Higher Ed Policy Roundup: Vol. 9 - Issue 10

Late last week, President Trump signed an executive order (EO) directing the Education Secretary to restrict the Public Service Loan Forgiveness (PSLF) program for certain public service sectors. The PSLF program, enacted with bipartisan support in 2007, was established to provide a financial incentive for borrowers who invest 10 years of their careers in public service while making consistent student loan payments. In the EO, President Trump accuses the previous administration of abusing the program and asks that the Education Secretary revise the program to ensure that the definition of public service “excludes organizations that engage in activities that have a substantial illegal purpose.”

On Tuesday, the Education Department (ED) laid off nearly 50% of its workforce as part of President Trump’s plan to dismantle the agency. The layoffs sent shockwaves through the education community, leading to a suit filed by 21 attorneys general arguing that the move “incapacitates components of the Department responsible for performing functions mandated by statute, effectively nullifying those mandates.”

The Urban Institute published a report on the effects of loan limits on master’s degree programs, using the parameters outlined in the College Cost Reduction Act, and found that the impact would vary considerably by state and institution type.

In a recent report, the Brookings Institution found that while college prices have begun to fall for almost everyone, it does not always translate to affordable prices.

The following bill(s) have been recently introduced for consideration by the 119th Congress (2025-26):    

S. 880 – Fair College Admissions for Students Act [Sen. Jeff Merkley (D-OR)] would amend the Higher Education Act of 1965 to prohibit institutions of higher education participating in federal student loan programs from giving preferential treatment in admissions to legacy students or donors.

S. 942 – Resident Education Deferred Interest (REDI) Act [Sen. Jacky Rosen [D-NV)] would amend the Higher Education Act of 1965 to provide interest-free deferment on student loans for borrowers serving in a medical or dental internship or residency program. A companion bill, H.R. 2028, was introduced in the House by Rep. Brian Babin (R-TX-36).

S. 994 – [Sen. Richard Durbin [D-IL)] would provide accountability in higher education.

H.R. 2003 – Affordable Loans for Students Act [Rep. Michael Lawler [R-NY-17)] would amend the Higher Education Act of 1965 to lower the interest rate on federal student loans to two percent.