnings values are adjusted for inflation to January 2026 dollars using the Consumer Price Index for All Urban Consumers (CPI-U). More details about the methodology and a downloadable data file are available on the FSA Data Center at StudentAid.gov/data-center/school/earnings.

Consistent with this update, the College Scorecard has also refreshed its publicly available data. The College Scorecard (collegescorecard.ed.gov) is a digital tool designed to help students and families compare higher education institutions based on data-driven metrics. On March 23, 2026, the College Scorecard updated earnings outcomes for students four years after graduation, including new information for the 2017–2018 and 2018–2019 completion cohorts. In addition, the College Scorecard refreshed data related to graduation rates, cost information, and other institutional metrics. Lastly, the College Scorecard enhanced its website to improve the user experience when searching for and comparing outcomes by field of study.

FSA Announces Enforcement Priorities Related to Audited Financial Statement Requirements

On March 20, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-18) indicating that ED has discretion regarding the use of its enforcement authority and believes that taking enforcement action against institutions for failure to comply with certain provisions related to the new audited financial statement requirements under 34 C.F.R. § 668.23(d)(1) would be inappropriate due to ED’s limited resources and would not advance the national interest or the policy initiatives of the Department. The announcement also noted that institutions have raised practical challenges associated with transitioning their fiscal year to the new standard and implementing other changes to their financial statements.

The 34 C.F.R. § 668.23(d)(1) provisions subject to delayed enforcement are:

• Enforcing the requirement for financial statements submitted to ED for fiscal years beginning on or after July 1, 2024, to match the fiscal year end of the entity’s annual return(s) with the Internal Revenue Service (IRS) will not be a priority until at least fiscal years beginning on or after July 1, 2027.
• Enforcing the requirement for submission of acceptable financial statements for a school’s latest complete fiscal year will not be a priority until at least July 1, 2027.
• Enforcing the requirement that federal student aid functions performed by that entity are covered in the submission of financial statements will not be a priority until at least July 1, 2027.
• Enforcing the requirement that, if there are no related party transactions during the audited fiscal year or related party outstanding balances reported in the financial statements, management must add a note to the financial statements to disclose this fact will not be a priority until at least July 1, 2027.

FSA Announces Availability of 2026 Federal Student Aid Training Conference Session Recordings

On March 20, 2026, Federal Student Aid released an Electronic Announcement (GENERAL-26-19) announcing the availability of the 2026 Federal Student Aid Training Conference session recordings. In addition to the session recordings, presentation materials are also posted on the https://fsapartners.ed.gov/training/federal-student-aid-fsa-training-conference/ website.

ED and Treasury Announce Plans to Send Student Loan Portfolio to Treasury Department

On March 19, 2026, the Department of Education and the Department of the Treasury announced the Federal Student Assistance Partnership to shift some of its federal student aid responsibilities to the Treasury Department. Under the new interagency agreement, the Department of the Treasury will assume operational responsibility for collecting on defaulted Federal student loan debt and provide operational support to ED’s efforts to return borrowers to repayment. In subsequent phases, the Department of the Treasury will work to provide operational support over non-defaulted Federal student loan debt, to the extent practicable and permitted by law.

Secretary of Education Linda McMahon said: “The Federal Student Assistance Partnership marks an intentional and historic step toward breaking up the Federal education bureaucracy and dramatically improving the administration of Federal student aid programs that millions of American students, families, and borrowers rely on to access higher education.”

Secretary of the Treasury Scott Bessent said: “Under President Trump’s leadership we are undertaking the first serious effort to clean up a $1.7 trillion portfolio that has been badly managed for years.”

The “Fact Sheet: Department of Education and Department of the Treasury Federal Student Assistance Partnership” was released to respond to questions regarding the Partnership and how it will work. The Fact Sheet states that all existing federal student aid systems, such as the FAFSA, COD, and NSLDS systems, will remain in place and will continue to be administered by Federal Student Aid (FSA).

Secretary McMahon sent a letter to students, families and borrowers explaining the partnership between ED and Treasury, and explaining the impact the partnership will have on them.

FSA Releases Direct Loan Closeout Information for 2024-2025 Award Year

On March 18, 2026, Federal Student Aid (FSA) released an Electronic Announcement (DL-26-01) reminding institutions of the Direct Loan closeout for the 2024-2025 award year, which has a deadline of July 31, 2026. FSA reminded institutions that all cash management, disbursement reporting, and monthly reconciliation regulatory requirements supersede the closeout deadline.

ED Updates “90/10 – Questions and Answers” Addressing How Proprietary Institutions Must Calculate 90/10

Without an announcement, the Department of Education updated its “90-10 – Questions and Answers,” which reduces compliance burdens that resulted from inconsistent language with the regulations. The changes include a modification to institutional responsibilities to identify sources of Federal educational assistance funds not listed in the in the Secretary’s published notice, the treatment of monthly housing allowance benefits under the Post-9/11 GI Bill, clarification that two different fiscal year-end calculations within the same calendar year does not count as two separate years of failure, clarification of how and when ineligible programs can be counted toward the 10 percent of the 90/10 calculation, as well as removing other language.

ED Publishes an E-App User Reference Guide

The Department of Education published an “Application for Approval to Participate in Federal Student Financial Aid Programs User Reference Guide,” which is located as a resource on the Federal Student Aid Title IV Participation Application webpage. The purpose of the E-App User Reference Guide is to provide detailed instructions for the more complex parts of the E-App since basic instructions are built into the E-App through the help text. There are also instructions on resolving access issues for Partner Connect.

FSA Publishes Quarterly Data Report

On March 13, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-15) announcing the availability of the updated quarterly reports of the federal student aid programs and operations, which are available through the Federal Student Aid Data Center. The update refreshes more than 70 quarterly application, disbursement, and loan portfolio reports to include data through December 31, 2025. Some of the key findings are:

• The outstanding federal student loan portfolio includes 42.8 million recipients with federal student loans totaling $1.7 trillion, which is a 3½ percent dollar increase from December 2024.
• 18.4 million borrowers have at least one loan in a current repayment or delinquency status representing $647 billion in outstanding balances.
• 8.8 million borrowers have at least one loan in forbearance, representing $504 billion in outstanding balances.
• 3.4 million borrowers have at least one loan in deferment, representing $138 billion in outstanding balances.
• 7.7 million borrowers are in default, representing $504 billion in outstanding balances.
• 42 percent of the ED-serviced repayment plan population is in an income-driven repayment plan.

ED Issues Technical Corrections to Final PSLF Rule

On March 12, 2026, the Department of Education issued technical corrections in the Federal Register to Final Regulations published on October 31, 2025, regarding the Public Service Loan Forgiveness (PSLF) program under the Direct Loan Program. The underlying rule updated definitions and eligibility standards for qualifying public service employers. The Notice fixes drafting errors contained in the amendatory instructions of the final rule that unintentionally duplicated definitions and referenced a non-existent paragraph. ED states that the correction does not change the substance of the final rule and therefore does not require notice-and-comment rulemaking. The correction takes effect July 1, 2026.

Federal Judge Rules that ED Must Discharge Student Loans for about 205,000 Borrowers

On March 25, 2026, the Ninth Circuit Court of Appeals denied an emergency request from the Department of Education to delay student loan relief in the ongoing Sweet v. McMahon case. The decision will lead to the automatic cancellation of federal student loans for about 205,000 borrowers. The group representing the borrowers stated that many eligible borrowers should receive a formal notice from the Department by the following week advising them that their federal student loans are eligible to be discharged. Post-class applicants should get student loan discharge notices by April 15, 2026. ED will then have one year to enact student loan forgiveness and other settlement relief for covered borrowers.

As a result of the March 25, 2026 ruling, the Department of Education was reported to have sent out mass student loan discharge notices to thousands of borrowers during the first week in April, notifying them that their federal student loans may be eligible to be cancelled.

District Judge Delays Enforcement of IPEDS Data Collection Deadline for Public Institutions in 17 States

On April 3, 2026, U.S. District Court of Massachusetts Judge F. Dennis Saylor IV issued a preliminary injunction blocking the Department of Education from enforcing its March 18^th deadline for the submission of its Admissions and Consumer Transparency Supplement (ACTS) from public institutions of higher education. ACTS is a recent White House initiative, which requires institutions of higher education to collect and report admissions data for the 2025-2026 academic year along with the data for the previous six years. The data consists of test scores, grade point averages, race, sex, and income ranges of applied, admitted, and enrolled students. [NOTE: The ACTS submission requirements are required of four-year institutions. Otherwise, eligible institutions that admit 100 percent of their applicants and do not award non-need-based aid are exempt.] The Department defended the initiative as a means of expanding transparency and demonstrating whether institutions consider race in admissions. On March 11, 2026, 17 Democratic states attorneys general sued the Department, arguing that the ACTS reporting requirement was rushed and created a burden for institutions.

Various news reports indicated that Judge Saylor based his ruling on concerns with the rushed rollout and lack of adequate engagement with institutions during the rulemaking.

On March 24, 2026, Judge Saylor heard arguments from the plaintiffs and defendants, and extended a temporary restraining order to April 6, 2026. However, according to an article on April 6, 2026, article in Inside Higher Ed, the extension to April 6, 2026, only applied to public institutions in the 17 states represented in the lawsuit. It should also be noted that the Association for Institutional Research (AIR) confirmed that an institution could request an extension to submit their ACTS data up through April 8, 2026, if it meets certain conditions.

Christine Keller, Executive Director and CEO of AIR told Inside Higher Ed that “With institutions now working under different deadlines across states and sectors, the situation remains uncertain and evolving. Our guidance is for institutional research offices to continue their work to prepare and validate the data rather than pause and wait for further court action, while continuing to monitor guidance from the Department and consult with institutional leadership and legal counsel.”

HLC Endorses First Microcredential Providers

In March 2026, Higher Learning Commission (HLC) released a press release announcing its endorsement of four organizations that provide short-term credential programs, such as certificates, microcredentials, badges or other alternative credentials. HLC President Barbara Gellman-Danley said: “These endorsed providers meet high-quality standards in offering short-term credentials of value. The intent is to increase pathways for learners to gain the qualifications they need to advance careers and success.” The four organizations that have been granted endorsement are:

• Corporate Finance Institute
• Kaplan North America LLC
• Sophia Learning LLC
• Voltage Control LLC

HLC is accepting applications for endorsement for the second cohort of providers through April 24, 2026.

Under Secretary Kent Warns Accreditors Over DEI

In an article of March 18, 2026, in Inside Higher Ed, it was reported that Under Secretary of Education Nicholas Kent had sent letters to two accreditors, the Middle States Commission on Higher Education and the Commission on Accreditation in Physical Therapy Education, alleging that diversity, equity, and inclusion (DEI) practices in their standards conflict with federal law. The article reported that both accrediting agencies have suspended enforcement of their DEI standards, but neither has rescinded the standards that violate Title VI of the Civil Rights Act of 1964. The article pointed out that neither accrediting agency was noncompliant with accreditation-recognition criteria.

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
February 15, 2026

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