Senate Republicans Introduce Bill to Prohibit ED from Canceling Federal Student Loans
Following the Department of Education’s announcement on July 31, 2024 that it would be taking steps to begin the next step toward providing student debt relief to tens of millions of borrowers this Fall, Senator Mitt Romney (R-UT), Senate Health, Education, Labor, and Pensions Committee Ranking Member Bill Cassidy (R-LA), Senator Tim Scott (R-SC), and Senator Thom Tillis (R-NC) introduced the Student Loan Accountability Act, which would prohibit the Department of Education, Department of Justice, and the Department of Treasury from taking any action to cancel or forgive the outstanding balances, or portions of balances, of federal student loans.
“Despite the Supreme Court’s ruling last summer that President Biden’s student loan forgiveness proposal was unconstitutional, the White House continues to cancel student loans and publicly entertains additional cancellation policies,” said Senator Romney.
A copy of the press release is found at: https://www.romney.senate.gov/romney-colleagues-introduce-bill-to-stop-president-biden-from-cancelling-student-loan-debt-2/.
House Education and the Workforce Committee Chairman Foxx Issues Subpoena on ED’s FAFSA Rollout
On July 25, 2024, House Education and the Workforce Committee Chairman Virginia Foxx (R-NC) issued a subpoena to Secretary of Education Miguel Cardona compelling him to hand over documents associated with the rollout of the 2024-2025 FAFSA. Chairman Foxx issued a press release where she said that the subpoena comes after months of hedging and delays on the part of Secretary Cardona and other Department of Education officials. Chairman Foxx said: “Millions of students are relying on accurate information in order to determine their next steps, but the Biden-Harris administration is too concerned about hiding their incompetence to provide applicants with the certainty they need. From refusals to update staff to blocking the GAO [Government Accountability Office] investigation, it’s clear that the Department of Education isn’t going to give its co-equal branch the relevant information willingly, so today’s subpoena is the only logical next step.”
A copy of the press release is found at: https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=411832.
Cassidy Holds Federal Agencies Accountable to Congress
On July 23, 2024, Senator Bill Cassidy, M.D. (R-LA), Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, introduced the Upholding Standard of Accountability (USA) Act to rein in the executive branch and ensure federal agencies are held accountable to Congress. This bill comes as the Supreme Court recently overturned its previous 1984 Chevron decision, which required federal courts to defer to an agency’s interpretation of ambiguous provisions in federal statutes so long as the court determined that the agency’s interpretation was reasonable.
Senator Cassidy said: “For decades, the executive branch has exploited Chevron deference to increase its power beyond what Congress intended, all while skirting congressional oversight…Now, with Chevron deference overturned, Congress must work to rein in the executive branch and hold it accountable to the people and their elected representatives.”
Specifically, the USA Act would:
• Require the head of a federal agency signing a major rule to testify about the rule before the committee of jurisdiction within 30 days of the rule being published;
• Require each person nominated to a Senate-confirmed position to testify before the committee of jurisdiction prior to Senate confirmation;
• Improve cost-benefit analyses by requiring federal agencies to conduct retrospective reviews of such analyses for major rulemakings within five years of each rule’s effective date;
• Clarify that federal agencies are permitted to communicate with Congress at all times regarding proposed rules; and
• Require timely, substantive responses to congressional oversight from federal agencies.
A copy of the press release is found at:
https://www.help.senate.gov/ranking/newsroom/press/ranking-member-cassidy-introduces-legislation-to-rein-in-administrative-state-amid-overturning-of-chevron-deference.
FSA Posts School Participation Information
On August 13, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-24-102) announcing it will be publishing information related to school participation in the student financial assistance programs. In order to improve transparency, FSA will post on its data center website the participation statuses of the institutions currently participating in one or more Title IV programs executed between January 1, 2024 and June 26, 2024. These postings will be updated regularly to reflect the changed PPA statuses for institutions and add copies on a rolling basis of provisional PPAs that are issued after June 26, 2024.
In addition, on August 14, 2024, to improve transparency, institutional accountability, and general deterrence, FSA will post a list of adverse administrative actions initiated on or after October 1, 2021 (the start of fiscal year 2022) through July 31, 2024, against institutions participating in Title IV programs. This information will be updated on a quarterly basis, with the next quarterly update to occur sometime after October 1, 2024.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-08-13/fsa-posting-school-participation-information.
Biden-Harris Administration takes Next Step Toward Additional Debt Relief for Tens of Millions of Student Loan Borrowers
On July 31, 2024, the Biden-Harris Administration announced that it will begin the next step toward providing student debt relief to tens of millions of borrowers this Fall. Beginning on August 1, 2024, the Department of Education will begin emailing all borrowers with at least one outstanding federally held student loan to provide updates on potential student debt relief, and to inform them they have until August 30th to call their servicer and opt out if they do not want debt relief. “The rules that would provide this relief are not yet finalized, and the email does not guarantee specific borrowers will be eligible. The Department will provide additional information to borrowers once the rules are finalized this fall.” The announcement states that if the rules are finalized as proposed, it would bring the total number of borrowers eligible for student debt relief to over 30 million.
If the rules are finalized as the Department has proposed, the Secretary of Education would be able to provide partial or full debt relief for the following groups of borrowers:
• Borrowers who owe more now than they did at the start of repayment.
• Borrowers who have been in repayment for decades.
• Borrowers who are otherwise eligible for loan forgiveness but have not yet applied.
• Borrowers who enrolled in low-financial value programs.
If finalized as proposed, the Department expects that all four of these proposed forms of relief would be provided to eligible borrowers without requiring any action from borrowers, and no application would be needed. However, students may choose to opt out of this debt relief by contacting their servicer by August 30, 2024. Federal Student Aid (FSA) announced as to how students may opt out of the potential student debt relief. (See article below.)
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-takes-next-step-toward-additional-debt-relief-tens-millions-student-loan-borrowers-fall.
Secretary of Education Miguel Cardona said: “Today, the Biden-Harris administration takes another step forward in our drive to deliver student debt relief to borrowers who’ve been failed by a broken system.”
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-takes-next-step-toward-additional-debt-relief-tens-millions-student-loan-borrowers-fall.
FSA Announces Information on How Borrowers Can Opt-Out of Potential Debt Relief
On August 6, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-24-98) announcing that it was starting to send emails to federal student loan borrowers with at least one ED-held loan to provide information about potential student debt relief and their ability to opt-out of receiving debt relief. Borrowers who want to be included in the potential student debt relief do not need to take any action. The announcement provides information to institutions about how borrowers can opt-out of the potential student debt relief and how to direct student or borrower questions if borrowers reach out to their institution.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-08-06/update-student-debt-relief-opt-out-communications.
FSA Announces Information and Reporting Reminders for the FISAP
On July 31, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (CB-24-16) on information and reporting reminders for the Fiscal Operations Report for 2023-2024 and Application to Participate for 2025-2026 (FISAP). Schools that had Campus-Based expenditures for the 2023-2024 award years and schools that wish to request funding under the Campus-Based programs for the 2025-2026 award year are required to submit a FISAP via the COD website. The deadline for the electronic submission of the FISAP is 11:59 p.m. Eastern time (ET) on Tuesday, October 1, 2024. Transmission must be completed by midnight.
A copy of the Electronic Announcement is found at:
https://fsapartners.ed.gov/fsa-print/publication/1006106.
FSA Issues Update on Identity Validation Flexibilities for Individuals without Social Security Numbers and Remaining Scope for the 2024-2025 FAFSA Cycle
On July 30, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (GENERAL-24-95) providing an update on identity validation flexibilities for individuals without Social Security Numbers and remaining scope for the 2024-2025 FAFSA cycle.
Identity Validation for Individuals without a Social Security number
On April 30, 2024, the Department announced changes to its system to temporarily allow those without a SSN to immediately access the online 2024-2025 FAFSA form after creating a StudentAid.gov account, foregoing the need to have the identity validation process completed prior to a student submitting their FAFSA form. FSA previously explained that individuals without a SSN would have to complete the validation process before the beginning of the 2025-2026 FAFSA application cycle to avoid being placed in restricted status and being unable to contribute to the form.
The Department is extending this process change into the 2025-2026 FAFSA cycle and will not implement any form of restricted status for students or contributors without a SSN.
- FAFSA Partner Portal (FPP) Functionality
The Department announced that it will delay the following FPP features:
- ISIR Request: The Department will delay the functionality of allowing users to request a single ISIR until later this award year.
- Request for Sweep of ISIRs (YTD): All Title IV participating institutions, state aid agencies, and designated scholarship organizations were enrolled to automatically receive ISIRs for the 2024-2025 cycle. Schools that are approved mid-cycle to participate in the Title IV Programs will only receive ISIRs that are processed after the date their Application to Participate is approved. The Department anticipates implementing the functionality beginning with the 2026-2027 cycle.
- ISIR Compare: This feature allows users to compare up to four FAFSA form transactions. The Department anticipates implementing this functionality beginning with the 2026-2027 cycle.
As a reminder, the Department previously announced that a remaining FPP feature, V4 and V5 Verification outcomes reporting would be available later in 2024.
- Services Available Via the FSAIC for 2024-2025 FAFSA Processing Cycle
Center representatives are available to aid students and families with completing the FAFSA form and application process.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-30/update-identity-validation-flexibilities-individuals-without-social-security-numbers-and-key-remaining-scope-2024-25-fafsa-cycle.
FSA Provides 2024-2025 FAFSA Updates on Paper Processing, Identity Validation, and Extension of Flexibilities
On July 30, 2024, Federal Student Aid (FSA) provided an update on batch institutional corrections and flexibilities and support for the 2024-2025 FAFSA cycle in an Electronic Announcement (GEN-24-96).
- The Department previously shared that batch institutional corrections via the Electronic Data Exchange (EDE) would be available by mid-August. Unfortunately, FSA states that batch corrections will be deferred until the 2025-2026 FAFSA cycle.
The decision is due to the delayed delivery timeline where institutions would not be able to utilize batch corrections before they begin their fall semesters. It is also due to prioritizing the development of the 2025-2026 FAFSA form.
- FSA knows that this decision creates additional burdens for institutions already experiencing a heavy workload. Therefore, FSA is announcing the availability of no-cost technical assistance to help institutions submit corrections via the FAFSA Partner Portal (FPP). School requests will be approved based on need, servicers’ capacity, and availability of funds.
If institutions whose request for support is approved, the institutions will need to complete and update their Application to Participate (E-App) and initiate access in their FTI-SAIG mailbox. More information will be provided later.
- The Department is also extending the following existing flexibilities:
- Extending suspensions on routine program reviews. The Department previously announced the suspension of all new program reviews through June 2024, except for those related to the most serious issues like suspected fraud or a severe breach of fiduciary duty. Institutions with an ongoing program review can also request extensions for responses to program reviews, reports, or requests for additional documentation. The announcement on July 30, 2024, extends the suspension of all new program reviews through September 2024.
- Providing additional flexibility on recertification. Institutions are currently required to routinely recertify eligibility for the Department’s federal student aid programs no later than 90 days before the Program Participation Agreement (PPA) expires. The Department previously announced that it would waive the 90-day requirement for schools whose PPA expires in March, June, or September 2024 giving institutions until their expiration day to submit a recertification application. ED is further waiving the 90-day requirement for schools whose PPA expires in December 2024.
- Extending the disbursement reporting timeline. Currently, institutions are required to report disbursements no later than 15 calendar days after the institution makes a disbursement. On May 10, 2024, the Department announced that institutions will not be required to report disbursements made for the 2024-2025 award year until 30 days after the date that school corrections become available, and on May 22, 2024, ED further clarified that this flexibility extends until 30 days after batch corrections functionality goes into effect. Given the deferral of batch corrections to the 2025-2026 FAFSA cycle, and that schools may need additional time to process institutional corrections in FPP, institutions will not be required to report disbursements made for the 2024-2025 award year until November 30th or 15 calendar days after the disbursement is made, whichever is later.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-30/update-batch-corrections-institutions-electronic-data-exchange-flexibilities-and-additional-support-2024-25-fafsa-cycle.
Department of Education Announces that Institutions May Provide Additional Information about Hate Crimes to their Campus Community
On July 29, 2024, the Department of Education issued a Dear Colleague Letter (GEN-24-09) announcing that institutions may provide additional information about hate crimes to members of their campus community in light of the heightened concerns about acts of hate on campuses. ED believes that “having accurate data enhances the ability of governments, campuses, and communities to effectively respond to acts of hate and ensure that all students are safe on campus.”
ED stated that institutions are reminded that they may voluntarily provide information about hate crimes to members of their campus communities beyond what the Clery Act requires to be reported. Sub-categories of persons and groups who were targeted based on actual or perceived membership in a covered bias category may be disclosed.
Disclosure of sub-categories for hate crimes is not required under the Clery Act. Therefore, the Department discourages institutions from using the formal statistical grids that are typically used to disclose crime statistics in its Annual Security Report (ASR) or in the Department’s annual Campus Safety and Security information collection. The Department, therefore, states that information may be presented in any format that clearly communicates the desired information to the campus community.
A copy of the DCL is found at: https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2024-07-29/voluntary-disclosure-hate-crime-sub-categories.
FSA Announces Availability of the 2024-2025 Federal School Code List of Participating Schools (August 2024)
On July 26, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (APP-24-07) announcing the availability of the updated 2024–25 Federal School Code (FSC) List of Participating Schools. The Federal School Code List contains the unique codes assigned by the Department of Education for schools participating in the Title IV federal student aid programs. Students enter these codes on the Free Application for Federal Student Aid (FAFSA® form) to indicate which postsecondary schools will receive the processed application results.
The Federal School Code List of Participating Schools is available electronically in PDF format and as a Microsoft Excel (XLS) file and is posted on a quarterly basis. The XLS file provides the most current FSC information available in a searchable format. There is also search functionality available on fafsa.gov.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-26/2024-25-federal-school-code-list-participating-schools-august-2024.
FSA Adds Additional FAQs for Financial Value Transparency and Gainful Employment
On July 23, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (GEN-24-90), which added additional Frequently Asked Questions for Financial Value Transparency and Gainful Employment requirements. On July 1, 2024, final regulations for Financial Value Transparency and Gainful Employment (FVT/GE) requirements went into effect. The FAQs will be updated periodically and will include the date of the update.
A link for the FAQs is found in the Electronic Announcement at:
Secretary Issues Statement on the 8th Circuit Court of Appeals’ Ruling on the SAVE Plan
On July 19, 2024, Secretary of Education Miguel Cardona released a statement about the 8th Circuit Court of Appeals’ ruling on the Saving on a Valuable Education (SAVE) Plan.
Secretary of Education said:
“Today’s ruling from the 8th Circuit blocking President Biden’s SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect. It is shameful that politically motivated lawsuits waged by Republican elected officials are once again standing in the way of lower payments for millions of borrowers.”
“Borrowers enrolled in the SAVE Plan will be placed in an interest-free forbearance while our Administration continues to vigorously defend the SAVE Plan in court. The Department will be providing regular updates to borrowers affected by these rulings in the coming days.”
A copy of the statement is found at: https://www.ed.gov/news/press-releases/statement-us-secretary-education-miguel-cardona-8th-circuit-court-appeals-ruling-biden-harris-administrations-saving-valuable-education-save-plan.
Biden-Harris Administration Approves Additional $1.2 Billion in Student Debt Relief
On July 18, 2024, the Biden-Harris Administration announced the approval of about $1.2 billion in additional student loan relief for 35,000 borrowers who work in public service. These approvals are the result of significant fixes that the Department has made to the Public Service Loan Forgiveness (PSLF) Program.
The Secretary said: “Once again, the Biden-Harris Administration delivers on its historic efforts to reduce the burden of student debt – making needed and long overdue improvements to the Public Service Loan Forgiveness (PSLF) Program.”
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harris-administration-approves-additional-12-billion-student-debt-relief-35000-public-service-workers.
Kvaal Posts Blog Giving an Update on Postsecondary Education Regulatory Work
On July 17, 2024, Under Secretary James Kvaal posted a blog providing an update on the Department of Education’s postsecondary education regulatory work. Under Secretary Kvaal said that in the winter and spring, the Department conducted negotiated rulemaking sessions to consider a range of important issues mostly centered around accountability. These included proposals around State authorization and accreditation, as well as issues related to textbooks, distance education, Return of Title IV funds (R2T4), and eligibility for Federal TRIO programs. He said that this week, the Department will publish a Notice of Proposed Rulemaking (NPRM) focused on the issues of distance education, R2T4, and Federal TRIO Programs. In addition to addressing eligibility for certain Federal TRIO programs, the NPRM will also propose improvements to how institutions report enrollment in distance education programs to get better data on the outcomes of students who attend these types of programs and to help the Department more accurately determine eligibility for closed school loan discharges. This package of proposed rules will also propose improvements to establish more consumer-friendly policies for students.
According to the blog, proposed regulations related to State authorization, including State authorization reciprocity agreements, cash management, and accreditation will be published by next year. This schedule will allow the Department to have additional time to consider these complicated issues.
In February 2023, the Department issued a Dear Colleague letter (GEN-23-03) to bring transparency into the third-party servicers who work closely with institutions of higher education on Title IV program management and delivery, particularly in the area of recruitment and marketing. After receiving more than 1,000 comments, in May 2023, the Department announced that it was delaying the guidance in GEN-23-03 and planning to develop revised guidance. Under Secretary Kvaal announced that instead, ED has decided to conduct negotiated rulemaking to consider regulations related to third-party servicers. The negotiated rulemaking process will allow the Department to collaborate with the affected community on the issues related to third-party servicers.
Finally, Under Secretary Kvaal said that in February 2023, the Department held listening sessions and sought public comments on the impact of Department guidance on how institutions may compensate their recruiters. ED is continuing to review the more than 250 comments to better understand the issues and ultimately issue revised guidance no sooner than late this year.
A copy of the blog is found at: https://blog.ed.gov/2024/07/update-on-department-of-educations-postsecondary-education-regulatory-work/.
Department of Education Releases Proposed Regulations to Increase College Access and Quality, and Strengthen Oversight of Distance Education
On July 24, 2024, the Department of Education released proposed regulations in the Federal Register that would increase college access for high school students, provide better public data on student outcomes, including to increase oversight over distance education programs, and ensure the student aid programs work in the best interests of students. The regulations propose changes in the federal TRIO programs, Distance Education, and Return to Title IV (R2T4). The 30-day comment period ends on August 23, 2024.
The Secretary said: “Under President Biden’s leadership, we continue our relentless push to make higher education more affordable and accessible to all Americans.”
The three areas addressed in the Notice of Proposed Regulations (NPRM) are proposed to make needed improvements:
- Increase Dreamers’ access to higher education through the federal TRIO programs, Upward Bound, Talent Search, and Educational Opportunity Center programs, which are designed to identify and provide services for individuals from disadvantaged backgrounds. The proposed rules would expand eligibility to include students without immigration status who are enrolled or seek to enroll in a high school in the United States.
- Account for student outcomes in evaluating student success and increase oversight over programs offered through distance education. The proposed rules include requiring additional reporting for programs offered entirely through distance education and students’ distance education status which would allow the Department to share and evaluate data and protect students through offering closed school discharges when an institution ends a program offered in-person or online. The proposed regulations also propose protections to make sure online students in career-focused programs get direct instructor interaction by prohibiting the use of asynchronous instruction.
- Help students who withdraw from paying any outstanding balances and increase accuracy and simplicity of calculations for institutions under R2T4. The proposed rules would help students who withdraw better pay down their balances so they may more easily return to their education and would streamline and simplify the calculation for institutions.
A copy of the press release, which includes the unofficial copy of the proposed regulations, is found at:
The published NPRM is found at:
Justice Department and Department of Education Announce Continuing Success of Student Loan Bankruptcy Discharge Process
On July 17, 2024, the Justice Department, in coordination with the Department of Education, announced the continued and growing success of a process instituted in November 2022 for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. Data collected over the last year and a half demonstrate that the process is providing a “more transparent, equitable, and streamlined mechanism for borrowers to request a discharge of their student loans in consumer bankruptcy cases. As a result, the process has led to increasing numbers of eligible federal student loan borrowers seeking and obtaining debt relief under the Bankruptcy Code.”
A copy of the press release is found at: https://www.ed.gov/news/press-releases/justice-department-and-department-education-announce-continuing-success-student-loan-bankruptcy-discharge-process.
FSA Announces NSLDS FVT/GE Completers List Now Available
On August 5, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GE-24-07) announcing that over the weekend of August 3-4, 2024, FSA sent the draft Financial Value Transparency and Gainful Employment (FVT/GE) Completers List to schools. The Department- calculates debt-to-earnings (D/E) and earnings premium (EP) measures using the debt and earnings of students who completed the program during a specified cohort period. Depending on the number of students who completed the program, the cohort period will either be two years or four years. The draft 2024 FVT/GE Completers List identifies all relevant students who completed a GE and Eligible Non-GE program during the two-year cohort (2017-2018, 2018-2019) or the four-year cohort (2015-2016, 2016-2017, 2017-2018, 2018-2019) for the 2022 earnings year.
Schools have a 60-day period to review and correct student information on the draft FVT/GE Completers List. The current 60-day period begins on August 8, 2024. and closed on October 7, 2024.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-08-05/draft-nslds-fvt/ge-completers-list-now-available-updated-aug-8-2024.
FSA Announces NSLDS FVT/GE Reporting Now Available
On July 1, 2024, and updated on July 17, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-06), which explains that schools may begin reporting Financial Value Transparency and Gainful Employment (FVT/GE) data to the National Student Loan System (NSLDS). Schools must report both program-specific and student-specific data no later than October 1, 2024.
For this initial reporting of student-specific data, schools must report on all students who have received Title IV funds for the program being reported for the most recently completed award year, and on students who received Title IV funds for the program being reported and who have graduated or withdrawn during the reporting period selected. With regard to the “reporting period,” schools have the option of using a standard (inclusive of the award years 2017-2018 through 2023-2024) or transitional (inclusive of the 2022-2023 and 2023-2024 award years) reporting period, but the same reporting period must be used for all programs.
The July 17, 2024, update addresses several questions from the community about how to access the FVT/GE Spreadsheet Submittal templates (student-specific and program-specific), which are one option for reporting FVT/GE data to NSLDS.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-01/nslds-fvt/ge-reporting-now-available-updated-july-17-2024.
FTC Announces that it Stopped Third-Party Debt Relief Company from Targeting Consumers in Puerto Rico
On July 22, 2024, the Federal Trade Commission (FTC) announced that it had stopped Florida-based Start Connecting LLC and Columbia-based Start Connecting SAS (collectively doing business as USA Student Debt Relief) from targeting Spanish-speaking consumers in Puerto Rico, pretending to be affiliated with the Department of Education and its loan servicers, and making false promises of low, permanently fixed monthly payments and loan forgiveness. At the request of the FTC, a federal court temporarily halted the scheme and froze the assets of the company. The FTC is seeking to end the unlawful practices and secure redress for the thousands of consumers who have been harmed.
A copy of the FTC press release is found at: https://www.ftc.gov/news-events/news/press-releases/2024/07/ftc-acts-stop-debt-relief-scheme-targeting-spanish-speaking-student-loan-borrowers.
U.S. Court of Appeals for the Eighth Circuit Issues an Injunction Preventing the Department of Education from Implementing Parts of SAVE Plan
On August 9, 2024, a three-judge panel from the U.S. Court of Appeals for the Eight Circuit issued an injunction preventing the Department of Education from carrying out parts of its new income-driven repayment plan, known as the Saving on a Valuable Education (SAVE) plan. The injunction will remain in effect “until further order of this court or the Supreme Court of the United States.” The order replaces an administrative stay issued last month as part of a lawsuit from seven Republican-led states challenging the SAVE plan. The Biden Administration intends to appeal the order. The states argued that the SAVE plan exceeds the Department’s authority and amounts to another version of a debt relief plan that the Supreme Court struck down last summer.
Supreme Court Expands GI Bill Usage
It was recently reported that on April 16, 2024, the Supreme Court ruled before recessing that veterans are allowed to use both the Post-9/11 GI Bill and Montgomery GI Bill to pay for college if they meet the eligibility requirements for each. The 7-2 ruling overturns the previous policy of the Department of Veterans Affairs (VA), which required veterans to choose one program and forfeit the other.
The ruling results from a case involving Jim Rudisill, an Army veteran who served for eight years and attempted to use both programs. After reaching the 36-month limit under the Post-9/11 GI Bill, he was denied benefits from the Montgomery GI Bill by the VA. He sued and the Supreme Court sided with Mr. Rudisill, highlighting that he was entitled to an additional 12 months of benefits.
ED’s Office of Civil Rights Issues Notice of Title IX Final Rule that Goes into Effect as of August 1, 2024; ED Identifies States and Schools Where Title IX Final Rule Cannot be Enforced
The Department of Education’s Office of Civil Rights (OCR) issued a notice that provided an overview of the status of Title IX of the Education Amendments, titled, “Sex Discrimination: Overview of the Law.” Included in the notice was a reminder from OCR that the Title IX Final Rule, codified in April 2024, went into effect on August 1, 2024. According to the notice, “The April 2024 final regulations advance Title IX’s promise of ensuring that no person experiences sex discrimination, as well as accountability and fairness, while empowering and supporting students and families.”
However, the notice also stated that as of July 31, 2024, pursuant to Federal court orders, the Department is currently enjoined from enforcing the 2024 Final Rule in the following states: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. For these states, the Title IX Final Rule as amended in 2020 remains in effect. In addition, the Department is also currently enjoined from enforcing the 2024 Final Rule at specific schools, which are listed at: https://www2.ed.gov/about/offices/list/ocr/docs/list-of-schools-enjoined-from-2024-t9-rule.pdf. The notice states that the list may be amended in the future.
For colleges and universities in states where the 2024 Title IX Final Rule is in effect, the notice provides additional resources to assist institutions in implementing the Title IX Final Rule.
A copy of the OCR notice is found at:
https://www2.ed.gov/policy/rights/guid/ocr/sexoverview.html.
ED Inspector General Finds Department did not Effectively Implement the FUTURE Act and the FAFSA Simplification Act
On July 31, 2024, the Department of Education’s Office of Inspector General (OIG) released a report titled, “FSA’s Implementation of the FUTURE Act and FAFSA Simplification Act’s Federal Taxpayer Information Provisions through the Student Aid and Borrower Reform Initiative.” (ED-OIG/A23GAO122) The OIG found that Federal Student Aid (FSA) did not effectively implement the FUTURE Act and the provisions pertaining to Federal Taxpayer Information (FTI) provisions. This was the second review of the OIG on FSA’s FAFSA planning and implementation but will likely not be the last review.
To use and receive tax information from the Internal Revenue Service (IRS), the Department had to develop or change several systems. The OIG found that FSA did not have processes in place to monitor project costs and budgets or to oversee the contractors who were working on the project. The Department also failed to evaluate risks, decisions, and issues pertaining to the systems’ implementation. The OIG concluded that not performing the key steps in the processes increased the risk of project cost overruns and increased risks of contractors not providing deliverables timely or being paid for deliverables that were never produced. Consequently, the OIG found that FSA employees could not determine who was responsible for tracking the project’s deliverables and ensuring the contract-monitoring steps and processes were in place.
A copy of the report is found at: https://oig.ed.gov/reports/audit/fsas-implementation-future-act-and-fafsa-simplification-acts-federal-taxpayer.
U.S. Court of Appeals for the Eighth Circuit Issues an Injunction Preventing the Department of Education from Implementing Parts of SAVE Plan
On August 9, 2024, a three-judge panel from the U.S. Court of Appeals for the Eight Circuit issued a decision in State of Missouri v. Joe Biden granting an injunction blocking the Department of Education from carrying out parts of its new income-driven repayment plan, known as the Saving on a Valuable Education (SAVE) plan. The injunction will remain in effect “until further order of this court or the Supreme Court of the United States.” The order replaces an administrative stay issued last month as part of a lawsuit from seven Republican-led states challenging the SAVE plan. The Biden Administration intends to appeal the order. The states argued that the SAVE plan exceeds the Department’s authority, and the SAVE plan amounts to another version of a debt relief plan that the Supreme Court struck down last summer.
U.S. Circuit Court of Appeals Denys Motion to Block Enforcement of Title IX Rule
On July 31, 2024, the 11th Circuit Court of Appeals granted the states of Alabama, Florida, Georgia, and South Carolina an administrative injunction against the Biden Administration’s Title IX rule after an Alabama federal judge, Judge Annemarie Carney Axon, from the Northern District of Alabama, denied an effort made on July 30, 2024, from the four Southern states to immediately block the Biden administration’s new Title IX rule from taking effect. Judge Axon said that the states failed to show that they would be successful in their legal challenge.
Federal Judge Blocks New Title IX Rule in Oklahoma
On July 31, 2024, Federal Judge Jodi Dishman from the Western District of Oklahoma ruled that the Department of Education cannot enforce the new Title IX rule in Oklahoma. Judge Dishman granted a preliminary injunction, finding that the state was likely to succeed on the merits of its case based on “Title IX’s unambiguous and clear text.
Biden Administration Asks Supreme Court for Partial Relief from Title IX Injunction
On July 24, 2024, “Inside HigherEd” reported that the Biden administration asked the Supreme Court to partially lift a district court’s injunction that is preventing the Department of Education from enforcing its new Title IX rule in six states. Solicitor General Elizabeth Prelogar argued in a brief that the district judge erred by blocking the entire rule from taking effect in Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia when only some provisions were challenged in the states’ lawsuit. The Biden administration appealed to the U.S. Court of Appeals of the Sixth Circuit, which declined to lift the temporary injunction.
Federal Judge Temporarily Blocks the Implementation of the Final Title IX Rule in Arkansas, Iowa, Missouri, North Dakota, Nebraska, and South Dakota
On July 26, 2024, Federal Judge Rodney Sippel of the Eastern District of Missouri blocked the implementation of the Title IX final rule because he found that the states of Arkansas, Iowa, Missouri, North Dakota, Nebraska, and South Dakota had a fair chance of prevailing on their arguments that the new Title IX rule exceed the Department of Education’s authority and violate the First Amendment. Following Judge Sippel’s ruling, the Title IX rule is now temporarily blocked in 26 states along with hundreds of colleges nationwide.
Federal Judge Temporarily Blocks the Implementation of the Final Title IX Final Rule in Texas
On July 15, 2024, U.S. District Judge for the Northern District of Texas Matthew Kacsmaryk blocked the Biden administration from enforcing the new Title IX Final Rule in Texas. “The Final Rule inverts the text, history, and tradition of Title IX.” Judge Kacsmaryk also said, “[t]he statute protects women in spaces historically reserved to men; the Final Rule inserts men into spaces reserved to women.”
Federal Judge Temporarily Blocks the Implementation of the Final Title IX Rule in Alaska, Kansas, Utah, and Wyoming as well as Hundreds of Colleges
On July 2, 2024, U.S. District Court for the District of Kansas Judge John Broomes blocked the Biden Administration from enforcing the new Title IX Rule in Alaska, Kansas, Utah, and Wyoming as well as any school or college attended by members of the conservative organizations Young America’s Foundation, Female Athletes United and Moms for Liberty. Over 670 colleges and universities across 50 states and territories were affected by the order. The 47-page opinion specified that the Department of Education lacked the authority to expand prohibited sex-based discrimination under Title IX to include discrimination based on gender identity. Judge Broomes noted in his order that colleges can adopt new policies, but the Department of Education cannot enforce the new Title IX rule.
Federal Judge Temporarily Blocks the Implementation of the Final Title IX Rule in Louisiana, Mississippi, Montana, and Idaho
On June 13, 2024, U.S. District Court for the Western District of Louisiana Chief Judge Terry Doughty said that Title IX “was written and intended to protect biological women from discrimination.” He did not agree that “discrimination on the basis of sex” includes “gender identity, sex stereotypes, sexual orientation, or sex characteristics.” The Judge was also reported to have said that the case “demonstrates the abuse of power by executive federal agencies in the rulemaking process.”
Judge Doughty issued an order that temporarily blocked the implementation of the Department’s Title IX rule from taking effect in Louisiana, Mississippi, Montana, and Idaho on August 1, 2024. Six other lawsuits are being pursued by other Republican attorneys general. Several states, including Louisiana, Montana, Florida, South Carolina, and Oklahoma, were reported to have said they will not comply with the Title IX rule.
NASFAA, NCAN, and Other Groups Send Letter to Secretary Cardona Urging Full-Operability for the 2025-2026 FAFSA by December 1st
On July 23, 2024, the National Association of Student Financial Aid Administrators (NASFAA), National College Access Network (NCAN), National Association of College Admissions Counseling, National Association of State Student Grant and Aid Programs, and State Higher Education Executive Officers Association sent a letter to Secretary of Education Miguel Cardona asking him to ensure the 2025-2026 FAFSA is fully operational by December 1, 2024. The groups said that there is no path for the Department to meet the October 1st deadline and that additional testing must be done to avoid challenges with the 2024-2025 FAFSA form.
A copy of the letter is found at: