By Maria Carrasco, NASFAA Staff Reporter
The Department of Education (ED) on Thursday provided an update on several pressing topics concerning the federal student aid programs, including ED’s upcoming negotiated rulemaking (neg reg), the 2026-27 FAFSA, recent policy guidance on verification, gainful employment (GE) and financial value transparency (FVT), and more.
This general session was part of NASFAA’s 2025 National Conference. It was led by Tamy Abernathy, director of ED’s Office of Postsecondary Education policy coordination group, and David Musser, ED’s acting director of the Policy Implementation Division. Abernathy and Musser presented attendees with new information and overviews of several processes.
Upcoming Neg Reg: Abernathy reminded attendees that ED will be hosting an in-person negotiated rulemaking committee next week, starting June 30, focused solely on Public Service Loan Forgiveness (PSLF) and the definition of a qualifying employer. The department has already hosted public hearings related to this topic. Those interested can register to watch the committee in person or online via ED’s website.
Final Rules: Abernathy highlighted recent final rules completed through the negotiated rulemaking process, including the final regulations for TRIO, return of Title IV funds (R2T4), and distance education.
Saving on a Valuable Education (SAVE) Plan Status: Abernathy gave an overview of the recent legal challenges against the Saving on a Valuable Education (SAVE) repayment plan. Earlier in February, the 8th Circuit Court of Appeals upheld the injunction to block the SAVE plan as well as the rule package it was included in, in its entirety. The Eastern Missouri lower district court is now tasked with issuing a final ruling on the fate of the SAVE plan, but the timeline remains unclear. As a result of this injunction, ED took down and later reinstated the income-driven repayment (IDR) plans and loan consolidation online applications.
Perkins Loans: Abernathy reminded attendees about several important issues regarding Perkins loans. First, institutions must reconcile their Perkins loans, not servicers, and announced that the new Perkins Loan Portfolio Report is available. Institutions must also assign to ED any Perkins loan defaulted on for over two years. Lastly, institutions that no longer wish to service their Perkins loan portfolio should begin the liquidation process to close out their program.
Joint Consolidation Loans: ED has begun processing joint consolidation loans on December 31, 2024, Abernathy said.
Stop Campus Hazing Act: Abernathy provided a timeline for implementing the Stop Campus Hazing Act and how it will impact institutions. The Stop Campus Hazing Act was signed into law in late December 2024. Abernathy's timeline noted key dates, including that on June 23, 2025, anti-hazing policies and prevention programs should be in place at an institution. By July 1, 2025, institutions must have a process for documenting violations of the institution’s hazing standards of conduct. By December 23, 2025, the Campus Hazing Transparency Report must be publicly available. And by October 1, 2026, hazing statistics will be included for the first time in the institution’s 2026 annual security report.
Abernathy noted that a Dear Colleague Letter (DCL) with more guidance will be published soon.
Changes to the Approval Process for Changing Accrediting Agencies: Abernathy highlighted guidance regarding ED’s recent DCL, adding that ED will expedite the review of institutional applications to change accrediting agencies, except in rare cases.
Upcoming Guidance on Federal Tax Information and Non-FAFSA Data: ED will soon publish a DCL with guidance on the use of Federal Tax Information (FTI) and non-FAFSA data. Abernathy gave a preview of what the DCL will include, such as clarifying language on how FTI and FAFSA data may be used and information about student written consent. Abernathy clarified that this DCL will supersede previous guidance from ED.
2026-27 FAFSA: Musser recapped ED’s Wednesday conference session on the 2026-27 FAFSA, including added improvements to the contributor process and upcoming beta testing.
ED’s Fraud Prevention Efforts and V4/V5 Identity Verification: ED is ramping up efforts to prevent fraud and identity theft. This will occur in two phases, with phase 1 being additional students selected for V4/V5 verification. However, Musser said this change is a temporary solution and he long-term solution will be through FSA, which is developing its own identity validation process.
Late Disbursement Flexibilities: ED has expanded its guidance on late disbursement flexibilities to include all students who filed a 2024-25 FAFSA and are, or were, impacted by a known issue announced by ED.
GE and FVT Reporting: Musser reminded attendees that the institutional reporting deadline for GE and FVT for the 2024 cycle was extended to September 30, 2025. However, the 2025 reporting deadline is the next day, on October 1, 2025.
Institutional Oversight: Musser told attendees that institutional oversight questions should be sent to [email protected].
Outreach to Borrowers: Musser gave an overview of ED’s recent efforts to remind borrowers to repay their student loans. That includes requesting support from institutions to reach out to their former students for whom they have contact information. ED also plans to publish loan non-payment rates by institution, Musser said.
As a reminder, this session was recorded and will be available to all following the conference.
Our Today's News team is on the ground in Anaheim, keeping you up to date on NASFAA 2025 sessions and special events. Be sure to follow our social media channels, where you can share your experiences and connect with your colleagues. Check out all of our conference news coverage and stay tuned to Today’s News for more throughout the conference.
Publication Date: 6/27/2025
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