WASHINGTON UPDATE, SEPTEMBER 2026

By: Sharon H. Bob, Ph.D.

Bipartisan House Bill Introduced to Prevent Outsourcing of Four Department of Education Offices

On September 3, 2026, Ranking Member of the House Education and Workforce Committee Bobby Scott (D-VA), and Congressmen John W. Mannion (D-NY) and Brian Fitzpatrick (D-PA) introduced the House Companion bill to S. 5046, H.R. 10232, a bipartisan bill led by Senators Tim Kaine (D-VA), Susan Collins (R-ME), and Lisa Murkowski (R-AK), that would prevent the transfer of four Department of Education offices to other agencies. The Senate bill cleared the Senate Health, Education, Labor, and Pensions (HELP) Committee by a vote of 13 to 9, in July 2026.

The four protected offices are the Office of Special Education and Rehabilitation Services, the Office of Postsecondary Education, the Office of Elementary and Secondary Education, and the Office of Indian Education. In a joint statement issued September 3, 2026, Congressmen Mannion, Scott, and Fitzgerald said their bill seeks to prevent the four offices’ transfers to agencies that “lack the staff, experience, and expertise needed to administer them.”

It is interesting to note that Federal Student Aid and the Office of Civil Rights are not included in the bill. This means that the $1.7 trillion federal loan portfolio will be handed off to the Department of the Treasury as would the eventual move of FAFSA processing.

Warren, Merkley, Booker, and Van Hollen Question Department on Use of $1 Billion Student Loan Fund

On September 3, 2026, Senator Elizabeth Warren (D-MA) released a press release, on behalf of Senators Jeff Merkley (D-OR), Cory Booker (D-NJ), and Chris Van Hollen (D-MD), announcing that they had sent a letter to Secretary of Education Linda McMahon on September 2, 2026, questioning her about the use of the $1 billion student loan administration fund allocated in the One Big Beautiful Bill Act (OBBBA). The letter, included in the press release, said that while OBBBA allocated $1 billion to cover “administrative costs” of the federal student loan program, the law created no “accountability, oversight, or transparency measures regarding how the money is spent.” The Senators wrote that while the Department disclosed spending hundreds of millions of dollars from the fund, the Department has displayed a lack of transparency about what the money has been spent on. They want to know how much funding supported loan servicers, the Education-Treasury interagency agreements, new Federal Student Aid personnel, StudentAid.gov, and outreach to borrowers who are in or at risk of default.

President Signs FY 2027 CR into Law

On September 2, 2026, President Donald Trump signed into law the Continuing Appropriations and Extension Act, 2027 (CR) (H.R. 6500). The CR funds the federal government at current FY 2026 levels through December 11, 2026, avoiding a potential government shutdown when current funding expires on September 30, 2026.

On September 1, 2026, the House of Representatives voted in favor of the Senate-passed CR, by a vote of 370 to 48. Previously, the Senate had passed the FY 2027 funding measure on August 8, 2026, by a vote of 90 to 6.

16 Congressional Democrats Urge ED to Issue Additional Guidance on New Proration Requirement

On August 20, 2026, a group of 16 Congressional Democrats, led by Congresswoman Alma Adams (D-NC), sent a letter to the Secretary of Education Linda McMahon urging her to issue additional formal guidance with specific scenarios for institutions regarding the new requirement to prorate loans for students enrolled on a less-than-full-time status, known as the schedule of reductions. The letter outlined the concerns and questions raised by the financial aid community regarding the schedule of reductions. While the letter recognized that ED recently released a FAQ document regarding loan proration, there are many unanswered questions, and ED has conducted multiple office hour sessions to answer questions from financial aid administrators. However, the Department has noted that answers provided during office hours are not considered official Department of Education guidance. The letter stressed the importance of having timely written guidance to implement the regulations resulting from the One Big Beautiful Bill Act (OBBBA) to ensure compliance. The letter reads: “Institutions should not be expected to make compliance decisions affecting students’ federal aid based on informal conversations that may later be revised or contradicted.”

GAO Releases Report on Student Loan Mismanagement in Response to Request of then-Ranking Member Cassidy and then-Chairwoman Foxx

On August 6, 2026, the Government Accountability Office (GAO) released a report, titled, “Federal Student Loans: Education Could Better Coordinate with Servicers When Making Program Changes,” (GAO-26-107780), in response to a request from then-Ranking Member Cassidy and then-Chairwoman Foxx, which details how the Biden-Harris Department of Education left loan servicers in chaos. GAO was asked to review the Department’s instruction to loan servicers because as of September 2025, the Department held over $1.6 trillion in outstanding federal student loans and significant changes were made during the Biden-Harris Administration to the loan programs, which added new complexities to loan servicers’ responsibilities.

GAO found that loan servicers faced challenges implementing program changes due to a lack of upfront instruction from the Department of Education. All four loan servicers surveyed raised concerns about the number of clarifying questions they needed answered to implement some requested changes. GAO found that the lack of clear, up-front instruction sometimes resulted in extensive back-and-forth between the Department and the loan servicers.

GAO recommended that the Department develop and implement criteria for determining when to conduct early coordination with loan servicers. The Department disagreed with GAO’s recommendation, stating that such criteria would hinder its ability to implement changes in a timely and efficient manner while being responsive to administration priorities. In December 2025, the Department also told GAO that early coordination with servicers has also significantly improved.

“Instead of fulfilling their duties as Congress intended, the Biden-Harris administration dramatically increased the scope of its student loan program and misled borrowers into thinking their debt would be cancelled,” said Dr. Cassidy. “Thanks to the Working Families Tax Cuts, Republicans are helping students get out of the cycle of debt Democrats put them in. We must continue to work with the Trump administration to strengthen accountability to our loan program so students have the best chance to succeed.”

“The Biden-Harris administration prioritized unlawful student loan bailouts over the basic responsibility of administering the federal student loan program,” said Chairman Walberg. “By diverting critical staff and resources, Biden-Harris threw borrowers and servicers into total chaos. Students and taxpayers deserve a system that is transparent, accountable, and functions—not one plagued by mismanagement and confusion. We applaud the Trump administration’s efforts to restore coordination with servicers and restore accountability to the federal student loan program.”

Senate HELP Committee Passes Several Higher Education Bills

On July 30, 2026, the Senate Health, Education, Labor and Pensions (HELP) Committee passed several bills, including several related to higher education. The College Transparency Act (S. 2511) was reintroduced by Senators Bill Cassidy (R-LA), Chair of the HELP Committee, and Elizabeth Warren (D-MA), and would create a postsecondary student data system that would evaluate student enrollment patterns, progression, completion, and postsecondary outcomes, along with higher education costs and financial aid for educational institutions. This data system would provide an increased transparency of college costs and would help students and families make more informed decisions about a postsecondary education. The Committee voted 21-1 in favor of the bill.

The HELP Committee also considered S. 5046, a bill that would prohibit the transfer of certain offices, including the Office of Postsecondary Education (OPE), from the Department of Education to other federal agencies. The bill passed by a vote of 13-9. An amendment to S. 5046, offered by Senator Patty Murray (D-WA), which would prohibit ED from transferring Federal Student Aid (FSA) to other agencies, was rejected.

S. 4097, the State-Based Loan Awareness Act, advanced by a vote of 20-2, would exclude certain state-based education loan programs from preferred lender list requirements.

Congressman Lawler Introduces The Professional Student Degree Act

On December 15, 2025, Congressman Michael Lawlor (R-NY) introduced The Professional Student Degree Act (H.R. 6718), which would label 24 degree programs as professional degree programs, making more students eligible for the higher loan caps. H.R. 6718 was a response to changes made by the One Big Beautiful Bill Act (OBBBA), and the Department of Education’s subsequent implementation of new federal student loan limits in a Final Rule published in the Federal Register, on May 1, 2026. Congressman Lawlor’s list not only includes health care programs for nursing, physician assistant/associate, physical therapy, and occupational therapy, but also includes social work, education, accounting, and architecture programs. The bill currently has 26 co-sponsors, 10 Democrats and 16 Republicans, which could give it a better chance of advancing in Congress.

On June 29, 2026, and updated on July 10, 2026, the Department of Education published an Electronic Announcement (GENERAL-26-42), identifying the list of Classification of Instructional Programs (CIP) Codes that are designated as professional degree programs for reporting Title IV loan originations and disbursements to the Common Origination and Disbursement (COD) System. Based on the Department’s understanding of the June 24, 2026, U.S. District Court for the District of Columbia’s preliminarily stay of part of the Department’s professional degree definition contained in the Final Rule, the Department identified additional programs that could be considered professional degree programs for the period of the stay. The Electronic Announcement also identified programs not treated as programs granting professional degrees as a result of the Court order.

FSA Announces Annual Notice on Interest Rates for Fixed Rate Federal Student Loans

On September 10, 2026, Federal Student Aid (FSA) issued a Notice announcing the interest rates for fixed-rate Federal student loans made under the William D. Ford Federal Direct Loan Program. The Federal Register Notice, included in the FSA Notice, publishes the fixed-rate interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2026, and before July 1, 2027:

Loan Type	Borrower	Fixed Interest Rate
Direct Subsidized/Direct Unsubsidized Loans	Undergraduates	6.52%
Direct Unsubsidized Loans	Graduate and professional students	8.07%
Direct PLUS Loans	Parents of dependent undergraduates	9.07%
	Graduate and professional students	9.07%

 

FSA Announces Partner Connect Training on Borrower Defense to Repayment for Administrators

On September 10, 2026, Federal Student Aid (FSA) issued a Dear Colleague Letter (ANN-26-23) announcing a webinar and additional training resources from FSA to assist FSA Partner Connect administrators in understanding the new borrower defense to repayment functionality, which will be available October 2026. Starting October 2026, institutions will use FSA Partner Connect to respond to notifications from FSA regarding borrower defense to repayment applications filed by their former or current student borrowers. Schools will use the new Borrower Defense portal, available from the FSA Partner Connect home page, to review cases, understand applicable regulation years, and upload evidence. FSA Partner Connect will be updated to offer:

• A new summary page for borrower defense cases;
• Robust search and filter tools;
• Improved functionality to review case details; and
• A modernized approach to manage evidence.

A webinar will be offered on September 23, 2026, 1:00 to 2:30 PM Eastern Time and will introduce the new borrower defense to repayment functionality available in FSA Partner Connect.

FSA Announces Availability of Online Training Programs for OBBBA Implementation

On September 9, 2026, Federal Student Aid (FSA) issued a Dear Colleague Letter (ANN-26-22) announcing the availability of a new online, self-paced course about Workforce Pell, the first of several new training programs impacted by the One Big Beautiful Bill Act (OBBBA). The first course provides an overview of Workforce Pell and the expanded opportunity for eligible students to use Federal Pell Grants for approved short-term workforce training programs.

OPE Announces Publication of 2027-2028 College Financing Plan

On September 8, 2026, the Office of Postsecondary Education issued an Electronic Announcement (GENERAL-26-54) announcing the publication of the 2027-2028 College Financing Plan. The College Financing Plan is a consumer tool, which was developed as an option for institutions to use to notify students about their financial aid packages. It is also intended for prospective students to receive information about college costs and financial aid so that they can compare institutions and make informed decisions. The forms, as well as the HTML specifications file, a technical guide, and a set of Frequently Asked Questions, can be found on the CFP webpage.

Institutions that have agreed to comply with the Principles of Excellence in Executive Order 13607 (EO 13607) are expected to use the College Financing Plan to provide the required personalized and standardized form with financial aid information for undergraduate and graduate service members, veterans, military spouses, and other military family members covered by EO 13607. The College Financing Plan should be provided to prospective students who are eligible to receive Federal military and veterans’ educational benefits. Prospective students should receive the College Financing Plan prior to enrollment.

Department of Education Releases 2027-2028 FAFSA Prototype and Preview Presentation Ahead of October 1 Launch

On September 3, 2026, Federal Student Aid (FSA) released the interactive prototype (APP-26-13) and preview presentation (APP-26-12) for the online 2027-2028 FAFSA form, giving financial aid administrators, counselors, and mentors a partial preview of the FAFSA before its statutory October 1, 2026, launch. The prototype allows users to navigate most pages of the online form through common applicant scenarios.

FSA Announces Two Webinars to Support Institutions with their Default Prevention Strategies

On September 2, 2026, Federal Student Aid (FSA) announced (ANN-26-21) that it will host two webinars as part of a new default prevention initiative by FSA to support institutions of higher education in preparation for the upcoming release of official cohort default rates. On September 29, 2026, FSA is offering a webinar on NSLDS Reporting Tools, designed to help with default management and prevention. On October 13, 2026, FSA is offering a webinar that highlights the importance of managing and preventing loan defaults for campus leaders, showing how they affect daily operations and eligibility for federal student aid. It also offers practical resources to improve borrower communication and support students as they repay their loans.

FSA Invites Higher Education Stakeholders to Comment on Draft Strategic Plan Goals and Objectives

On August 24, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-51), which includes a link to draft strategic plan goals and objectives that will guide FSA’s priorities and performance over the next five years. These goals and objectives outline FSA’s roadmap for continuing to modernize the federal student assistance programs and strengthen service to students, parents, borrowers, institutions of higher education, and other financial partners. The draft plan includes the following goals and objectives:

1. Ensure aid delivery for every eligible student;
2. Increase student loan repayment;
3. Modernize technology infrastructure; and
4. Empower employees and promote enterprise business acumen.

FSA is inviting feedback about its strategic plan from financial aid stakeholders. The deadline for providing comments is 11:59 p.m., September 23, 2026.

Department Releases NPRM Based on the Consensus Language Developed Through the AIM Negotiated Rulemaking Committee

On August 20, 2026, the Department of Education published a Notice of Proposed Rulemaking (NPRM) in the Federal Register based on the consensus language developed through the Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking committee. According to the August 19, 2026 press release “[t]he proposed framework would simplify the Secretary’s process of recognizing emerging and existing accreditors; promote a better return on investment for students; safeguard against undue influence from private trade associations on accreditors; eliminate standards or policies that discriminate on the basis of immutable characteristics; and promote academic freedom, intellectual diversity, and research integrity.”

Under Secretary Nicholas Kent said: “Instead of ensuring institutions offer high-quality educational programs that justify the time and cost of a college education, the antiquated accreditation system has contributed to inflated tuition, administrative bloat, and ideology-driven mandates on college campuses. The Department’s proposed changes to our higher education quality assurance system will improve college affordability, reconnect education to workforce needs, strengthen accountability, and restore confidence in our accreditation system.”

There are 30 days for public comment with a deadline of September 21, 2026.

Some of the key provisions of the NPRM are:

• The proposed rule includes several provisions that will increase competition among accrediting agencies and expand institutional choice:
  • The rule would eliminate geographic restrictions on accrediting agencies and would fully eliminate the distinction between “regional” and “national” accreditors. (34 C.F.R. § 602.11).
  • The Secretary cannot delay, condition, or otherwise adversely affect an institution’s participation in Title IV, HEA programs if the institution switches accreditors as long as the institutions can demonstrate “reasonable cause.” (34 C.F.R. § 602.11).
  • The current requirement that new accrediting agencies must have operated for two years before seeking recognition would be removed. (34 C.F.R. § 602.12).
  • The rule would clarify that the Secretary’s recognition of an accrediting agency does not confer immunity from Federal or State antitrust laws; does not authorize collective action amongst accreditors, institutions, or programs; and does not create a property interest or entitlement to continued recognition by the Secretary.
  • The rule would streamline the recognition process, including reducing the timeline from over 720 days to about 240 days. (34 C.F.R. § 602.30-602.37).
• The proposed rule would focus on student outcomes (34 C.F.R. §§ 602.16-17):
  • The rule would require accreditation standards to address student achievement at both institutional and program levels.
  • Student success would be evaluated by assessing state licensing or certification examination results; program retention, completion, or graduation rates; post-completion or graduation outcomes; scores on relevant standardized tests; and educational and economic returns aligned to the program’s credential level, length, and occupational context relative to the total cost of attendance.
  • The rule would require evaluating whether an institution maintains a sufficient number of qualified faculty/instructors who are regularly evaluated on the performance of their instructional, research, or service responsibilities; and whether staffing models allow reasonable adjustments in response to shifting enrollment patterns, program sustainability concerns, or financial pressures.
  • As related to facilities/equipment/supplies and student support services, agencies would be required to conduct a cost/benefit analysis to review institutional budgets, resource utilization and allocation, facilities, and staffing.
  • Agencies would be required to reduce barriers to innovative delivery models, improved access, and accelerated completion.
• The proposed rule addresses the Department’s academic freedom and anti-discrimination requirements (34 C.F.R. §§ 602.17-602.18):
  • Agencies would be required to evaluate academic freedom protections, including civil and First Amendment rights.
  • Agencies would need to prioritize intellectual diversity and the free exchange of ideas among faculty.
  • Agencies would need to assess whether institutions measure and address viewpoint diversity among students and faculty.
  • Agencies would not be permitted to maintain standards that encourage or require violations of Federal and State law, including unlawful preferences based on race, color, national origin, or sex.
  • Agencies cannot require institutions to violate Title VI or Title IX.
  • Agencies would be expected to review institutional policies governing research misconduct.
• The proposed rule strengthens requirements for accrediting agencies to be “separate and independent” from related trade and membership organizations (34 C.F.R. §§ 602.14-15):
  • Decision-making members may not be selected or employed by an affiliated trade organization.
  • Agency dues and budgets would need to be separate from those of related organizations.
  • The rule would eliminate regulatory provisions that previously permitted shared personnel, services, equipment, facilities, or office space.
  • An agency would need to maintain physically separate office space by July 1, 2028.
  • Detailed conflict-of-interest controls would be required.
• The proposed rule would establish significant protections for students with transfer credits (34 C.F.R. §§ 602.24 and 668.43):
  • The rule would not permit institutions to deny transfer credit solely because of the sending institution or its recognized accrediting agency.
  • The rule would require that comparable undergraduate coursework from a recognized institution must generally receive credit unless the receiving institution provides a written academic basis for denial.
  • The rule would require institutions to publicly disclose general policies for specific academic standards, time limits and curricular requirements for acceptance of credits before enrollment, registration, or any non-refundable financial commitment.
• The proposed rule would establish enhanced teach-out procedures (34 C.F.R. § 602.24):
  • The rule would require institutions to submit teach-out plans within 30 days of specified triggering events, including heightened cash monitoring, enforcement actions, withdrawal of accreditation, planned closure, or loss of state authorization.
  • If the institution is not able to obtain a teach-out agreement, the institution would need to provide documentation to the accrediting agency and the state detailing why a teach-out agreement cannot be secured.
  • The rule would require institutions to publish information about teach-out procedures, transcript availability, loan discharge, and reimbursement options.

Department Provides Notice of NACIQI Meeting

On August 21, 2026, the Department of Education published a Notice in the Federal Register, setting forth the agenda, time, and instructions to access or participate in the September 23-24, 2026, meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI). At the meeting, NACIQI will be reviewing applications for renewal of recognition, which include the Accrediting Bureau of Health Education Schools (ABHES) and the Southern Association of Colleges and Schools, Commission on Colleges (SACSCOC).

FSA Announces the Availability of PDF Files for the 2025-2026 FSAH

On August 20, 2026, Federal Student Aid (FSA) announced (DCL ANN-26-18) the availability of PDF files for the 2025-2026 Federal Student Aid Handbook (FSAH). Schools can either download the entire handbook or individual volumes.

Department Approves Second Workforce Pell Grant Program in Indiana

On August 19, 2026, the Department of Education announced that it has approved the second Workforce Pell Grant program in Indiana. Eligible students can now enroll in the Clinical Medical Assistance program, an 8-week program, at Ivy Tech Community College and receive federal Pell Grant funds.

Secretary of Education Linda McMahon said: “President Trump’s Workforce Pell Grant program unlocks opportunity for students across the nation, jumpstarting careers and opening pathways to the American dream. At a moment when our workforce needs more practical routes into good-paying jobs, Ivy Tech Community College’s Workforce Pell Grant program is making history and will create a powerful career pipeline into essential healthcare professions.”

ED Issues Announcement Regarding Documentation of Public Status for Institutions of Higher Education

On August 17, 2026, the Department of Education issued an Electronic Announcement (GENERAL-26-50) to remind schools of the financial responsibility regulatory requirements for all public institutions of higher education. ED expects that all public institutions meet the regulatory standard for documentation of public status and maintain documentation on file, which may be requested by the Department as part of program reviews, recertification of applications, or other processes. Public institutions no longer have to submit documentation via eZ-Audit. The Electronic Announcement outlines the specific documentation needed for public institutions.

FSA Releases Guidance on FVT/GE Data Reporting and Updated Spreadsheet

On August 11, 2026, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-26-49), providing guidance on Financial Value Transparency and Gainful Employment (FVT/GE) data reporting requirements for both the prior and current reporting cycles, including the option to early implement the new Student Tuition and Transparency System (STATS) and Earnings Accountability data collection. The announcement also provides guidance about potential consequences for noncompliance, and ED’s intention to publish FVT/GE and STATS data in 2027.

Initially, the Department disclosed that more than 1,900 institutions have not reported or under-reported FVT/GE data from the 2024 and 2025 reporting cycles. These data sets were due September 30, 2025, and October 1, 2025, respectively. Institutions that have not yet reported all required FVT/GE data for the 2024 and 2025 reporting cycles are now considered delinquent and will have until January 15, 2027, to submit any unreported or under-reported FVT/GE data from the 2024 and 2025 reporting cycles. To assist institutions, FSA attached a spreadsheet to the announcement that shows which award years and specific FVT/GE data files each institution previously submitted and which files are missing.

Since the initial Electronic Announcement, more than 130 colleges have responded to its warning and provided their overdue data on student outcomes. There are now more than 1,790 of the roughly 4,600 educational institutions that still have missing or have unreported some or all of the required data. On August 28, 2026, FSA released an updated spreadsheet to include the latest FVT/GE data reported by institutions for the 2024 and 2025 cycles. FSA stated that it will periodically update and share the list through January 15, 2027.

https://fsapartners.ed.gov/sites/default/files/2026-08/FVTGEDataReportingFinalUpdatedAug2826.xlsx.

Institutions were reminded that they must submit FVT/GE data for the 2026 reporting cycle by October 1, 2026. The announcement reminded institutions that they have the option not to report certain data elements in the FVT/GE collection. According to the final regulations of July 1, 2026, the Department will consider institutions that exclude one or more of the optional fields for the 2026 reporting cycle as an indication of their early implementation of the new reporting requirements in the STATS and Earnings Accountability rule. Early implementation of the reporting requirements in the STATS and Earnings Accountability rule has no effect on any other regulatory requirements. “It does not impact whether an institution is subject to the new earnings premium measure on and after July 1, 2027, nor does it impact the consequences of failing that measure.”

The Department is encouraging institutions to submit their FVT/GE data at least one week before the deadlines so that institutions have sufficient time to correct errors flagged in an institution’s submission. Institutions that fail to submit data for the 2024, 2025, or 2026 reporting cycles may receive fines, sanctions, or other actions ED deems appropriate for non-compliant institutions.

Finally, the announcement said that ED intends to publish data and statistics derived from the FVT/GE and STATS data in 2027. ED will publish draft data and statistics and allow institutions to review the information prior to those data being finalized. Later in the year, ED will publish final data and statistics derived from the FVT/GE and STATS data. ED will continue publishing draft and final data on an annual basis. Beginning in 2028, the annual data will be based solely on the STATS collection.

FSA Releases Frequently Asked Questions on Reducing Annual Loan Limits for Less-than-Full-Time Enrollment Using the Schedule of Reductions

Federal Student Aid (FSA) released “Frequently Asked Questions (FAQs) for Reducing Annual Loan Limits for Less-than-Full-Time Enrollment Using the Schedule of Reductions” as of July 2026. This document states that it is intended to provide clarity regarding the new regulations that were published on May 1, 2026, and the interaction with existing requirements under the law or agency policies. The guidance’s contents “do not have the force and effect of law and are not meant to bind the public.”

The Schedule of Reductions (SOR) is a regulatory formula that proportionately reduces the annual amount a student may borrow when enrolled less than full-time during an academic year. The 24-question FAQs address many of the questions regarding the application of the final regulations. For instance, the FAQs address the steps that must be taken to determine that the borrower’s reduced loan eligibility when they enroll less than full-time in an academic year; what institutions should do if a borrower’s enrollment status changes after it made a loan disbursement; and how an institution can avoid “double-prorating” a loan when both existing loan limit proration rules and the new rules for reducing annual loan limits for less-than-full-time students apply.

IRS Issues NPRM that would Deny Tax-Exempt Status to Private Schools that Discriminate

On September 4, 2026, the Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking (NPRM) in the Federal Register that would deny Section 501(c)(3) status to private schools that discriminate based on race, color, or national or ethnic origin in the administration of its educational, admissions, scholarship, athletic, or other policies. The NPRM covers private K-12 schools, colleges, universities, professional schools, and trade schools, potentially affecting as many as 18,000 educational institutions. Comments are due November 3, 2026. IRS expects to issue final regulations before May 31, 2027, with the rules applying to taxable years beginning after that date.

DHS Restricts How Long International Students Can Stay in U.S. and Curtails Internships for Foreign Students

According to an article in the August 28, 2026, The Wall Street Journal, on August 24, 2026, the Department of Homeland Security (DHS) issued a memo to colleges and universities outlining the policy shift referenced in the July 17, 2026, Final Rule. Under the Final Rule, the memo states that international students may only complete internships if employers have a partnership with their college and the practical job training is required for all students enrolled in the program of study. The memo warned that institutions may lose certification to enroll foreign students if they fail to comply.

On July 17, 2026, DHS published a Final Rule in the Federal Register, amending its regulations to change the admission period in the F, J. and I classifications from duration of status to an admission for a fixed period. The updated rule eliminates “duration of status” on student visas, which allowed foreigners to stay in the United States as long as they continued to be full-time students, and replaces it with fixed end dates. The effective date is September 15, 2026.

• Student visas will now last for four years or for the duration of the degree program, whichever is shorter, whether they are undergraduates, master’s students, or doctoral students.
• Students who would like to remain in the United States any longer will require specific approval from DHS.
• Both new student visa holders and existing ones will be subject to a strict timeframe. Students, who are already in the United States and who were not initially given a set end date, will have to leave the country 30 days after their program’s completion. Thirty days is the new timeframe for F-1 nonimmigrants to prepare to depart from the United States after completion of a course of study or an authorized period of post-completion practical training. Previously, F-1 nonimmigrants had 60 days to prepare to depart from the United States.
• If current student visa holders leave the United States any time after September, they will be readmitted with a defined end date.

Pages 44977-44978 of the Preamble of the Final Rule state: “Replacing admissions for D/S with admissions for a fixed time period of authorized stay is consistent with most other nonimmigrant categories. It will provide additional protections and oversight of these nonimmigrant categories and will allow DHS to better evaluate whether these nonimmigrants are maintaining status while temporarily in the United States.”

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.

Unions Challenge Department of Education’s Definition of “Professional Degree”

On Augusts 12, 2026, the American Federation of Labor and Congress of Industrial Organization (AFL-CIO), the American Federation of State, County and Municipal Employees (AFSCME), the American Federation of Teachers (AFT), and National Nurses United (NNU) filed a lawsuit challenging the Department of Education’s Reimagining and Improving Student Education (RISE) rule that defines “professional student.” American Federation of Labor and Congress of Industrial Organizations, et. al. v. McMahon, No. 1:26-cv-02833, brought in the U.S. District Court for the District of Columbia, argues that the Department unlawfully narrowed the definition of “professional student” and improperly restricted transition protections for existing borrowers. The unions seek to vacate the provisions they are challenging and postpone their implementation.

Previously, in another lawsuit over the rule’s definition of a professional degree, which was cited in the August 12^th lawsuit, the Federal District Court for the District of Columbia granted a preliminary injunction on June 24, 2026, in a lawsuit brought by professional associations representing nurse practitioners and physician associates. The Department of Education responded by providing interim guidance, which expanded the list of qualifying degrees; however, the expanded list applies only as long as the Court’s stay remains in place.

The August 12, 2026, lawsuit identifies two problems with relying on interim guidance. First, the Department’s expanded list leaves out entire categories of programs the unions represent, and second, the Department never explained what criteria it used to decide which programs to add.

The plaintiffs ask the Court to declare that the final rule provisions exceeded the Department’s authority; to vacate the named provisions from the rule; prohibit the Department from implementing or enforcing the provisions of the rule; and to postpone the effective date of the rule.

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.

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Sharon H. Bob, Ph.D.
Higher Education Specialist
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