Federal Higher Ed Updates with Alex Ricci

by | Jul 10, 2025 | Policy, Video

Why it matters

Major changes to student aid programs and loan limits will significantly impact higher education institutions and students, requiring preparation for implementation challenges.

 

Key takeaways

  • Title IV changes: Workforce Pell Grant expansion and loan repayment modifications will affect students and institutions
  • Loan limit overhaul: Effective July 1, 2026, Graduate PLUS loans will be eliminated (with grandfathering) and Parent PLUS loans will have hard caps ($20,500 annual, $65,000 aggregate)
  • Accountability measures: New earnings accountability test represents first significant federal focus on student outcomes
  • Employer benefits: Section 127 employer education assistance ($5,250) now permanent and inflation-indexed

Negotiated rulemaking update

  • Recent narrowly-focused rulemaking session addressed PSLF eligibility restrictions per Trump’s executive order, with no consensus reached.
  • Department of Education likely to release draft rules within 30-45 days, with potential finalization before October 2025.
  • Future rulemaking may follow this faster, more targeted approach focusing on single issues.