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Latest Cases & Developments
Date:
U.S. Department of Education Announces Plans to Address Student Aid Fraud (May 28, 2025)
U.S. Department of Education (the Department) announced plans to address fraud in student aid after a recent comprehensive analysis found “nearly $90 million disbursed to ineligible recipients.” The Department plans to (1) strengthen real-time data-sharing with the Social Security Administration to prevent identity theft and avoid erroneous distribution to deceased individuals; (2) gain additional specificity on student status from the Department of Homeland Security (DHS) to prevent disbursement to individuals granted immigration parole status (individuals who are not immediately eligible for student aid); (3) resume National Student Loan Database System post screening for the 2024-25 and 2025-26 FAFSA cycles to ensure that students only access aid they are eligible to receive; and (4) use data models to flag applications with suspicious or inconsistent information to identify individuals suspected of using someone else’s identity to complete FAFSA forms.
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Financial Aid, Scholarships, & Student Loans | StudentsDate:
Practice Guide on Race Conscious Scholarships and Financial Aid (May 27, 2025)
NACUA’s new Practice Guide on Race Conscious Scholarships and Financial Aid. The Practice Guide reviews the necessary steps postsecondary institutions should take to verify that financial aid awards and scholarships are structured and administered in a race-neutral manner in light of heightened scrutiny accompanying changes in the legality of race-based affirmative action in admissions. It provides a primer on the relevant legal and regulatory background and reviews methods for navigating existing restricted scholarships, such as “pool and match” methodology. NACUA thanks its Saul Ewing members Josh Richards, Amy Piccola, and Matt Reinhart for their assistance in preparing this Practice Guide on Race Conscious Scholarships and Financial Aid.
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Financial Aid, Scholarships, & Student Loans | StudentsDate:
U.S. Department of Education Updates on Expanded Late Disbursement Flexibilities and SAI for the 2024-25 FAFSA Cycle (May 27, 2025)
U.S. Department of Education Office of Federal Student Aid (the Department) announced the extension of flexibilities for late disbursements to all students who filed a FAFSA form for the 2024-25 award year who were or are impacted by a known issue announced by the Department, which prevented their official Student Aid Index (SAI) from being calculated by the FAFSA Processing System (FPS) prior to the end of their enrollment. The Department shared that it is aware of the ongoing FPS issues, stating that in some cases, records with a reject code can be resolved by the applicant or the school, but if both are blocked from resolving the issue and thus from obtaining an official SAI by the known system issue, they should “document the issue in the student’s file and wait for a resolution from the Department” while the Department works to implement permanent fixes for the issues. It also encouraged institutions to “utilize the additional flexibilities provided … to award … aid and make late disbursements to students who would have otherwise been eligible to receive Title IV funds prior to the end of their enrollment.”
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Financial Aid, Scholarships, & Student Loans | StudentsDate:
U.S Department of Education Application for New Awards at HBCUs, TCCUs, and MSIs (May 27, 2025)
U.S. Department of Education (the Department) issued a notice inviting applications for new awards for fiscal year 2025 for “Personnel Development to Improve Services and Results for Children with Disabilities—Personnel Preparation of Special Education, Early Intervention, and Related Services Personnel” at Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and Other Minority Serving Institutions (MSIs). The notice states that the purpose of the program is to (1) help address State-identified needs for personnel preparation in special education, early intervention, related services, and regular education to work with children, including infants, toddlers, and youth with disabilities; and (2) ensure that personnel have the necessary skills and knowledge to be successful in serving those children. The Department will fund projects within HBCUs, TCCUs, and MSIs that prepare special education, early intervention, and related services personnel at the bachelor’s degree, certification, master’s degree, educational specialist degree, and clinical doctoral degree levels to serve in a variety of settings. The deadline for applications is June 26, 2025.
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Contracts | Grants, Contracts, & Sponsored Research | ResearchDate:
GSA Letter to Federal Agencies on Review of Contracts with Harvard University (May 27, 2025)
U.S. General Services Administration (GSA) sent a letter to all federal agencies advising them to review their federal government contracts with Harvard University and affiliates for termination or transition of the contracts. The letter states that “GSA understands that Harvard continues to engage in race discrimination, including in its admissions process and in other areas of student life,” criticizes the University’s post Students for Fair Admissions v. Harvard admissions process, and cites recent admissions statistics that it asserts “vary significantly by race.” It goes on to admonish the University for alleged discriminatory practices on the Harvard Law Review, fellowship awards, and administrative decisions. The letter recommends that the respective agencies terminate contracts “for convenience” for failure to meet standards, and transition to a new vendor, and urges agencies to solicit alternative vendors for future services for which they otherwise might have considered the University. It concludes with a request for agencies to report to the Federal Acquisition Service (FAS) Commissioner on its actions or intended actions with respect to each referenced contract by June 6, 2025.
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Contracts | Governance | Government Relations & Community Affairs | Grants, Contracts, & Sponsored ResearchDate:
Hoffman v. Board of Regents of the University of Wisconsin System (W.D. Wis. May 27, 2025)
Opinion and Order Granting in Part Defendants’ Motion for Summary Judgment. Plaintiff, a white woman who was appointed interim director of the Multicultural Student Services Department (the Department), alleged that her former employer, the University of Wisconsin—Eau Claire, discriminated and retaliated against her under Title VII and the Equal Protection Clause. Plaintiff contends that the University demoted her from her leadership position, refused to stop racially discriminatory comments about her presence in the Department, forced her to transfer to a different department, and then retaliated in various ways against her for filing a racial discrimination complaint. Plaintiff alleged that following her appointment as interim director, students, faculty, and staff objected to her appointment because she was white, questioning whether she “can do as effective a job as a person of color, within a space for people of color.” Plaintiff was then removed as interim director and made the assistant director instead. Criticism of the Department’s staff continued as an alumni group posted online that the Department was “overwhelmingly white” and that “positions of decision-making authority were being strategically replaced by white folks.” Additionally, over 100 faculty members signed an open letter expressing concerns about the “marginalization” of students served by the Department, the resignation of staff who served those students, and the “disregard for collaboration and shared governance” in the Department. While University leadership was aware of the online remarks and the faculty letter, plaintiff maintains that they did not speak against it. Plaintiff further alleged that she experienced discrimination within the Department in her relationships with faculty and staff, when non-white faculty and staff held three meetings during the spring and summer of 2022 and excluded plaintiff. Plaintiff also alleged that some staff members refused to communicate with her after she was named assistant director and was told “everyone’s questioning your legitimacy in this office.” Plaintiff allegedly reported to human resources in July 2022 that she wanted to file a racial discrimination complaint about her experiences in the Department but was instead offered transfer to another department as a resolution. Plaintiff also asserted a hostile work environment claim regarding the criticism from the campus community about appointing white people to departmental leadership, and that the University discriminated against her based on her race when it demoted her from the interim director position, transferred her to another department, and removed her as the instructor from a course. The court dismissed the hostile work environment claim, finding that plaintiff showed nothing more than “relatively isolated instances of non-severe misconduct,” which were not sufficiently severe or pervasive to alter the terms of her employment. The court permitted the discrimination claim to proceed, reasoning that although plaintiff did not suffer losses in title or salary, a reasonable jury could find that the loss of her leadership responsibilities was “harm respecting an identifiable term or condition of employment.” Finally, it found that a reasonable jury could find that losing leadership responsibilities would deter an ordinary employee from complaining about discrimination, and thus, plaintiff’s retaliation claim may proceed.
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Discrimination, Accommodation, & Diversity | Race and National Origin DiscriminationDate:
U.S. House of Representatives Passes the One Big Beautiful Tax and Spending Bill (May 22, 2025)
The U.S. House of Representatives passed the “One Big Beautiful Bill” with a vote of 215 to 214. The tax package provisions that would impact postsecondary institutions the most include (1) limiting Pell eligibility; (2) eliminating subsidized student loans; (3) eliminating Grad PLUS and restricting Parent PLUS loans; (4) imposing new limits on federal aid; (5) reducing forbearance and deferment options; (6) modification of the endowment tax; (7) impact on charitable giving; (8) expansion of tax on executive compensation; and (9) social security number requirement for tax credits. It now moves to the Senate with hopes of passing by July 4, 2025, though it may occur later in the summer.
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Endowments & Gifts | Financial Aid, Scholarships, & Student Loans | Students | Taxes & FinancesDate:
U.S. Office for Civil Rights Announces Title VI Violation at Columbia University (May 22, 2025)
U.S. Office for Civil Rights (OCR) and the U.S. Department of Health and Human Services (HHS) announced that Columbia University violated Title VI of the Civil Rights Act of 1964 by acting with deliberate indifference towards student-on-student harassment of Jewish students from October 7, 2023, through the present. The announcement states that the findings of violation are based on information and documents obtained during investigation including witness interviews; examination of written policies and procedures; reliable media reports that contemporaneously capture antisemitic incidents and events at the University; and reports from the University’s own Task Force on Antisemitism. Specifically, the announcement states that the University failed to (1) establish effective reporting and remediation mechanisms for antisemitism until the summer of 2024; (2) properly abide by its own policies and procedures when responding to Jewish students’ complaints; (3) abide by its only policies and procedures governing student misconduct against Jewish students; (4) investigate or punish vandalism in its classrooms, which include the repeated drawing of swastikas and other universally recognized hate images; and (5) enforce its time, place, and manner restrictions for protests held on campus, such as inside and around its academic buildings, residence halls, and libraries since October 7, 2023.
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Discrimination, Accommodation, & Diversity | Race and National Origin Discrimination | Religious Discrimination & AccommodationDate:
John Doe v. Donald J. Trump (N.D. Cal. May 22, 2025)
Order Granting Motions for Preliminary Injunctions and Setting Case Management Conferences. Set of consolidated cases where plaintiffs, several foreign nationals admitted to the United States through the Student Visitor and Exchange Program (SEVP) who learned that their status in the Student and Exchange Visitor Information System (SEVIS) was changed from active to terminated, sought preliminary injunctive relief against Donald J. Trump, in his official capacity as President of the United States, Kristi Noem, in her official capacity as Secretary of the Department of Homeland Security (DHS), Todd M. Lyons, in his official capacity as Acting Director of Immigration and Customs Enforcement (ICE), and Moises Becerra, in his official capacity as Acting Field Office Director of ICE’s San Francisco Office of Detention and Removal. Plaintiffs alleged defendants violated the Due Process Clause of the United States Constitution and the Administrative Procedure Act (APA) in changing plaintiffs’ SEVIS status. Finding in plaintiffs’ favor, the Court reasoned that “defendants’ argument that there is a distinction between having an active SEVIS record and maintaining lawful F-1 status is unpersuasive and unsupported by the record. By terminating plaintiffs’ SEVIS records, defendants altered plaintiffs’ legal status within the United States . . . the Court does not find it speculative to conclude that, in the absence of an injunction, defendants would abruptly re-terminate SEVIS records without notice.” In granting plaintiffs’ motions for preliminary injunction, the Court also enjoined defendants from arresting and incarcerating any of the named plaintiffs in the consolidated cases and similarly situated individuals nationwide; from transferring any of the named plaintiffs in these cases and similarly situated individuals nationwide from outside the jurisdiction of their residence pending the resolution of the proceedings; from imposing any adverse legal effect on any named parties in these cases and similarly situated individuals nationwide that otherwise may be caused by the termination of their SEVIS record; and from reversing the reinstatement of the SEVIS record of plaintiffs in these cases and similarly situated individuals nationwide who maintain status under 8 C.F.R.
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Immigration | International Students
NACUA Annual Conference
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