By Hugh T. Ferguson, NASFAA Managing Editor
To round out the NASFAA 2026 National Conference, attendees heard from NASFAA’s policy team, which explained where things stand on the implementation of the One Big Beautiful Bill (OBBBA), congressional dynamics, and NASFAA’s continued engagement in the policy space.
Before digging into the policy front, the session began with a passing of the gavel from 2025-26 National Chair Heidi Carl to 2026-27 National Chair Dr. Angela Johnson, the vice president of enrollment management at Cuyahoga Community College (Tri-C).
During her remarks, Johnson stressed the importance of meeting students where they are and to “bloom” where students need financial aid professionals most, especially as the student aid landscape continues to shift beneath the profession’s feet.
“Many of us spent the past several years adapting to special circumstances we did not choose,” Johnson said. “Yet despite all this, we remain here serving, leading, advocating, innovating and moving forward, not because the challenges disappeared but because the mission remains.”
The presentation then turned to NASFAA’s President & CEO Melanie Storey, who provided an overview of federal changes from this time last year.
During last year’s conference, OBBBA was still working its way through Congress, and its enactment, along with finalized policy, was still very much up for debate. Fast forward to this July, when the breakneck pace of legislative activity has led to the law’s enactment, with new rules now taking full effect.
Storey highlighted key pressure points that have emerged since the law’s enactment, in which students and their families are trying to navigate these new rules, meanwhile financial aid professionals must also navigate shifting guidance and try to combat burnout, staffing issues, and more demands on their offices.
To combat these challenges and difficult times, Story reminded professionals to ensure they first take care of themselves.
“Please put your oxygen mask on before helping others,” Storey said. “It is such a community of giving and I enjoy all of you for that, but I also need you to take care of yourselves.”
Karen McCarthy, NASFAA's vice president of public policy and federal relations, provided more detail on the federal dynamics and recent developments that have raised new questions concerning OBBBA guidance.
As Congress heads into a midterm election year, McCarthy explained that there is significant uncertainty depending on whether there is a change in control of either or both chambers.
Right now, it is clear that there will be a change in Senate leadership, since the Education Committee chair, Bill Cassidy (R-La.) lost his primary race. After the elections, the committee will either be run by a new Republican or return to control of Democrats if the chamber flips.
If Democrats manage to flip a chamber, McCarthy indicated that there would likely be a significant amount of oversight activity conducted by Democrats who have been seeking answers into the Department of Education’s (ED) staffing following reduction in force (RIF) notices.
McCarthy then walked attendees through the annual appropriations process, which is currently in the middle of negotiations for fiscal year (FY) 2027. She outlined the White House budget request as well as the proposal put forward by the House. Notably, with only a few weeks until the summer recess, the Senate has yet to provide any bill text for its proposal.
Since Congress has struggled to meet its annual September 30 deadline to complete the budget process, McCarthy said it seems likely that another short-term extension will be needed to get through the fall’s elections.
Regardless of what happens during the elections, it is likely that Congress will focus on a projected shortfall for the Pell Grant Program and said that NASFAA would continue to urge for increased funding for the program, especially after its expansion with Workforce Pell under OBBBA.
During the week of the conference, there was significant activity in the courts concerning OBBBA impacting loan limits and the “professional degree” definition.
Last week, a federal court order temporarily halted (or “stayed”) key parts of ED’s narrowed professional degree definition. In this interim period, while the department will likely seek to appeal the ruling, ED issued an Electronic Announcement (EA) (GENERAL-26-42), on Tuesday, clarifying how schools should treat professional degree programs for loan limit purposes.
McCarthy also pointed to ED’s recent guidance where institutions can use their judgment as to what to do in the interim of this ruling, noting they have the ability to limit loans for certain programs — a flexibility that ED detailed in a Dear Colleague Letter late last week.
Lastly, McCarthy highlighted that the policy team is on the lookout for another negotiated rulemaking session that ED teased for early spring 2027.
Melanie then explained that, for the year ahead, Congress will likely not maintain the same pace of rapid changes in student aid, as midterms, possible gridlock, and additional court activity would slow the legislative process.
Even though the legislative pace may slow, it offers financial aid offices the opportunity to focus on their students and raise their voice in highlighting what is happening on their campuses.
“Your stories are powerful,” Storey said. “They are real students, real examples and so we always rely on you.”
This concludes the NASFAA 2026 National Conference. Make sure to check out our conference news coverage on sessions you may have missed!
Publication Date: 7/6/2026
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