Cases & Developments

The American Council on Education (ACE) published an issue brief outlining recent Pentagon actions that affect military education partnerships with colleges and universities and examining the potential implications for institutions and service members. The issue brief details the three programs affected so far: (1) selected senior service college fellowships; (2) some graduate-level military education placements; and (3) certain certificate and fellowship programs.

The Department of Education (ED) and the Department of the Treasury announced that they have entered into a new joint agency agreement that will shift responsibilities for defaulted student loans from ED’s Federal Student Aid (FSA) office to the Treasury and outlined plans to outsource additional FSA responsibilities in future phases. According to the press release, the Federal Student Assistance Partnership will “enhance the administration of Federal student aid programs . . . and facilitate the return of defaulted borrowers to repayment.” Treasury will now assume operational responsibility for collecting defaulted federal student loan debt and provide operational support to ED’s efforts to return borrowers to repayment. A fact sheet on the new interagency partnership can be found here. 

The American Council on Education (ACE) published a summary of the Department of Education’s March 9, 2026 proposed regulations implementing provisions of the One Big Beautiful Bill (OBBB) Act related to the new Workforce Pell program and updating regulations governing the administration of the Pell Grant program.  

The Department of Education announced that it has issued a Notice of Proposed Rulemaking (NPRM) to implement the new Workforce Pell Grant program included in the One Big Beautiful Bill Act (OBBBA). Among its provisions, the NPRM would (1) allow students to receive Pell Grants for eligible workforce programs that consist of 150-599 hours of instruction and take 8-14 weeks to complete; (2) set additional eligibility requirements for the approval of a workforce program, including approval by a Governor; and (3) establish certain accountability benchmarks such as job placement rates and a value-added earnings measure. Comments are due by April 8, 2026. 

The Department of Education announced that it has issued a Notice of Proposed Rulemaking (NPRM) to implement the new Workforce Pell Grant program included in the One Big Beautiful Bill Act (OBBBA). Among its provisions, the NPRM would (1) allow students to receive Pell Grants for eligible workforce programs that consist of 150-599 hours of instruction and take 8-14 weeks to complete; (2) set additional eligibility requirements for the approval of a workforce program, including approval by a Governor; and (3) establish certain accountability benchmarks such as job placement rates and a value-added earnings measure. Comments are due by April 8, 2026. 

The American Council on Education (ACE) and 40 other higher education associations submitted comments to the Department of Education’s Notice of Proposed Rulemaking (NPRM) stemming from changes made in the One Big Beautiful Bill Act (OBBBA). The associations’ comments outline the changes the proposed regulations would make in areas such as federal student loan limits for graduate and professional students and the impact these changes would have on students and campuses. In addition to the associations’ letter, a bipartisan group of more than 150 lawmakers sent comments to the Department critiquing the proposed changes. 

Memorandum and Order Dismissing Case as Moot. Plaintiffs, the State of Missouri and several other states, sued the Secretary of Education and several federal officials alleging that the Biden administration exceeded its statutory authority in 2024 by implementing the Savings on a Valuable Education (SAVE) plan, which would have allowed for lower payments and forgiveness after 10 years of repayment, as opposed to the 20 or 25 years required under other income contingent repayment (ICR) plans. The district court granted a preliminary injunction with respect to part of the rule and, in February 2025, the Eighth Circuit affirmed and directed the district court to broaden the injunction to block the entire rule. Since the change in administration, the federal government has ceased defending the SAVE plan and Congress subsequently enacted legislation ending it. Because there is no longer a live case or controversy, the district court dismissed the case without prejudice as moot.