Comments on Section 127 Reform

Dear Speaker Johnson,

The Presidents Forum, a collaborative network of 17 innovative higher education institutions committed to expanding access and opportunity for working learners, writes to urge reforms to Section 127 of the Internal Revenue Code. Our member institutions serve over 1 million students annually, with a particular focus on working adults seeking to advance their education and careers. Our commitment to expanding educational access and creating debt-free pathways to higher education compels us to advocate for modernizing this critical program.

The current $5,250 annual limit on tax-free employer-provided educational assistance has remained unchanged since 1986. When adjusted for inflation, this amount would be approximately $15,000 today. This outdated cap significantly limits the program’s effectiveness in supporting working learners. While 73% of workers express interest in utilizing education assistance benefits, this drops to 39% when they must pay taxes on amounts exceeding the current cap. Taxes on payments above the cap are prohibitively high and discourage students from pursuing additional coursework within the same year.

As institutions deeply invested in workforce development and career advancement, we strongly support modernizing Section 127 through three key reforms:

  • Increasing the tax-free limit to better reflect current education costs
  • Indexing the amount to inflation to maintain its value over time
  • Expanding eligible expenses to include books and educational tools

In an era of rapid technological change and increasing demand for upskilling and reskilling, modernizing Section 127 would help more Americans access the education they need without incurring substantial debt.

We applaud the House Ways and Means Committee for including language that adjusts the $5,250 cap for inflation starting in 2026. We urge Congress to support transformative legislation like the Upskilling and Retraining Assistance Act (H.R. 6401) and the Upward Mobility Enhancement Act (H.R. 6402), sponsored by Representatives Danny Davis and Randy Feenstra. Investing in America’s workforce will strengthen our economy, support working learners, and help employers attract and retain talented employees.

Sincerely,

The Presidents Forum

Comments on Reconciliation

To Whom It May Concern:

The Presidents Forum represents 16 higher education institutions serving approximately one million students nationwide. Our association is committed to fostering accountable innovation, serving working learners, and prioritizing student success through high-quality, accessible education. After reviewing the House Education and Workforce Committee’s reconciliation legislation, we wish to highlight several important considerations as this process moves forward.

We are encouraged by elements of the bill that promote student success. Specifically, we applaud the expansion of Pell Grant eligibility to short-term, workforce-aligned programs and the commitment to maintaining essential funding for the Pell Grant program. We applaud the House for not excluding online programs, which are essential to a modern, inclusive higher education system. These provisions will help ensure that higher education remains accessible to students seeking to advance their careers through targeted educational opportunities.

We have concerns about other aspects of the legislation. The elimination of subsidized loans would increase the cost of attendance for low income individuals, and the proposed requirement for students to complete 30 credits annually to maintain Pell Grant eligibility (versus the current 12-credit-per-semester standard) creates significant barriers for working adults pursuing higher education. Students who would otherwise use Pell grants to pursue a degree may opt out rather than take additional credit hours they cannot manage due to work or other commitments. These changes make it harder for non-traditional students—especially working adults—to access higher education and improve their lives.

We support accountability measures for both students and institutions. Student outcomes should be the primary basis for accountability measures, rather than focusing on process inputs. Under any financial risk sharing arrangements institutions should have the ability to restrict federal loans for specific programs where appropriate. Additionally, the Department should be required to regularly report to Congress on the effectiveness of risk-sharing provisions.

The Presidents Forum stands ready to engage in further dialogue on these critical issues and serve as an essential voice for working learners in higher education policy discussions. Our member institutions’ deep experience in serving non-traditional students provides valuable insights that can help shape policies that truly support student success and workforce development. We welcome the opportunity to collaborate with policymakers to ensure that higher education remains accessible and effective for all learners.

Sincerely,

Wesley Smith

Executive Director
Presidents Forum

2025 Negotiated Rulemaking Initial Comments

Dear Acting Under Secretary Bergeron:

The Presidents Forum is a coalition of sixteen not-for-profit institutions serving approximately one million students nationwide. Our members share an access orientation and a commitment to student success, innovation, and flexible learning opportunities for working adults.

Our institutions serve working learners who juggle education with career and family responsibilities—a population historically overlooked in regulatory discussions. Moving forward, the Department should prioritize including negotiators who deeply understand and actively serve working learners. Representatives from institutions that specialize in serving working learners can provide critical insights into how proposed regulations might impact student access, persistence, and success.

We advocate for focused and limited regulatory development that respects state oversight and fosters accountable innovation. We believe that regulations should emphasize student outcomes over delivery methods, enabling institutions to innovate while maintaining quality and accountability across all learning modalities.

Based on our values, approach, and perspective, we offer the following recommendations for regulatory changes to enhance efficiency, transparency, and student outcomes.

  • Income Driven Repayment: We recommend the department address the volatility and lack of continuity surrounding income-driven repayment programs. The ongoing cycle of legal challenges, policy shifts, program rollouts, and rescissions creates significant uncertainty for borrowers trying to manage repayment. This environment makes it nearly impossible for borrowers to make informed, long-term financial decisions. A durable and predictable repayment framework—one that borrowers can rely on—should be the cornerstone of this rulemaking effort. An income driven approach can prevent borrowers from unintentionally enrolling in plans that do not match their financial capacity and would help reduce delinquency and default, particularly for those from low-income or non-traditional backgrounds.
  • Identity Verification: Requiring robust identity verification measures in FAFSA applications ensures the integrity of the financial aid system. The Department should implement more secure verification protocols so that institutions can better ensure that aid is distributed to legitimate applicants and reduce improper payments. While institutions support system integrity, the Department should be the one to implement and maintain appropriate verification protocols. This ensures consistent standards across all institutions while keeping the verification process manageable for prospective students.
  • Limit Interest Costs for Students: Limiting student loan interest capitalization to reduce the overall burden on borrowers. Interest capitalization significantly increases the total amount students must repay, often leading to extended repayment periods and increased financial strain. We encourage the Department to implement policies that minimize interest capitalization and work collaboratively with Congress to establish lower interest rates for federal student loans.
  • Loan Servicer Improvements: To enhance efficiency and improve borrower experience, loan servicing processes should be streamlined. We recommend consolidating and standardizing processes across servicers to reduce complexity. Performance-based contracting should be implemented to create accountability and reward servicers who maintain high-quality service and low default rates. Furthermore, the Department should incentivize servicers to modernize their platforms through automation and digital solutions—this would enable faster processing times, fewer errors, and better borrower communication.
  • Public Service Loan Forgiveness: The Presidents Forum strongly supports the Public Service Loan Forgiveness (PSLF) program as a critical tool for encouraging public service careers and reducing student debt burden. Clear PSLF eligibility requirements and application processes are essential for students to make informed decisions about their career paths and successfully navigate loan forgiveness opportunities.

The Presidents Forum is committed to fostering a higher education environment that is effective, affordable, and focused on student success. We believe that process plays a vital role in creating such an environment—any significant changes require comprehensive public input and feedback. We maintain that reforms not addressed in the Department’s original posting warrant their own dedicated rulemaking sessions. We look forward to providing input on additional important measures in future sessions.

Sincerely,

Wesley Smith

Executive Director
Presidents Forum

Skills First Coalition Letter of Support for the Bipartisan Agreement A Stronger Workforce for America Act

Dear Speaker Johnson, Leader Schumer, Leader Jeffries, and Leader McConnell:

The Skills First Coalition, a consortium of employers and innovative education providers advocating to advance policies that invest in and strengthen the alignment between education and skills training for in-demand jobs, is writing today to express our strong support for the bipartisan, bicameral, “A Stronger Workforce for America Act,” and urges its swift passage.

As a Coalition, we have consistently called on Congress to modernize the Workforce Innovation and Opportunity Act to advance a skills-based economy, expand and prioritize employer-led training, and support high-quality outcomes with high-quality data. America’s learners, workers, and employers must have access to education and workforce development that keeps pace with technological advancements, is accountable for outcomes, is flexible in its delivery, and is innovative in its offerings of high-quality learning.

A Stronger Workforce for America Act takes significant steps to provide more direct reskilling and upskilling to American workers. Specifically, we support the following provisions that create more opportunities for workers and improve America’s competitive advantage on the global stage:

• Directing no less than 50% of funds toward workforce skills education, ensuring our workforce system focuses on its primary goal of providing learners with in-demand occupational skills needed to compete in today’s labor market.
• Promoting employer-led learning models, better linking education to work.
• Incentivizing states to expand the adoption of skills-based hiring and learning that reward an individual’s competencies, knowledge, and prior work experience.
• Increasing the cap on incumbent worker training, helping our current workforce to reskill and upskill so they can remain competitive.
• Including digital literacy as a foundational skill to better align with an ever-changing economy.
• Encouraging states to streamline access to the Eligible Training Provider List and offer reciprocity among each other to ensure more individuals access high-quality education providers.
• Promoting better access to centralized data tools, including state wage records and the National Directory of New Hires, to measure outcomes consistently, reliably, accurately, and in real-time.
• Allowing high-quality in-person, online, and hybrid learning models that individuals can access in a variety of flexible and innovative ways.

We commend this bipartisan, bicameral agreement and urge its final passage.

Sincerely,

The Skills First Coalition

IBM Corporation
Cengage Group
American Trucking Associations Ampere Computing
Autos Drive America
Chegg
CompTIA
Coursera
HP Inc.
Indeed

Information Technology Industry Council (ITI) International Paper
LinkedIn
Presidents Forum
Retail Industry Leaders Association (RILA) Salesforce, Inc.
Semiconductor Industry Association (SIA) Society for Human Resource Management
(SHRM)
U.S. Chamber of Commerce

Presidents Forum Comments on Program Integrity and Institutional Quality Negotiated Rulemaking

Dear Secretary Cardona,

We write to you today on behalf of the Presidents Forum, which is composed of seventeen non-profit institutions committed to innovation in higher education and representing nearly a million students. The Forum is dedicated to prioritizing student needs and success above all other interests. With this approach and the unique student population we serve, we have become the leading voice for working learners in America.

As institutions that utilize technology and innovation to best serve our students, we emphasize the need for parity in mode and method regulation. As the education environment evolves, the importance for regulatory consistency has become more evident. We are committed to continuously improving student success outcomes for all students. We also are very concerned about the proposed regulations that focus on instructional modality and method rather than on outcomes. These regulations will be counter productive and will lead to accountability for the wrong metrics. 

At the foundation of all of our comments today is our belief that embracing technology and innovation in higher education is radically improving student access and outcomes. Accountability and transparency are necessary components to ensure innovation leads to improved outcomes. Regulators should advance accountability and transparency that is agnostic to modality and reveres student outcomes as paramount. 

Today, we write to apply this paradigm to proposed language contained in the July 23, 2024, Notice of Proposed Rulemaking. In general, we worry these proposed changes are representative of a broader approach to roll back and limit distance learning. Specifically, our comments concern the proposed language contained in §668.41(h), §668.22(b)(3)(ii), and 600.2(1)(iv).

668.41(h): Reporting of student enrollment in distance education or correspondence courses. For each recipient of title IV, HEA assistance at the institution, the institution must report to the Secretary, in accordance with procedures established by the Secretary, the recipient’s enrollment in distance education or correspondence courses.

668.22(b)(3)(ii): An institution must, within 14 days of a student’s last date of attendance, document a student’s withdrawal date determined in accordance with paragraph (b)(1) of this section and maintain the documentation as of the date of the institution’s determination that the student withdrew.

600.2(1)(iv): In distance education, 50 to 60 minutes in a 60-minute period of attendance in a synchronous class, lecture, or recitation, where there is opportunity for direct interaction between the instructor and students. 

In the case of 668.41(h), we understand that distance education courses are regulated under the Higher Education Act, and therefore requiring enrollment reporting is reasonable. Our greater concern is with the usage of this data once collected. It would be inappropriate to use this information to compare the quality of online and in-person learning. This study, published by the Center for Higher Education Policy and Practice, explains the dangers in making such comparisons. In short, “…Online, blended, and in-person delivery are modalities for learning, not proxies for the quality of instruction, pedagogy, and course design.” (Pg. 7)

Our principle of regulatory parity leads us to be extremely concerned about 668.22(b)(3)(ii). While we recognize and appreciate the intention of protecting taxpayer dollars by returning Title IV funds that are not being used appropriately, we believe the proposed rule violates this principle of parity. While many of our institutions have access to data to help identify when engaged distance-learners cease to engage, creating standards that aren’t applied to all modalities is problematic. The proposed carve-out for doctoral candidates further reinforces the perception that the Department treats elements of traditional education differently than online programs. We recommend that all institutions make timely title IV refunds regarding student withdrawals using the best data available to the institution regarding a student’s last date of attendance. 

The concept of attendance is rooted in traditional in-person higher education. Our institutions are the leading forces in using innovation to better meet students where they are, and providing a learning process that works for them. This means that distance learning is more than creating an in-person classroom through video conferencing. In these unique and strategic modalities, the traditional usage of classroom attendance limits learners and diminishes our ability to provide accessible educational opportunities to learners of all backgrounds and at all stages of life. Furthermore, applying attendance as a measure of academic engagement for asynchronous learning and not for synchronous learning is an example of inconsistent regulation of modality. 

Our concerns also involve the proposed definition change included in 600.2(1)(iv), which eliminates asynchronous instruction under the definition of “clock-hour.” Requirements that restrict asynchronous education limit the flexibility that many working learners need in order to be successful. 

The assumption behind the proposed removal of asynchronous education from the definition of “clock-hour” is concerning. Asynchronous education is inherently no less effective than synchronous activities, and students can receive the same (or higher) level and quality of instruction from asynchronous learning opportunities. Again, we urge regulation promulgation that focuses on outcomes, rather than modality. 

The Presidents Forum and Department of Education share the goal of providing quality, effective, and affordable higher education to learners across the country. Our institutions provide an invaluable resource to working and underprivileged learners, and maintain that parity in regulation, transparency, and accountability are necessary to providing the highest quality education to all students. 

Sincerely,

Wesley Smith

Executive Director

Presidents Forum