As part of the Office of Government Relations’ (OGR) ongoing series tracking federal policy areas of interest to the Duke community, here is an update on the latest federal actions impacting Duke regarding student aidpolicy.

Legislative Activity: How the Reconciliation Bill Impacts Student Aid

Recent student aid legislation from the One Big Beautiful Bill (OBBB) Act signed into law on July 4, proposes significant structural changes to federal loan and grant programs. The Department of Education has been working this fall to begin its rulemaking and implementation of many key provisions. We covered more details on what is in the bill when it passed this summer. As a reminder, those changes include:

Student Loans:

  • Eliminating Grad PLUS Loans.
  • Capping lifetime federal loans at:
    • $100,000 for graduate students ($20,500 annually);
    • $200,000 for professional students ($50,000 annually);
    • $65,000 for Parent PLUS loans.

Pell Grants:

Pell eligibility would be revoked for students receiving non–Title IV external aid equal to or exceeding their cost of attendance. The bill also expands Pell Grant eligibility to include short-term, accredited training programs. Starting July 1, 2026, programs lasting between 150 and 599 clock hours—typically 8 to 15 weeks—will qualify for the new Workforce Pell Grants. Previously, Pell Grants were available only for programs of at least 600 hours taken over at least 15 weeks.

Negotiated Rulemaking

This month, the Department of Education’s Reimagining and Improving Student Education (RISE) committee reached consensus on a full package of regulatory proposals related to student aid provisions in the One Big Beautiful Bill Act (OBBBA). A central focus of the discussions was how the department defines “professional student” and “professional degree,” as those definitions determine which students qualify for higher federal loan limits. Our coverage of the committee’s consensus can be found here.

Because negotiators reached consensus, the department is now required to publish the agreed-upon language for public comment through a Notice of Proposed Rulemaking, which officials indicated could be released early next year, though the timing may shift.

A second rulemaking committee– the Accountability in Higher Education and Access through Demand (AHEAD) committee—is expected to meet later this winter to address additional issues around implementation of the OBBBA, this time related to institutional and program accountability, the Pell Grant program and other changes to Title IV programs.

FAFSA

In FAFSA news, the Department of Education announced the 2026-2027 FAFSA ahead of schedule, as it went live on October 1. The new FAFSA changes include the exclusion of family-owned businesses, farms, and commercial fishing operations from aid eligibility calculations (as enacted by OBBB).

Federal Work-Study

The Department also issued new guidance clarifying that Federal Work-Study funds may not be used for any partisan or nonpartisan political activity. This reverses Biden-era guidance that had allowed limited voter engagement work. The Department encouraged institutions to align positions with students’ academic programs to enhance educational relevance.

College Cost and Value Transparency

Congress has been paying close attention to this issue area, holding a hearing earlier this fall to gather testimony from higher education experts, informing Congress on how it can address affordability concerns and provide clarity on college pricing. It held another hearing on the same subject in mid-November.

NAICU and 23 state associations recently submitted comments to the Senate HELP Committee on the Department’s proposed Admissions and Consumer Transparency Supplement for the Integrated Postsecondary Education Data System (IPEDS). The proposal would require institutions to report detailed admissions data—such as test scores, GPA, and income—dating back to 2020, starting with the 2025–26 application cycle. Concerns have been raised about administrative burden, privacy risks, and data comparability, especially for smaller institutions. The Department has indicated that it will continue discussions on how to best balance transparency with reporting feasibility.

Recent Education Department News

Looking ahead, the Department of Education has also signed six interagency agreements to shift a number of higher education programs to other federal agencies. Under the plan, the Labor Department would manage most higher education grant programs, including TRIO, institutional-capacity funding for HBCUs and minority-serving institutions and other student-support initiatives. Fulbright-Hays and International and Foreign Language Education programs would move to the State Department, and Indian Education and tribal college programs would transition to the Interior Department.

Available information indicates that the Federal Student Aid Office and the Office of Civil Rights are not included in these transfers. Under the proposed plans, the Department will also retain authority over budgets and program criteria. More details are expected as the transition process unfolds, and Congress will have the opportunity to weigh in through upcoming hearings and appropriations bills. OGR will continue monitoring developments that may affect institutions and students.

As always, the OGR will monitor federal policy action and provide updates as necessary.