Federal Financial Aid

The Issue

Federal financial aid is a primary issue for the American Council on Education (ACE) and the higher education association community, reflecting the vital role it plays for students, families, campuses and the nation as a whole. Federal aid programs, such as Pell Grants, Federal Work-Study, and Stafford Loans, encompass a variety of processes and broader issues, including congressional appropriations, access, student debt load, and streamlined application and repayment processes. ACE is at the forefront in working with Congress on policies that maximize federal support for all students, with a particular focus on low-income and historically underserved communities.

Our Work

Letters, Bill Summaries, and More

Talking Points: Bipartisan Workforce Pell Act
December 7, 2023
Talking Points: Bipartisan Workforce Pell Act
Outlining concerns with the Bipartisan Workforce Pell Act (H.R. 6585), a bill intended to provide undergraduate students with the opportunity to use the Pell Grant for short-term programs.
Summary: The Bipartisan Workforce Pell Act
December 7, 2023
Summary: The Bipartisan Workforce Pell Act
Summary of the Bipartisan Workforce Pell Act (H.R. 6585), a bill intended to provide undergraduate students with the opportunity to use the Pell Grant for short-term programs.
Letter to ED on Implementation of the Updated FAFSA
November 17, 2023
Letter to ED on Implementation of the Updated FAFSA
On behalf of six other higher education associations, ACE urged the Department of Education to deepen its communication with the higher education community to ensure successful implementation of the new Free Application for Federal Student Aid.
Letter to ED on FAFSA Release Date
October 13, 2023
Letter to ED on FAFSA Release Date
ACE, along with 11 other higher education organizations, wrote to the Department of Education urging officials to announce the date on which the updated Free Application for Federal Student Aid (FAFSA) will be available.
Letter on House FY 2024 Labor-HHS-Education Appropriations Bill
July 28, 2023
Letter on House FY 2024 Labor-HHS-Education Appropriations Bill
ACE, on behalf of of 29 other higher education organizations, wrote to leaders of the House Appropriations Committee with concerns about proposed cuts for higher education programs in the House's Labor-HHS-Education funding bill for FY 2024.
Request for a Comprehsensive Examination of the New FAFSA Need Analysis
June 8, 2023
Request for a Comprehsensive Examination of the New FAFSA Need Analysis
Letter from ACE and 16 other higher education groups to Education Secretary Miguel Cardona requesting a comprehensive examination of how the new FAFSA need analysis formula will impact students and families
Letter of Support for the Tax-Free Pell Grant Act
May 5, 2023
Letter of Support for the Tax-Free Pell Grant Act
Letter to Reps. Lloyd Doggett (D-TX) and Mike Kelly (R-PA) strongly endorsing the Tax-Free Pell Grant Act, which would repeal the taxability of Pell Grants and help hundreds of thousands of students access the American Opportunity Tax Credit.
Letter to Congress in Support of the Tax-Free Pell Grant Act
October 28, 2022
Letter to Congress in Support of the Tax-Free Pell Grant Act
ACE, on behalf of 15 other higher education organizations, sent this letter to the leaders of the House Ways and Means Committee and the Senate Finance Committee urging them to include the Tax-Free Pell Grant Act in any lame-duck tax legislation.
Comments to the Education Department on Title IV NPRM
August 26, 2022
Comments to the Education Department on Title IV NPRM
Comments from ACE and 16 other associations to the Department of Education in response to the notice of proposed rulemaking regarding Title IV of the Higher Education Act.
Letter to Education Department Urging Extension of PSLF Waiver
August 18, 2022
Letter to Education Department Urging Extension of PSLF Waiver
As the Oct. 31 deadline for the extension of the Public Service Loan Forgiveness (PSLF) waiver nears, ACE and six other higher education groups urge Secretary Miguel Cardona to extend the waiver in order to better align with proposed regulatory changes.
Comments to the Education Department on Student Loan Forgiveness NPRM
August 12, 2022
Comments to the Education Department on Student Loan Forgiveness NPRM
ACE and 23 other associations sent these comments to the Department of Education in response to the notice of proposed rulemaking regarding targeted student loan forgiveness.
Facts in Hand: Who Is Borrowing for College?
May 17, 2022
Facts in Hand: Who Is Borrowing for College?
Data show that undergraduate student borrowing patterns are similar across sectors, an indicator that higher education is trying to minimize undergraduate debt. Graduate student borrowing data, however, offer a note of caution.
Letter to Appropriations Subcommittees on Education Funding Priorities for FY 2023
April 19, 2022
Letter to Appropriations Subcommittees on Education Funding Priorities for FY 2023
Letter from the Student Aid Alliance to House and Senate Labor-HHS-Education Appropriations subcommittees requesting that student aid remains a high priority in the funding bill for FY 2023.
Paying for College
March 30, 2022
Paying for College
Understanding how students pay for college is useful for addressing barriers to financing higher education. Learn more about average tuition prices and federal aid for undergraduate students.
Letter to Congress on Doubling the Pell Grant
February 3, 2022
Letter to Congress on Doubling the Pell Grant
Along with 188 partner organizations, ACE sent this letter to congressional leaders yesterday asking them to consider doubling the maximum Pell Grant as they work toward a spending agreement for FY 2022.
2021 Fall Term Pulse Point Survey of College and University Presidents, Part III
January 13, 2022
2021 Fall Term Pulse Point Survey of College and University Presidents, Part III
In this survey, 91 presidents identified their most pressing current concerns and shared their views on changing student demographics, as well as the value of Pell Grants in providing low- and moderate-income students access to higher education.
Letter to the Department of Education on Student Loan Repayment Transition
November 17, 2021
Letter to the Department of Education on Student Loan Repayment Transition
ACE and the other higher education associations write to Secretary Cardona urging ED to share the full details of what is planning to do to help students and colleges during the transition to resuming student loan repayments.
Letter to Congress on Higher Education Priorities in the Build Back Better Plan
October 27, 2021
Letter to Congress on Higher Education Priorities in the Build Back Better Plan
ACE and a coalition of higher education organizations urge House and Senate leadership to preserve critical investments in college affordability and completion in the final Build Back Better package.
Letter to Congress in Support of the Higher Education Provisions in the Build Back Better Act
October 20, 2021
Letter to Congress in Support of the Higher Education Provisions in the Build Back Better Act
Letter to House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer urging Congress to retain the level of higher education funding and key tax provisions provided in the Build Back Better Act passed by the House Budget Committee.
Letter to House Leadership on Repealing Pell Grant Taxability
September 23, 2021
Letter to House Leadership on Repealing Pell Grant Taxability
Letter from ACE and other assocations to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy urging them to repeal the taxability of Pell Grants in the FY 2022 budget reconciliation process.
Letter to the Senate Finance Committee on Repealing Pell Grant Taxability
September 22, 2021
Letter to the Senate Finance Committee on Repealing Pell Grant Taxability
ACE President Ted Mitchell writes to urge members of the Senate Finance Committee to repeal the taxability of Pell Grants in the FY 2022 budget reconciliation process.

​Latest News

ACE, Groups Urge FSA to Work With the Higher Education Community to Ensure Smooth Transition to New FAFSA
November 20, 2023
ACE, Groups Urge FSA to Work With the Higher Education Community to Ensure Smooth Transition to New FAFSA
The Education Department has announced a timeline for its long-awaited overhaul of the Free Application for Federal Student Aid (FAFSA), which aims to simplify the application process and broaden access to financial aid.
The Pre-Thanksgiving Policy Roundup
November 16, 2023
The Pre-Thanksgiving Policy Roundup
Hosts Jon Fansmith and Sarah Spreitzer are joined by their ACE colleague Steven Bloom to discuss how the never-ending threats of a government shutdown are impacting funding legislation for higher education.
dotEDU Live: Chaos in Congress and the Higher Ed Agenda
October 19, 2023
dotEDU Live: Chaos in Congress and the Higher Ed Agenda
Hosts Jon Fansmith and Sarah Spreitzer discuss the House speaker race and its implications for the packed agenda—such as the ongoing spending battle—in Congress, as well as its impact on the Biden administration.
Hundreds of Schools Already Committed to College Cost Transparency Initiative
October 2, 2023
Hundreds of Schools Already Committed to College Cost Transparency Initiative
More than 400 schools have already signed up for the College Cost Transparency Initiative, committing to effectively and transparently communicating student aid offers to students and their families.
Student Aid Alliance Urges Biden Administration to Support Federal Student Aid
October 2, 2023
Student Aid Alliance Urges Biden Administration to Support Federal Student Aid
Members of the Student Aid Alliance sent a letter Sept. 29 to the Department of Education and Office of Management and Budget urging them to provide robust support for federal student aid in the fiscal year 2025 budget proposal.
dotEDU Live: What’s on the Policy Agenda for Higher Ed This Fall?
September 21, 2023
dotEDU Live: What’s on the Policy Agenda for Higher Ed This Fall?
A government shutdown is looming on the horizon, and ACE’s Jon Fansmith and Sarah Spreitzer are back to answer your questions and break down what this means for the higher education community, as well as other issues on this fall’s policy agenda.
Federal Budget Uncertainty Casts Doubt on the Fate of Federal Work-Study, Funding for Other Higher Ed Programs
September 8, 2023
Federal Budget Uncertainty Casts Doubt on the Fate of Federal Work-Study, Funding for Other Higher Ed Programs
After a monthlong break, the Senate and House returned to work with a looming deadline to fund the federal government for the upcoming fiscal year by Sept. 30.
House and Senate Far Apart on Education Funding for Fiscal Year That Begins Oct. 1
August 7, 2023
House and Senate Far Apart on Education Funding for Fiscal Year That Begins Oct. 1
The Senate Committee on Appropriations voted 26 to 2 July 27 to approve the FY 2024 Labor-HHS-Education bill, increasing discretionary funds for the Department of Education by about $370 million over the current fiscal year to $79.6 billion.
House Spending Bill Eliminates Federal Work-Study and SEOG Grants, Makes Other Drastic Cuts to Higher Ed Programs
July 17, 2023
House Spending Bill Eliminates Federal Work-Study and SEOG Grants, Makes Other Drastic Cuts to Higher Ed Programs
The House Appropriations Committee last week released the text of the bill that funds federal education programs for FY 2024, revealing drastic cuts to a number of key higher education programs for the fiscal year that begins Oct. 1.
Biden’s Loan Forgiveness Program Fails Supreme Court Test. What Now?
July 13, 2023
Biden’s Loan Forgiveness Program Fails Supreme Court Test. What Now?
Hosts Jon Fansmith and Sarah Spreitzer are once again joined by NASFAA president Justin Draeger to talk about financial aid in the wake of the Supreme Court's decisions striking down race-conscious admissions and student loan forgiveness.
Double Pell Alliance Urges Congress to Preserve Pell Grant Surplus
June 30, 2023
Double Pell Alliance Urges Congress to Preserve Pell Grant Surplus
Members of the Double Pell Alliance sent a letter June 29 to the leadership of the House and Senate appropriations committees urging them to preserve the surplus of funding in the Pell Grant program.
dotEDU Live: Gainful Employment Rules 3.0, Student Loan Payments Return
June 1, 2023
dotEDU Live: Gainful Employment Rules 3.0, Student Loan Payments Return
Hosts Jon Fansmith and Sarah Spreitzer are joined by Emmanual Guillory, ACE’s newest government relations staffer, to discuss the ongoing saga of the Education Department’s gainful employment rules.
dotEDU Live: New Rules from ED, Culture War Rhetoric Ramps Up, the End of the COVID Emergency, More
February 17, 2023
dotEDU Live: New Rules from ED, Culture War Rhetoric Ramps Up, the End of the COVID Emergency, More
In this live episode, hosts Jon Fansmith and Sarah Spreitzer take audience questions on a range of topics, from the Education Department moving quickly on new regulations to the House hearing on the “crisis” in American education to ChatGPT.
COVID State of Emergency Ends in May; Federal Pandemic Aid was Key to Supporting Students
February 6, 2023
COVID State of Emergency Ends in May; Federal Pandemic Aid was Key to Supporting Students
The Biden administration announced last week that it will end the COVID-19 national and public health emergencies on May 11.
The Year in Higher Education Policy
December 21, 2022
The Year in Higher Education Policy
Hosts Jon Fansmith and Sarah Spreitzer are joined by ACE Senior Vice President Terry Hartle to discuss the federal policy developments in 2022 that impacted students and higher education institutions.
States Step in as Federal Action on Dreamers Goes Nowhere
December 8, 2022
States Step in as Federal Action on Dreamers Goes Nowhere
Political activist Tyler Montague and ACE’s Derrick Anderson visit the podcast to talk about Arizona’s newly passed Proposition 308, which gives in-state tuition for non-citizen residents of the state.
ACE, Higher Ed Groups Launch Task Force to Improve Student Aid Offers and Price Transparency
December 2, 2022
ACE, Higher Ed Groups Launch Task Force to Improve Student Aid Offers and Price Transparency
ACE this week joined the National Association of Student Financial Aid Administrators, the National Association for College Admission Counseling, and seven other higher education associations in launching a task force.
Midterm Election Aftermath
November 21, 2022
Midterm Election Aftermath
Terry Hartle and Jon Fansmith talk about what the midterm elections mean for higher education policy in the lame-duck session and beyond.
​Education Department Issues Final Rules on Student Debt Relief, Other Programs
November 4, 2022
​Education Department Issues Final Rules on Student Debt Relief, Other Programs
The Department of Education released final regulations on targeted student debt relief programs on Oct. 31, hitting the Nov. 1 deadline to meet an implementation date of July 1, 2023.
Nasser Paydar Talks Mental Health, Student Debt Relief, and Other Priorities for the Education Dept.
October 13, 2022
Nasser Paydar Talks Mental Health, Student Debt Relief, and Other Priorities for the Education Dept.
Nasser Paydar, assistant secretary for postsecondary education at the Department of Education, joins the hosts to talk about what the department is doing to improve access and affordability for college students.
Higher Ed Policy Predictions for the Fall
September 29, 2022
Higher Ed Policy Predictions for the Fall
Jon Fansmith and Terry Hartle are back to give their predictions for what Congress will dive into this fall before they adjourn ahead of midterm elections, including a continuing resolution to fund the government through the end of the year.
 
 
 

The Pre-Thanksgiving Policy Roundup

Hear the latest about the updated FAFSA on ACE’s November 15, 2023 dotEDU podcast.

List​​​​en