New Student Loan Regulations Open for Comments

The US Department of Education released a Notice of Proposed Rulemaking (NPRM) to implement changes to federal student loan programs required by the One Big Beautiful Bill Act (OB3). These rules were the subject of negotiated rulemaking last year and now move to the notice-and-comment phase. Key highlights include:

• New federal loan limits for graduate students, professional students, and parents
• Phase-out of the Graduate PLUS Loan program
• A clarification that the term “professional student” is used only to determine eligibility for higher loan limits
• Streamlining federal student loan repayment plans, including:
  • Phasing-out existing Income-Contingent Repayment plans
  • Creating a new tiered standard repayment plan
  • Establishing a new income-driven option called the Repayment Assistant Plan
• Modifications for borrowers in default, including allowing those who previously rehabilitated a loan a second chance to rehabilitate again and return to repayment

The Department is accepting public comments for 30 days following publication in the Federal Register. If these issues are of concern to your school, please consider participating in the rulemaking process by submitting comments to ED.

This NPRM is separate from the AHEAD negotiated rulemaking that concluded earlier this month, which creates ED’s controversial new Accountability Framework. AACS is currently focusing our advocacy efforts on the AHEAD rules in advance of the forthcoming notice-and-comment period. A separate NPRM for the AHEAD rules is expected over the next few months, and all AACS schools should be prepared to submit comments to ED in that rulemaking. AACS will keep you informed on how to have your voice heard to push back against the new Accountability Framework that unfairly targets the AACS community.