Introduction by Barbara Mistick

Dear Colleagues:

Action, or in one case inaction, took place this week on two issues affecting higher education.

First, after failing to bring two spending bills to a vote in the House of Representatives, the leadership decided to suspend further consideration of the FY 2025 appropriations bills and effectively start August recess a week early.

Among other things, this means the Labor-HHS-Education appropriations bill, which includes the student aid programs, is also stalled. Once both chambers return after Labor Day, they will have three weeks to coordinate the next steps on FY 2025 funding.

For most of the country, next Thursday is the day in which colleges and universities must begin implementation of the new Title IX rules. Despite several court orders preventing implementation in 21 states, the Department of Education has indicated that it intends for the new rules to still go into effect on August 1 in all jurisdictions that are not subject to an injunction. 

Today’s Washington Update reports on both the status of the appropriations bills and the various court challenges to Title IX, as well as the possible next steps in the legal proceedings.

Washington Update Schedule. Next week, much of the NAICU staff will be travelling to San Diego for the National Association of Independent College and University State Executives’ annual Summer Workshop, and our web services will be undergoing several updates. As a result, there will be no Washington Update published on August 2. There will be an edition published the week of August 5, which 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 will then return on September 9.

Soundbites

• The Department of Education released updated guidance to its Financial Value Transparency and Gainful Employment Frequently Asked Questions. The Department clarified several circumstances that may complicate the reporting institutions are required to perform, such as what to do when licensure exam pass rates are not available, what is the Department’s threshold for being “reasonably aware of” a student’s private loans, and more.

• The Department of Education released a reminder to institutions that students who complete the Free Application for Federal Student Aid (FAFSA) must be considered independent students if they are an unaccompanied homeless youth or a self-supporting youth at risk of homelessness. For more information regarding institutional responsibilities related to Title IV dependent determinations, see the Department’s related guidance.

• Legislation was introduced in both the House and Senate to make permanent the expansion of IRC Sec. 127, employer-provided education assistance, to include student loan repayments. The CARES Act expanded the allowable use of tax-free benefits employers can provide to employees so employees can use up to $5,250 annually to cover either education expenses or student loan repayment amounts. The expansion allowing the use of the benefit for student loan repayments is set to expire on December 31, 2025.

• NAICU Board of Directors Nominations. Starting on July 29, NAICU will begin accepting nominations for member presidents from multiple regions to serve on its Board of Directors. Member presidents from 30 states, the District of Columbia, and Puerto Rico will be 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 will receive an email from Barbara Mistick on Monday with further details.

• REMINDER – NAICU Webinar. NAICU is hosting a webinar, Preparing for the Unexpected: Natural Disasters and FEMA (register), on August 8 from 2:00-3:00 p.m. EDT. NAICU will be joined on the webinar by Denver Applehans, Advisor, Community and Private-Sector Partner Outreach, FEMA and Matthew Shpiner, Executive Director for Emergency Management, University of Miami.

As you communicate with your elected officials this summer, 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. 

Here is the Congressional summer recess calendar:

I’m looking forward to seeing my state executive colleagues next week in San Diego for their summer meeting. This annual meeting provides important opportunities to work with and learn from our state executives and to better understand the challenges they are facing in their states. 

Enjoy your weekend!

Regards,

Barbara

Barbara K. Mistick, D.B.A.
President, NAICU

For more information, please contact:
Barbara K. Mistick, D.B.A.