Editor’s note: This weekly update from the government relations office at the American Association of Community Colleges (AACC) provides the latest on what’s happening in Washington and how AACC is advancing policies to support community colleges and students. Send questions, feedback and more to: kgimborys@aacc.nche.edu.
- Department of Education opens Request for Information on 2025-26 FAFSA
- Borrowers slow to reenter repayment, according to GAO report
Department of Education opens Request for Information on 2025-26 FAFSA
On Wednesday, the U.S. Education Department (ED) published a new Request for Information (RFI) in the Federal Register on ways to improve “help text” and other consumer-facing resources for the 2025-26 Free Application for Federal Student Aid (FAFSA).
The goal of the RFI is for ED to deliver a FAFSA user experience where students and families are more likely to successfully complete and submit the form, rather than improving or expanding the information colleges receive through the form.
In June, the Department had announced that it would not go through a public comment process for the 2025-26 FAFSA, rendering them unable to make substantive changes to the form’s wording, questions, or order of questions.
As a reminder, ED typically publishes the FAFSA in draft form for public comment, creating a formal opportunity for stakeholder groups to provide feedback on the form and any changes proposed by the agency. The process is lengthy, usually beginning with a 90-day comment period in March of the proceeding award year. After the feedback window closes (usually in June), officials have around three months to consider comments, incorporate feedback and ensure that a final form is ready by the usual publication deadline of October 1.
March came and went without a draft form posted to the Federal Register, as FSA staff continued to try to put out fires associated with the 2024-25 FAFSA. Rather than risk additional delays to the 2025-26 form, the Department eliminated the public comment period.
The RFI provides an opportunity for stakeholders to share feedback on the current form and make recommendations for non-substantive changes where appropriate. This could include editing or creating new “help text” to provide students and families with more information on questions and fields.
Comments are due September 13, 2024. The American Association of Community Colleges (AACC) remains highly engaged in delivering a 2025-26 FAFSA form that works for community college students and reflects the needs of the sector. Please contact Kathryn Gimborys, AACC’s government relations manager, to share suggestions for improving the FAFSA form or to discuss the issue further.
Borrowers slow to reenter repayment, according to GAO report
This week, the Government Accountability Office (GAO) released a new report detailing borrowers’ repayment behavior as the end of the Department of Education’s (ED) “on-ramp” grace period looms. The report was requested by Rep. Virginia Foxx (R-North Carolina), chair of the House Committee on Education and the Workforce, and Sen. Bill Cassidy (R-Louisiana), ranking member of the Senate Committee on Health, Education, Labor, & Pensions.
As a reminder, borrowers were not required to make payments on student loans for three years amid the COVID-19 public health emergency. That repayment pause lifted in October 2023. Concerned that many borrowers were not ready to reenter repayment, and as the Biden Administration worked to advance new repayment and loan cancellation policies, borrowers were able to take advantage of a 12-month “on-ramp” period. During the on-ramp, borrowers were shielded from negative credit impacts and collection activity, such as wage garnishment, if they did not make payments. This grace period is set to sunset in October.
Ahead of a full return to repayment and the consequences associated with non-repayment, the GAO looked at borrowers’ repayment behavior as of January 2024. The report found that nearly 30 percent of federal student loan borrowers – or 10 million borrowers – were past due on payments, with six million being between 91- and 120-days delinquent. Seventeen percent of borrowers had loans in deferment or forbearance, including those put in administrative forbearance as the Biden Administration works to implement and defend its SAVE income-driven repayment plan.
While community colleges have low rates of student borrowing and have not historically had challenges associated with meeting standards around the Cohort Default Rate (CDR), the end of the on-ramp period presents a new and challenging environment for default prevention. The American Association of Community Colleges (AACC) will continue to monitor the student loan repayment landscape and its implications for students and institutions.