US Education Department Plans Federal Aid Overhauls

Sweeping changes to federal student aid programs are under debate, with House Republicans proposing legislation that could make college more expensive for millions by tightening Pell Grant eligibility and eliminating subsidized loans, drawing criticism from education advocates concerned about impacts on low-income students. Meanwhile, the U.S. Department of Education has announced plans for public hearings and negotiated rulemaking to revise regulations under Title IV of the Higher Education Act, aiming to streamline programs like Pell Grants and Public Service Loan Forgiveness. The Department acknowledges concerns that current financial aid policies may contribute to rising college costs and is soliciting public input to inform future reforms. Recent FAFSA processing delays following simplification efforts have also disrupted aid access for many, particularly low-income and first-generation college students. Stakeholders are encouraged to participate in the rulemaking process to address these challenges and influence upcoming changes.