President-Elect Trump Names Former SBA Administrator as Nominee for Secretary of Education
On November 19, 2024, President-Elect Donald Trump named former Small Business Administration Administrator Linda McMahon as his nominee for Secretary of Education. Ms. McMahon co-founded, with her husband, Vince McMahon, World Wrestling Entertainment (WWE). She stepped down as the Chief Executive Officer of the WWE in 2009. She was appointed to the Connecticut State Board of Education by former Governor Jodi Rell, although she resigned a year later when she made a failed run for the U.S. Senate. She also served as a member of the Board of Trustees for Sacred Heart University. Ms. McMahon currently serves as Chair of the America First Policy Institute, which advocates for school choice. President-Elect Trump said in his announcement that she was a fierce advocate for Parents’ Rights. “As Secretary of Education, Linda will fight tirelessly to expand ‘Choice’ to every State in America, and empower parents to make the best Education decisions for their families.” She graduated from East Carolina University.
With regard to higher education, Ms. McMahon believes higher education is not meeting the needs of employers seeking skilled workers and has advocated for increasing access to career and technical education. She has been critical of college degree requirements for jobs and has said “reversing degree inflation is good for workers and good for businesses.” She is a strong proponent of expanding Pell Grants to short-term workforce training programs and has expressed an interest in ensuring higher education and the workforce are more aligned.
House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) said: “She should be committed to the wellbeing and success of students, and clear-eyed about what is needed to empower them. Linda McMahon fits the bill to a T. She’s a fighter who will work tirelessly in service of the students – not the so-called elite institutions, or the teachers’ unions or the federal bureaucracy. I am thrilled to congratulate my fellow North Carolinian and my friend on her nomination and look forward to seeing all that she accomplishes.”
A copy of Chairwoman Foxx’s press release is found at:
https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=412049.
Congressman Tim Walberg (R-MI), who replaced Congresswoman Foxx as Committee Chair, said: “Together, we will overhaul the Department of Education to better serve students and uphold the rights of parents. Our educational institutions must be better connected with real-world jobs and in-demand fields. This is something Linda understands.”
A copy of Congressman Walberg’s press release is found at:
https://iqconnect.house.gov/iqextranet/view_newsletter.aspx?id=108119&c=MI07TW.
Ranking Member of the Senate Health, Education, Labor, and Pensions Committee Bill Cassidy, MD (R-LA) said: “I agree with President Trump’s statement that we need someone who is going to focus on parental choice in children’s education…Linda McMahon’s experience running the Small Business Administration can obviously help in running another agency. I look forward to meeting with her.”
A copy of Senator Cassidy’s press release is found at:
House Education and the Workforce Committee Ranking Member Bobby Scott (D-VA) released a statement saying that the Secretary of Education has the enormous responsibility of ensuring all students have the opportunity to access a high-quality education that leads to a rewarding career. “Ms. McMahon does not have a long history of work in education, so I will wait to pass judgment on her nomination until she has been fully vetted by the Senate.”
A copy of Ranking Member Scott’s press release is found at:
House and Senate Democrats Ask Secretary of Education to Cancel Federal Student Loan Debt for Borrowers Who Attended Predatory For-Profit Colleges
On December 4, 2024, House and Senate Democrats sent a letter to Secretary of Education Miguel Cardona asking him to immediately discharge the federal student loans of borrowers who attended predatory for-profit colleges. The letter said that ED “must immediately discharge the student loans for the hundreds of thousands of students who the Department has already committed to providing borrower defense debt relief.” Since 2022, ED has announced group discharges for more than 1.2 million individuals who attended schools that engaged in documented fraud and misconduct.” However, according to the court filings, hundreds of thousands of these borrowers still await relief, including more than 25 percent of Corinthian Colleges’ borrowers who await debt relief.
The letter demands that ED “must use its authority under the Higher Education Act to issue group discharges for the millions of borrowers who attended other institutions with documented histories of predatory practices.” The specific institutions are listed in the appendix to the letter. The letter indicates that “[d]efrauded students should not be left holding the bag for institutions that no longer exist.”
Finally, the letter demands that ED process any remaining applications for borrower defense discharge. “These borrowers completed an onerous application to demonstrate that they were victims of fraud, but the Department has yet to act.”
A copy of a press release, which includes the text of the letter, is found at:
President Signs the FAFSA Deadline Act into Law
On December 11, 2024, President Joe Biden signed into law the FAFSA Deadline Act (H.R. 8932), a bipartisan bill that would make October 1st the official launch date for the FAFSA each year. On November 20, 2024, the Senate passed H.R. 8932, by unanimous consent. On November 15, 2024, the House of Representatives passed H.R. 8932, by a 381-1 vote. While the FAFSA has generally been released on October 1, the 2024-2025 was released in late December 2024, and the 2025-2026 FAFSA was made available to all students on November 21, 2024.
On December 11, 2024, Ranking Member of the Senate Health, Education, Labor, and Pensions Committee Bill Cassidy, MD (R-LA) released a press release saying: “The Biden-Harris FAFSA delays forced students to choose their college without knowing their financial status or not attend college at all because they didn’t know if they could afford it. Students should not have to suffer because of bureaucratic incompetence.”
A copy of Senator Cassidy’s press release is found:
On December 11, 2024, Ranking Member of the House Committee on Education and the Workforce released a press release saying: “By setting the firm FAFSA release date, the FAFSA Deadline Act gives students and families more time to complete their applications and secure the financial support they need to attend college without unnecessary delays.”
A copy of the press release is found at: https://democrats-edworkforce.house.gov/media/press-releases/ranking-member-scott-applauds-signing-of-fafsa-deadline-act-into-law.
Senator Sanders Announces He Will Serve as Ranking Member of Senate HELP Committee
On November 22, 2024, Senate Health, Education, Labor, and Pensions (HELP) Committee Chairman Bernie Sanders announced that he will serve as the Committee’s Ranking Member in the 119th Congress. Senator Sanders said: “I am proud of what we have accomplished during my time as Chairman of the Senate Committee on Health, Education, Labor, and Pensions.” He went on to say: “Over the last two years, we have made progress in reducing the outrageous cost of prescription drugs, standing up for workers’ rights and the trade union movement, expanding primary health care, and protecting public education. In the next Congress, I look forward to serving as the Ranking Member on HELP and continuing to fight for a health care system that guarantees that every American can see a doctor, an education system that is affordable to all, and a country in which all seniors can retire with dignity.”
A copy of the Senator’s press release is found at:
Senate Republicans Name Bill Cassidy to Serve as then Next Chair of the Senate HELP Committee
On November 14, 2024, Senate Republicans named Senator Bill Cassidy, MD (R-LA) to serve as the next Chair of the Senate Health, Education, Labor, and Pensions Committee when the Republicans take the majority in January. Currently, Senator Cassidy is serving as the Ranking Member of the HELP Committee. Senator Cassidy said: “I am excited to work closely with President Trump and my Republican colleagues to implement a Pro-America agenda and deliver real solutions for Louisiana and American families.” The press release went on to state: “As chair, Cassidy will establish the agenda of the HELP Committee in the 119th Congress. As ranking member of the HELP Committee during the 118th Congress, Cassidy led Senate Republicans in opposing the harmful Biden-Harris agenda and promoting policies that help American families.”
A copy of the Senator’s press release is found at:
https://www.help.senate.gov/ranking/newsroom/press/cassidy-to-chair-help-committee-in-119th-congress.
Department of Education Holds FSA Training Conference
On December 3-5, 2024, the Department of Education’s Office of Federal Student Aid (FSA) held its “2024 Virtual Federal Student Aid Training Conference for Financial Aid Professionals.” On December 3, 2024, FSA Chief Operating Officer Denise Carter gave opening remarks where she thanked the financial aid community for their dedication and efforts to work with FSA on the challenges involving the 2024-2025 FAFSA. She said that FSA learned a great deal over the last year from students and families, counselors, mentors, and community-based organizations and the input has been vital to the rollout of the 2025-2026 FAFSA and the success of the new Beta testing. She noted that as of December 3, 2024, more than 800,000 FAFSA forms have been submitted and the majority have been processed and sent to institutions across the country. Ms. Carter said that FSA also returned more than 28 million borrowers to repayment following the payment pause that lasted more than three and a half years. This unprecedented effort required FSA to do extensive outreach to borrowers to help them understand their options for affordable repayment, including an on-ramp that helped borrowers transition to repayment. Finally, FSA also brought online the new loan servicing environment, the Unified Servicing and Data Solution, which is helping improve the borrower experience for millions of federal student loan borrowers.
On December 4, 2024, Secretary of Education Miguel Cardona gave keynote remarks where he thanked the financial aid community for their dedication and partnership in keeping students applying for college despite the challenges with the 2024-2025 FAFSA. He said that because of the hard work of the FSA team, the 2025-2026 FAFSA is live and more students are receiving financial aid and more students are receiving Pell Grants. Secretary Cardona stated that partisan lawsuits stalled progress on the Department’s SAVE repayment plan, which proposes to make repayment more affordable than ever before and putting college within reach for more borrowers. The Secretary concluded his remarks by stating that colleges and universities remain one of America’s most powerful engines for economic mobility and prosperity.
On December 5, 2024, Under Secretary James Kvaal also gave keynote remarks where he said there was big change in Washington, DC, but it is important to remember what is most important – “the students that we serve.” He thanked the financial aid community who faced confused and frustrated students even as they logged extra hours to get financial aid out the door. He said that they fixed the broken federal student loan system, increased Pell Grants by $900, and pushed momentum om free college. He said that the Department approved $175 billion in loan forgiveness for nearly 5 million borrowers for borrowers with permanent disabilities and borrowers trapped in income driven repayment plans. Mr. Kvaal concluded his remarks by saying that in times of uncertainty, positive change is possible.
ED Officially Releases 2025-2026 FAFSA
On November 21, 2024, the Department of Education announced the official release of the 2025-2026 FAFSA. The Department said that the online FAFSA form is available to all students and families at fafsa.gov, and the Department is processing submissions and sending them to schools. The paper FAFSA form is also available for students to submit. ED said that over the last several months, it has incorporated feedback from students, parents, schools, community-based organizations, and other partners into the FAFSA process and comprehensively tested the FAFSA form, system, and user supports at scale through a rigorous beta testing period.
ED said that it significantly increased staffing at the Federal Student Aid Information Center by having added more than 700 agents since January and an additional 225 agents over the next few weeks for ongoing surge support. In anticipation of high demand as part of the official release of the FAFSA form, ED added extended FAFSA-only weeknight and Saturday contact credit hours.
A copy of the announcement is found at: https://www.ed.gov/about/news/press-release/us-department-of-education-announces-official-release-of-2025-26-fafsa-form.
FSA Issues Reminder Regarding Documentation and Reporting Requirements for the Change in Ownership Process
On November 21, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-24-136) reminding institutions of the documentation and reporting requirements for eligible institutions undergoing a change in ownership (CIO). Included in the Electronic Announcement were descriptions for the following:
- Specific documentation requirements to support a materially complete application;
- Specific requirements for the audited financial statements;
- Specific requirements for the evaluation of acquisition debt related to a CIO;
- Specific conditions for the extension of the TPPPA;
- Specific requirements for the same-day balance sheet (SDBS);
- Specific information needed for state approval of a CIO; and
- Specific information needed for accreditor approval of a CIO.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-11-21/change-ownership-documentation-reporting-and-requirements.
ED Releases 2025-2026 College Financing Plan
On November 15, 2024, the Department of Education issued an Electronic Announcement announcing the publication of the 2025-2026 College Financing Plan on the Office of Postsecondary Education’s website. The College Financing Plan (CFP) is a consumer tool that participating institutions use to notify students about their financial aid package and is a standardized form designed to simplify the information that prospective students receive about costs and financial aid so they can easily compare institutions and make informed decisions.
The CFP form is updated annually. One of the Q&As included in the CFP FAQs was a description of the requirement for the use of the CFP form in accordance with the Principles of Excellence:
“Institutions that have agreed to comply with the Principles of Excellence (POE) in Executive Order 13607 (EO 13607): Institutions are expected to use the College Financing Plan to provide the required personalized and standardized form with financial aid information for undergraduate and graduate service members, veterans, military spouses, and other military family members covered by EO 13607. The College Financing Plan should be provided to prospective students who are eligible to receive Federal military and veterans’ educational benefits. It must be provided to those respective students who have applied for Title IV aid using the Free Application for Federal Student Aid (FAFSA). This means that students should receive the College Financing Plan prior to enrollment. Many institutions that have agreed to comply with EO 13607 have also indicated to the Department that they intend to provide the College Financing Plan to all of their students, in addition to those receiving veterans’ benefits. For all other institutions that adopt the College Financing Plan: Institutions are expected to provide the College Financing Plan to all undergraduate and graduate students.”
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-11-15/2025-2026-college-financing-plan-now-available.
ED Releases Interim Final Rule Extending Deadline for Enrollment in ICR and PAYE Repayment Plans
On November 15, 2024, the Department of Education issued an Interim Final Rule published in the Federal Register, amending the regulations governing the income contingent repayment (ICR) plans available to federal student loan borrowers, which was made available in a November 18, 2024, Electronic Announcement. The final rule revises the end date for most borrowers to enroll in ICR or Pay as You Earn (PAYE) plans from July 1, 2024, to July 1, 2027. The Department’s notice states that this time-limited change to eligibility restrictions that went into effect on July 1, 2024, will allow ED to meet its statutory obligations to offer borrowers access to an ICR option, which is currently not available. The change in the deadline addresses the current lack of an available ICR option after the rollout of the new SAVE plan, a replacement for REPAYE, PAYE, and ICR replacement plans, which was temporarily blocked due to ongoing litigation. With this Interim Final Rule, borrowers will still be able to apply for the SAVE plan and now may apply for the original ICR and PAYE repayment options, which had been sunsetted in the blocked SAVE rules, in addition to the Income-Based Repayment (IBR) plan and standard repayment plans, which remained unaffected by litigation.
ED also indicated in the Interim Final Rule that it is working to offer borrowers a version of the SAVE repayment plan that is compliant with the court’s injunction. This would permit ED to resume collecting payments under the SAVE plan, although ED does not expect its work to be completed until well into 2025.
A copy of the Electronic Announcement, which includes the Interim Final Rule, is found at:
FSA Issues Reminder of Institutional Requirements for FVT/GE by January 15, 2025
On November 13, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (GE-24-10) reminding institutions of two important requirements related to the Financial Value Transparency/Gainful Employment (FVT/GE) regulations. The requirements include the evaluation of the Completers Lists, which includes graduates who received Title IV aid, and the submission of the required reporting data via NSLDS, which includes enrolled, graduated, and withdrawn students who received Title IV aid. Both of these activities must now be completed by January 15, 2025.
FTC Takes Action Against Superior Servicing for Impersonating Department of Education and Promising False Benefits to Student Loan Borrowers
On December 9, 2024, the Federal Trade Commission (FTC) announced that it has stopped Nevada-based Superior Servicing and its operator Dennise Merdjanian from making telemarketing calls and sending personalized mailers to borrowers falsely claiming that consumers enrolled in their program could obtain benefits, such as loan consolidation, reduced interest rates on their student loans, reduced monthly student loan payments, or loan forgiveness. The operators collected illegal advance fees of up to $899 as an initial payment followed by monthly payments that defendants falsely represented were going towards consumers’ student loan debt. To convince borrowers that their claims were legitimate, the operators pretended to “work with” or be “affiliated” with the U.S. Department of Education or its approved loan servicers. Contrary to Superior Servicing’s false promises, borrowers have reported that they never received loan consolidation, lowered payments, or loan forgiveness. The FTC noted that at most, and if anything at all, the defendants filled out simple applications for debt relief that are available for free from the Department.
A copy of the press release is found at: https://www.ftc.gov/news-events/news/press-releases/2024/12/ftc-acts-stop-scheme-bilked-millions-out-student-loan-borrowers.
CFPB Announces Action Against Climb Credit Requiring Company to Stop Making Representations in Advertising About Training Programs
On December 5, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it was taking action against Climb Credit and its investors, including 1/0 (“One Zero”), by filing a proposed order that will require the companies to stop making representations in their advertising about the quality of the training programs at their partner schools and graduates’ hiring rates and salaries. CFPB sued Climb Credit for offering loans for educational programs that often were not vetted for quality and job placement success or that failed the vetting. If entered, the order will require the defendants to stop making certain representations about their educational offerings in their advertising and pay a $950,000 civil money penalty into the CFPB’s Victims Relief Fund.
A copy of the press release is found at:
CFPB Announces Action to Permanently Ban Student Loan Pro
On December 4, 2024, the Consumer Financial Protection Bureau (CFPB) announced action it was taken to permanently ban Student Loan Pro and its owners, Judith Noh, from offering or providing consumer financial products. In the complaint, the CFPB alleges that Student Loan Pro and Noh violated federal law by charging borrowers upfront fees to file paperwork on their behalf to access free debt-relief programs available to consumers with federal student loans.
A copy of the CFPB’s press release is found at: https://www.consumerfinance.gov/about-us/newsroom/cfpb-bans-student-loan-pro-and-owner-for-fee-harvesting-scheme/.