Education Department Opens Dialogue on Reforming Federal Student Aid Rules

US Department of Education

WASHINGTON, D.C. — The U.S. Department of Education’s Office of Postsecondary Education has announced plans to initiate a comprehensive negotiated rulemaking process aimed at revising programs authorized under Title IV of the Higher Education Act of 1965. This effort seeks to streamline federal regulations governing higher education, reduce administrative bottlenecks, and improve student access to financial aid and loan forgiveness programs.

The Department is soliciting public input on potential reforms to a range of programs, including the Public Service Loan Forgiveness Program, the Pay As You Earn (PAYE) repayment plan, and the Income-Contingent Repayment (ICR) plan. Officials hope to generate actionable solutions that reduce costs for students and institutions while maintaining accountability and enhancing efficiency.

“This process will focus on how the Department can rightsize Title IV regulations that have driven up the cost of college and hindered innovation,” said Acting Under Secretary James Bergeron. “Not only will this rulemaking serve as an opportunity to identify and cut unnecessary red tape, but it will allow key stakeholders to offer suggestions to streamline and improve federal student aid programs.”

Rulemaking Under the Higher Education Act’s Provisions

Under Section 492 of the Higher Education Act, the Department of Education must consult the public as part of the regulatory development process for Title IV programs. The legislation requires the Secretary of Education to seek advice and suggestions from the public and relevant stakeholders before drafting regulatory changes. These consultations will culminate in a series of formal negotiations to determine the content of proposed rules.

The intended reforms are aimed at addressing long-standing challenges associated with financial aid programs overseen by the federal government. The Department emphasized its commitment to reducing program complexity and ensuring support is provided equitably and effectively to students from diverse backgrounds.

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Opportunities for Public Engagement

The Department will host two public hearings to gather feedback from stakeholders. The first hearing will occur in person on Tuesday, April 29, 2025, and the second will be conducted virtually on Thursday, May 1, 2025. Interested individuals and organizations are encouraged to participate in these sessions or submit written comments.

Written comments can be submitted through the Federal eRulemaking Portal at Regulations.gov. For those requiring accommodations or unable to use the portal, alternative submission methods are available by contacting the helpdesk at 1-866-498-2945 or via email at regulationshelpdesk@gsa.gov. The public comment period will close 30 days after the publication of this announcement in the Federal Register, ensuring ample time for stakeholders to contribute their perspectives.

More information can be found here.

Implications for Higher Education

The rulemaking process signifies a pivotal opportunity to reshape federal student aid programs, with potential benefits for students, educators, and institutions alike. If successful, these reforms could simplify loan repayment options, enhance the accessibility of loan forgiveness programs, and reduce administrative barriers faced by colleges and universities.

Critics of the current Title IV framework argue that overregulation has stymied innovation and unnecessarily inflated the cost of higher education. By addressing these concerns, the Department aims to foster a more equitable and efficient higher education system while ensuring that students face fewer financial obstacles on their path to academic success.

For policymakers, the results of this dialogue could set a precedent for how federal agencies work collaboratively with public stakeholders to address systemic challenges within the education sector.

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Looking Forward

The proposed rulemaking initiative reflects the Department’s broader mission to reduce regulatory burdens while maintaining the integrity of federal assistance programs. Education leaders and community advocates across the nation will closely monitor the outcomes of this process, as the decisions made during these negotiations stand to shape the landscape of federal aid for years to come.

The Department has affirmed its commitment to a transparent and inclusive process, ensuring that voices from across the higher education ecosystem are heard. Whether through testimony at the hearings or written submissions, the public now has a critical opportunity to influence the future of Title IV regulations and their impact on America’s students.

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