Dear Colleague:

In our last issue of Washington Update, I wrote that while the newsletter is taking a summer break, we would also be tracking several important issues on the horizon and would interrupt our recess should one of those issues surface.  Well, this week one did.

On Monday, the Department of Education released guidance to help colleges and universities understand the new legal restrictions on admissions practices as they seek to build diverse classes of students.  The guidance is in response to the Supreme Court’s decision on race-conscious admissions.  See our lede story below for the key details.

In other news, we continue to advocate against the proposed funding cuts to the Supplemental Educational Opportunity Grant (SEOG) and Federal Work-Study (FWS) programs (see the Action Alert I sent previously for more details).  When Congress returns in September, it will work quickly to address funding bills before the beginning of the fiscal year on October 1.

To help broaden the advocacy efforts, the Student Aid Alliance, which I serve as a member of its steering committee, has created a Contact Congress tool to encourage and help campus communities send the message to Congress to oppose these cuts to student aid funding. By simply entering a name and address, anyone can send the template message, or tailor it to include a personal message on FWS and SEOG to their Representative and both Senators.  I hope you will encourage your community to engage in this outreach effort.

Washington Update Schedule.  Again, unless events warrant otherwise, Washington Update will be on hiatus until September 8.  However, there remain two outstanding key issues that we are expecting to be announced or released in the coming weeks that could change our schedule, including:

• Continued action on spending, especially related to SEOG and FWS; and
• The release of the proposed overtime rules from the Department of Labor.

Soundbites

• This week, several NAICU institutions received new borrower defense to repayment (BDR) notices from the Department of Education. Based on our conversations with the Department, these notices are not being processed under the 2023 regulations that are currently under injunction. Instead, they are being processed as part of a court settlement under the 2016 regulations, which means these claims were filed between June and November of last year and the Department has a three-year clock for deciding. Importantly, because these claims are under the 2016 regulations, the language about how a non-response is viewed in favor of the student doesn’t apply. Institutions are not required to respond, though they certainly may if they have relevant information to share with the Department.

           If you received a notice and have questions about your status, please contact Justin
           Monk (Justin@NAICU.edu), NAICU’s director of student and institutional aid policy.

• The Department of Education issued a Dear Colleague letter on how it plans to implement certain aspects of the new federal need analysis system that will go into effect on July 1, 2024.  The letter is part of a longer-term rollout that is expected to continue throughout the coming months as the Department grapples with the massive implementation requirements by the coming changes to the federal method for determining eligibility for the federal student aid programs. In addition to the letter, the Department also released a Q&A to provide further guidance and its 2024-2025 Draft Student Aid Index and Pell Grant Eligibility Guide.
• The Department of Education opened a 60-day public comment period for interested parties to submit their feedback on changes the Department recently made to the Income-Driven Repayment Request Form, in accordance with final rules published July 10, 2023, and relevant FUTURE Act provisions. These changes include adapting the form for use online, changing the REPAYE name to the new SAVE plan, and adding the ability to consent or decline to use tax information from the Internal Revenue Service. A more detailed description of these changes is available and those interested in submitting comments must do so by October 10, 2023. 
• The National Center for Education Statistics released data from the 2019–20 National Postsecondary Student Aid Study (NPSAS:20), including comprehensive student-level information on attendance, financial aid, family characteristics, and other facets. New to the study in this version are data that measure food insecurity, homelessness, and the impact of COVID-19. NPSAS is a national survey of undergraduate and graduate students conducted every 3-4 years with the primary purpose of measuring how students pay for higher education. First-look reports on student financial aid estimates and the impact of the COVID pandemic are now available.

Today’s Washington Update also reports on changes to student achievement standards recommended by NACIQI and a recent court ruling on borrower defense to repayment and closed-school discharges.
Finally, I’d like to welcome you back to campus from your own summer break.  I know this is such an inspirational time full of hope and enthusiasm for the year ahead.  However, for those affected by the wildfires in Maui, either directly or indirectly, this is also a time of hope but also of survival and determination.  Our hearts and prayers are with you.

Regards,
 
Barbara
 
Barbara K. Mistick, D.M.
President, NAICU