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

Letter to the House on the Bipartisan Workforce Pell Act
February 27, 2024
Letter to the House on the Bipartisan Workforce Pell Act
On behalf of 15 other higher education organizations, ACE wrote to House leadership in opposition to an offset mechanism in the Bipartisan Workforce Pell Act.
Summary: A Roadmap To College Student Success
February 2, 2024
Summary: A Roadmap To College Student Success
On Jan. 30, 2024, Democrats on the House Committee on Education and the Workforce unveiled the Roadmap to College Student Success, a package of six previously introduced bills to address college affordability, access, and student support.
Letter to the House on the College Cost Reduction Act
January 30, 2024
Letter to the House on the College Cost Reduction Act
On behalf of 14 other higher education organizations, ACE wrote to leadership of the House Committee on Education and the Workforce with concerns about some provisions of the College Cost Reduction Act, along with support for others.
Summary: The College Cost Reduction Act
January 19, 2024
Summary: The College Cost Reduction Act
House Committee on Education and the Workforce Chairwoman Virginia Foxx (R-NC) introduced the College Cost Reduction Act (H.R. 6951) on January 11, 2024 in response to the challenges impacting students who are pursuing their postsecondary degree.
Letter to the House on the Bipartisan Workforce Pell Act
December 11, 2023
Letter to the House on the Bipartisan Workforce Pell Act
ACE, on behalf of five other higher education associations, wrote to leaders of the House Committee on Education and the Workforce with concerns about the offset included in the Bipartisan Workforce Pell Act.
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.
Summary: College for All Act of 2023
October 18, 2023
Summary: College for All Act of 2023
The College for All Act would create a $10 billion federal program to match state funding at public institutions of higher education to cover student support programs at under-funded institutions, among other provisions.
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.

​Latest News

FAFSA Glitches Leave Students, Colleges in Limbo
March 1, 2024
FAFSA Glitches Leave Students, Colleges in Limbo
Jon, Sarah, and Mushtaq are thrilled to speak with ACE Board member and American University President Sylvia Burwell as she prepares to finish out her final year at the helm of the Washington, DC, campus.
Colleges Extend Deadlines Amid FAFSA Troubles; Department of Education Unveils Additional Relief Measures
February 16, 2024
Colleges Extend Deadlines Amid FAFSA Troubles; Department of Education Unveils Additional Relief Measures
​A growing number of colleges and universities, public and private, are taking action to help admitted students have adequate time to compare financial aid offers in the wake of the Department of Education’s rollout of the new FAFSA form.
House Education Committee Approves College Cost Reduction Act
February 5, 2024
House Education Committee Approves College Cost Reduction Act
The House Education and the Workforce Committee voted to pass the College Cost Reduction Act, an overhaul of federal student aid, lending, repayment, and accreditation processes meant to be a significant step toward reauthorizing the Higher Education Act.
Joint Statement on Extending Financial Aid, Enrollment Deadlines
January 31, 2024
Joint Statement on Extending Financial Aid, Enrollment Deadlines
Due to the continued delays in the availability of FAFSA applicant data announced by the U.S. Department of Education, we encourage colleges and universities to provide flexibility to students and families.
Higher Ed Groups Urge Flexible Enrollment and Financial Aid Deadlines in the Wake of FAFSA Delays
January 31, 2024
Higher Ed Groups Urge Flexible Enrollment and Financial Aid Deadlines in the Wake of FAFSA Delays
​The Education Department has announced that higher education institutions and states can expect to receive applicant information from the new FAFSA in the “first half of March,” backtracking on their commitment to deliver the information in January.
dotEDU Live: New Year, Same Congress—What’s Next for Higher Ed?
January 25, 2024
dotEDU Live: New Year, Same Congress—What’s Next for Higher Ed?
Hosts Jon Fansmith and Sarah Spreitzer discuss how the 2024 presidential election might impact higher education and look ak problems with the new FAFSA, the latest House Higher Education Act reauthorization bill, short-term Pell, and more.
The College Cost Reduction Act: What You Need to Know
January 19, 2024
The College Cost Reduction Act: What You Need to Know
Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce, has introduced a comprehensive bill that aims to overhaul the student loan process and restrain college costs.
AU President Shares Challenges, Triumphs of Presidency
January 11, 2024
AU President Shares Challenges, Triumphs of Presidency
Jon, Sarah, and Mushtaq are thrilled to speak with ACE Board member and American University President Sylvia Burwell as she prepares to finish out her final year at the helm of the Washington, DC, campus.
House Committee Approves Bills on Short-Term Pell, WIOA Reauthorization
December 18, 2023
House Committee Approves Bills on Short-Term Pell, WIOA Reauthorization
​Last week, the House Education and the Workforce Committee voted to move forward two bills impacting institutions of higher education: the Bipartisan Workforce Pell Act and the A Stronger Workforce for America Act.
dotEDU Live: The Year in Higher Education Policy
December 14, 2023
dotEDU Live: The Year in Higher Education Policy
The overarching theme is working through the chaos in Washington, and the lineup includes student loan forgiveness, the Supreme Court's decision on race in admissions, institutional accountability, the uptick in international students, and more.
House Committee to Mark Up Short-Term Pell Grant Bill
December 11, 2023
House Committee to Mark Up Short-Term Pell Grant Bill
​The House Education and the Workforce committee is scheduled to mark up a bill Dec. 12 that would provide Pell Grant funding for short-term programs, but includes problematic measures to offset the cost of the expansion.
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.
dotEDU Live: The Pre-Thanksgiving Policy Roundup
November 16, 2023
dotEDU Live: 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.
 
 
 

The Pre-Thanksgiving Policy Roundup

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

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