- Negotiated Rulemaking scheduled for Workforce Pell implementation
- Final score for education components of the OBBB
- Department of Education releases nonrepayment rates by institution
- Register for Advocates in Action 2025!
Negotiated Rulemaking scheduled for Workforce Pell implementation
On Thursday, the Department of Education scheduled an upcoming negotiated rulemaking session to implement the workforce Pell and accountability components of H.R. 1, the One Big Beautiful Bill (OBBB). The table, to be called the “Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee”, will be held over two weeks: December 8-12 and January 5-9. In addition to addressing remaining questions around Workforce Pell, this table will also cover the new accountability system that measures the earnings of program completers against a comparison group of high school graduates and Gainful Employment/Financial Value Transparency regulations.
Another negotiated rulemaking table – to be called the “Reimagining and Improving Student Education (RISE) Committee – is scheduled to meet in September, October, and November. This committee will address changes to student loan origination and repayment in the OBBB.
Public comments for both tables will take place on August 7.
This schedule implies that these changes will be implemented later than originally imagined by Congress, including Workforce Pell. To take effect for the 2026-27 award year, a final rule would need to be issued by November 1, 2025. With this new schedule, the earliest implementation date will be July 1, 2027.
The American Association of Community Colleges (AACC) will be actively monitoring the implementation of the OBBB and will help advance the sector’s interests during both negotiated rulemaking tables. Community college leaders who are interested in serving as negotiators are encouraged to contact AACC’s Office of Government Relations (OGR).
Final score for education components of the OBBB
On Monday, the Congressional Budget Office (CBO) released the final score for H.R. 1, the One Big Beautiful Bill (OBBB) budget reconciliation legislation. The package ultimately decreases federal spending for higher education by $284 billion, with the vast majority of that savings coming from changes to loan repayment policies. Workforce Pell is expected to cost $275 million. The new accountability scheme is expected to save $777 million.
Department of Education releases nonrepayment rates by institution
On Wednesday, the Department of Education (ED) released institution-level data on loan nonrepayment, using data from the National Student Loan Data System (NSLDS). The report shows the percentage of borrowers who entered repayment since January 2020 and were more than 90 days delinquent as of May 2025. This data give a snapshot of which institutions may be at risk of losing access to Title IV funds if current trends continue. As a reminder, if a college’s Cohort Default Rate (CDR) reaches 30 percent for three years or 40 percent for one year, they are not able to offer student loans or Pell Grants to students. Institutions have not had to worry about CDRs for the last few years during and immediately after the pandemic-era payment pause. Before the pandemic, very few institutions had a failing CDR.
According to the new data, more than 1,000 colleges and universities had a nonpayment rate of above 30 percent, meaning they may be at risk of reaching a failing CDR threshold in the next few years. Colleges are encouraged to actively monitor their nonrepayment numbers. There is an appeals process established for colleges that meet the CDR thresholds.
Repayment rates are lower than typical across the sectors, in part, due to uncertainty and confusion for borrowers reentering repayment after the payment pause and payment on-ramp period, as well as significant disruptions to repayment plans available to borrowers. The Department has actively encouraged institutions to reach out to borrowers to help get them into active repayment. AACC will continue to monitor nonrepayment rates for the sector and propose solutions to support both institutions and community college borrowers.
Register for Advocates in Action 2025!
Registration is now open for AACC’s annual Advocates in Action! The two-day seminar will take place in Washington, D.C. on September 17 and 18.
For those who have not yet attended, the program is designed for community college leaders who want an insider’s view on how Washington formulates higher education policy and who want to become more involved in the federal legislative process. Interactive sessions with key executive branch officials and senior Congressional staff will provide valuable insights about the current dynamics and issues surrounding key funding and other pending legislation. Time is reserved for attendees to meet with their federal legislators to advocate for community college priorities.
Community college presidents, trustees, government relations directors, and other campus administrators are strongly encouraged to take advantage of this opportunity to network, discuss key policy issues, and advocate for critical federal programs.