Trump Administration Kicks Off Neg Reg With First Day of Public Hearings
By Maria Carrasco, NASFAA Staff Reporter
The Department of Education (ED) on Tuesday hosted its first day of public hearings as part of the negotiated rulemaking (neg reg) process, where stakeholders gathered in person to give their comments regarding several Title IV programs, including Public Service Loan Forgiveness (PSLF), Pay As You Earn (PAYE), and Income Contingent Repayment (ICR) programs.
ED announced earlier this month its intent to establish negotiated rulemaking committees that will touch on regulations that would “streamline current federal student financial assistance programs,” specifically noting the PSLF, PAYE, and ICR programs as potential topics.
Acting Under Secretary James Bergeron gave more details on what type of comments and feedback ED is soliciting during the in-person hearing on Tuesday, including several regulatory proposals to align federal student aid programs with the Trump administration's priorities.
“Today's higher education system has become overregulated and a little unfocused,” Bergeron said. “At the heart of these problems [is] federal regulations, red tape, that forces institutions to take on large administrative and personnel costs and therefore hike their tuition. … Colleges and universities are forced to prioritize compliance with government regulations over serving students, and that's why you're here today as stakeholders who care about students and institutions — to make your voices heard through the public comment period and tell us about your experiences dealing with these regulatory burdens.”
Specifically, Bergeron mentioned President Donald Trump’s executive order directing the department to make changes to the PSLF program and rescind eligibility from organizations engaged in “illegal activities.” Therefore, ED is seeking feedback on how to best amend the definition of a qualifying employer to receive PSLF, and how ED can exclude employers that engage in a “substantial illegal purpose,” he said.
Additionally, Bergeron said ED is soliciting feedback on clarifying language on repayment plans impacted by recent lawsuits regarding the Saving on a Valuable Education (SAVE) program. While ICR and PAYE weren’t the subjects of these lawsuits, ED is soliciting feedback on further ideas for “better aligning” ICR and PAYE with requirements of the law.
ED is also seeking ways to streamline federal regulations, to “foster innovation,” and reduce college costs “while maintaining institutional integrity and quality,” Bergeron said.
“We welcome ideas from all stakeholders on how best to improve your experience or how to better improve program management,” Bergeron said. “For example, borrowers, what changes can we make to repayment plans that impact you financially? How do they shape your decisions after graduating from college? … Financial aid administrators, are there any improvements that we can make to rules around financial responsibility or change in ownership, to simplify the process?”
NASFAA was at the public hearing on Tuesday and gave comments regarding several topics, including PSLF. Jill Desjean, NASFAA’s director of policy analysis, said that while NASFAA agrees that organizations proven by the courts to have violated the law should not be PSLF qualifying employers, if an organization did violate the law, their nonprofit status should be formally revoked through long-established procedures that allow for due process.
“Relying on negotiators to identify illegal activity without legal finding is not only an ineffective approach that is dangerously subjective, but risks empowering negotiators to target organizations based on disagreements with their mission or services, rather than on objective, proven legal decisions,” Desjean said.
In terms of the ICR and PAYE programs, Desjean stressed that a strong safety net is essential for student loan borrowers who take their obligation to repay their loans seriously, but cannot afford to do so on the standard repayment schedule.
“Any valuable IDR plan moving forward must incorporate the foundational elements of affordable monthly payments and protection from a lifetime of debt,” Desjean said.
NASFAA supports ED’s goal of streamlining the Title IV regulations to reduce administrative burden, Desjean said. She highlighted three areas where these efforts would be most impactful, including gainful employment (GE) and financial value transparency (FVT), Return of Title IV Funds (R2T4), and licensure requirements.
NASFAA will also be submitting more detailed written comments to ED regarding these topics.
Current students, higher education policy experts, and various professionals currently pursuing PSLF or other income-based repayment programs spoke throughout the morning. Each shared personal stories, represented various groups who have directly benefited from federal financial aid, and provided insight into how institutions of higher education were looking to share their expertise with the rulemaking committee.
During the comment period, ED’s deputy assistant secretary, Jeffrey Andrade, told participants that the negotiated rulemaking process does not implement any budget cuts to student financial aid.
In response to some comments, Andrade went on to stress that the rulemaking session cannot eliminate the PSLF program since doing so would require legislation.
However, some commentators pushed back on Andrade’s claims and argued that an effort to rework the eligibility requirements for programs like PSLF and IDR could dramatically reduce aid to students.
Tuesday’s public hearing ended early in the afternoon. ED will be back on Thursday for the second day of public hearings, which will be held virtually. Those interested in watching the livestream can register online. Stay tuned to Today’s News for more updates on the neg reg process.
Publication Date: 4/30/2025
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