Introduction by Barbara K. Mistick

Dear Colleague:

While Congress has left Washington for its summer recess, there are still several key issues we’re tracking as your senators and representatives head out of town.

The Free Application for Federal Student Aid (FAFSA) continues to occupy the time of many here in Washington, including both the Department of Education and Congress. The biggest news this week is that the Department is formally moving the launch date for the 2025-26 FAFSA to December 1 with institutional testing scaling up between October 1 and December 1.

I also want to thank many of you who took the time to complete our recent survey on the launch of the revised FAFSA. We found that 3 out of 4 private, nonprofit colleges and universities reported issues related to FAFSA availability, and processing changed the composition of their incoming class. In addition, half reported their incoming class was more difficult to fill and 43 percent reported a smaller incoming class. Also, to reflect what so many of you have been telling us, 96 percent of institutions reported increased levels of stress on institutional staff and/or resources.

This data will greatly help inform our continued work with the Education Department and Congress as it plans for the 2025 FAFSA. We plan to reissue the survey in September to compare the situation before and after the start of the academic year.

The Education Department also announced several additional adjustments to the implementation of the FAFSA , including delaying the availability of batch correction functionality until next year. The corrections announcement adds even more stress to campus staff. 

In the meantime, Congress continues to step up its oversight of the ongoing FAFSA challenges with the Senate appropriations bill proposing two impact studies: one on the changes made to the FAFSA underlying need analysis and eligibility criteria for this year’s form, including the changes to family farm and siblings in college, and a second study on requiring applicants to report their family farms as assets.  These provisions are of particular concern to private, nonprofit institutions and we appreciate the Senate’s interest in digging into the underlying effects of these provisions.

The Senate funding bill also boosts the Department of Education budget by some $8 billion to $80 billion for FY2025. The bill proposes a $100 increase to the Pell Grant maximum award, pushing it to $7,495 for the 2025-26 award year. It would also level fund Supplemental Educational Opportunity Grants and Federal Work-Study, while providing modest increases for TRIO and GEAR UP.  

Soundbites

• Over the weekend, draft versions of the Financial Value Transparency and Gainful Employment Completers List were sent to institutions by the Department of Education. Schools now have 60 days to review those lists and submit corrections before the deadline of October 5. For more information, including how to locate this list, see the Department’s notice here.
  
  
• National Labor Relations Board General Counsel Jennifer Abruzzo issued a memo (insert) stating that institutions cannot deny unions seeking to organize student workers access to student records because of conflicts with the Federal Educational Rights and Privacy Rights Act (FERPA) but must work to accommodate the request.  The Department of Education consulted on the memo’s issuance and defended the NLRB action claiming educational institutions need to work with unions to gain the required student consent. 
  
  
•       The Department of Education continues to push forward on enforcing the new Title IX rules in the states and institutions where they have not been enjoined from enforcing them.  Among the new resources they have made available:  Small Entity Compliance Guide, which explains the 2024 Title IX Regulations for small entities.
  
  
•       The Department of Education intends to notify student loan borrowers that they may be eligible for loan forgiveness when rules proposed earlier this year go into effect. Relief would be restricted to borrowers who fall into specific categories, such as those that owe more now than when they started repayment. For more information on who may qualify, please see the Department’s debt relief page.
  
  
•       An estimated 59% of students potentially eligible for the Supplemental Nutrition Assistance Program (SNAP) did not receive such benefits in 2020, according to a recent report on college student food insecurity from the Government Accountability Office. The Ranking Members of the House Agriculture and Education and the Workforce Committees, Rep. David Scott (D-GA) and Rep. Bobby Scott (D-VA), jointly requested the study as Congress is considering reauthorization of the Farm Bill, which authorizes SNAP. A top issue is how to provide better awareness about and access to SNAP for college students.
  
  
•      Legislation was introduced in both the House and Senate that would make permanent the option for employees to use tax-free employer-provided education assistance for either tuition expenses or student loan repayment under Sec. 127 of the Internal Revenue Code. The CARES Act expanded Sec. 127 to allow the student loan repayment option, but the expansion is set to expire on December 31, 2025.  The  Employer Participation in Repayment Act is another bipartisan effort to expand Sec. 127, and follows legislation introduced last year to increase the annual tax-free benefit amount.
  
  
•       Applications are available for the Transitioning Gang-Involved Youth to Higher Education (TGIY) Program and are due September 30, 2024.  A total of $2.97 million is available for three awards to public or private nonprofit higher education institutions and partner nonprofit organizations to help gang-involved youth pursue higher education opportunities leading to certification or credentials. 
  
  
•           NAICU Board of Directors Nominations: Today is the last day to submit nominations for member presidents to serve on the Board of Directors. Member presidents from 30 states, the District of Columbia, and Puerto Rico have been invited to submit a nomination for one of the seats. If you are in one of the regions with a vacant seat on the board, you have received an announcement of the call for nominations with further details. 
  
  
•      Yesterday NAICU hosted the webinar, Preparing for the Unexpected: Natural Disasters and FEMA. I want to thank Denver Applehans from FEMA and Matthew Shpiner from the University of Miami (FL) for sharing their expertise on this timely subject.  For those who missed the webinar, a recording is available.

Home & Away

With Congress in recess and many of the members home in their districts, it is paramount that you contact your congressional delegation this month.  As you communicate with your elected officials, please continue to remind them how critical the student aid programs are for students and the impact they have in your state and congressional district. NAICU has created a series of talking points to help with your conversations.

Washington Update Schedule.  Today's edition of Washington Update will be our last until after Labor Day as Congress will be in recess. Unless there is breaking news we need to report, Washington Update returns on September 9.

Enjoy the weekend!