Federal Higher Education Update: Student Aid, Reporting and Grants

Recent federal actions address student loan changes under the One Big Beautiful Bill Act (P.L. 119-21), institutional reporting requirements and oversight of federal grants:

• Continuing student loan limits: ED now directs schools to calculate Expected Time to Credential using completed credits rather than time enrolled. This determines how long continuing students may access higher, pre-OBBBA loan limits. Schools that relied on earlier guidance may need to reassess eligibility. Learn more.
• Financial value transparency and gainful employment reporting: More than 1,900 institutions with incomplete 2024 and 2025 data must report by January 15, 2027. No further extensions will be granted, and noncompliance may result in fines or sanctions. The 2026 reporting deadline remains October 1, 2026. Learn more.
• Federal grant oversight: OMB has proposed government-wide rules that would give senior political appointees greater authority over federal grant awards and terminations. Although the OMB rule is not final, ED and the National Science Foundation are advancing separate proposals with similar provisions. ED’s proposal would also favor applicants that accept lower or no indirect-cost reimbursement and require states and subrecipients to comply with presidential executive orders. If finalized, these changes could make institutional grant funding less predictable. Comments on ED’s proposal are due September 23. Learn more.