Cases & Developments

The U.S. Department of Education (the Department) announced a Request for Information (RFI) to help develop the Common Manual for borrowers through the Office of Consumer Education and Ombudsman. The centralized Common Manual will create federal guidelines and guardrails for vendor operations, ensuring consistent borrower communications, customer service, and enforcement actions. The Office of Consumer Education and Ombudsman will be charged with (i) providing clear, accessible guidance on student loans and repayment; (ii) developing tools and resources to help borrowers navigate the financial aid process; (iii) ensuring that FSA’s actions are rooted in data about borrower behavior; and (iv) maintaining the dispute function integrated with broader education efforts. Comments must be received on or before October 8, 2025. 

The American Council on Education (ACE) sent a letter to the Department of Education (the Department) offering comments on the Department’s pending implementation of the One Big Beautiful Bill (OBBB) Act. The letter urges the Department to work with Congress to delay the implementation of the OBBB until at least July 1, 2027, in order to provide sufficient time for negotiated rulemaking committees to meet, for a proposed rule to be released, for public comments to be reviewed, and for a final rule promulgated with time for campuses to make system and other necessary changes before the start of a new award year. The letter requests (i) clear and direct communication to understand new annual and aggregate loan limits and student loan repayment plans; (ii) a comprehensive list of professional degree programs; (iii) proper staffing to implement the full scope of the OBBB; (iv) making the data used to determine median earnings for each program publicly available; (v) further guidance on the requirement for institutions to package non-federal grant aid before the Pell Grant; (vi) further guidance on institutional accountability reporting; and (vii) add additional constituency groups to the negotiated rulemaking committee.  

The Department of Education (the Department) has proposed a revision to the currently approved information collection request (ICR) on the Carl D. Perkins Career and Technical Education Act State Plan Guide. The Department is proposing to reinstate the previously approved version of the collection, which will eliminate the requirement that eligible agencies and eligible recipients use numerator and denominator specifications recently established by the Department to set State determined performance levels for the indicators of performance under the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins V). Comments are due on or before September 26, 2025. 

The Department of Education (the Department) sent a letter to Congress certifying that the 2026-27 FAFSA form will be available on time this fall with a scheduled launch date of October 1. The Department conducted beta testing in early August with over 1,000 applications successfully submitted.  

The Department of Education (the Department) is collecting comments on the revised information collection request, “Application for Approval to Participate in the Federal Student Aid Programs.” An institution must use this Application to apply for approval to be determined eligible and if the institution wishes, to participate; to expand its eligibility; or to continue to participate in the Title IV programs. An institution must also use the Application to report certain required data as part of its recordkeeping requirements. Comments are due by October 24, 2025. 

The Department of Education Secretary proposed to amend the regulation on the Public Service Loan Forgiveness (PSLF) program to exclude employers that engage in activities that have a “substantial illegal purpose.” The proposed rule would clarify the definition of a qualifying employer, define activities that have a substantial illegal purpose, address the impact on borrower eligibility, and ensure employers are given notice and the opportunity to respond to an adverse finding. The proposed change seeks to add definitions for: aiding or abetting, chemical castration or mutilation, child or children, foreign terrorist organizations, illegal discrimination, other Federal Immigration laws, substantial illegal purpose, surgical castration or mutilation, terrorism, trafficking, violating State law, and violence for the purpose of obstructing or influencing Federal Government policy. Additionally, the proposed change seeks to clarify that a borrower may not request reconsideration of a final determination by the Secretary that the employer lost status as a qualifying employer. Finally, the proposed change seeks to establish that an employer that loses PSLF eligibility could regain qualifying employer status after (10) ten years from the date the Secretary determines the employer engaged in activities that have a substantial illegal purpose, or (2) after the Secretary approves a corrective action plan. Comments are due by September 17, 2025.  

The Department of Education Office of Federal Student Aid (the Department) announced several changes to the 2026-2027 FAFSA form as required by the One Big Beautiful Bill Act (OBBBA), with an implementation date of October 1, 2025. The Department announced an updated Student Aid Index (SAI) asset calculation, which now excludes (i) the net worth of a family owned business with 100 or fewer full-time employees; (ii) the net worth of a farm on which the family resides; and (iii) the net worth of a commercial fishing business and related expenses owned and controlled by a family from net worth of business and farms. Additionally, Pell Grant eligibility criteria have changed, with the foreign earned income exclusion amount reported on the FAFSA form now being added to adjusted gross income (AGI). Finally, an applicant with a SAI equal to or greater than twice the maximum Pell Grant award amount for the award year is now ineligible for a Pell Grant, noting that for the 2026-27 award year, the threshold is $14,790.