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

November 12, 2024

Letter Supporting the FAFSA Deadline Act

On behalf of 41 other higher education associations, ACE wrote to the leadership of the House of Representatives in support of the FAFSA Deadline Act.

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August 23, 2024

Comments to the Department of Education on Proposed Distance Education Rule

On behalf of 23 other higher education associations, ACE wrote to the Department of Education with comments on a notice of proposed rulemaking that addresses distance education, return of Title IV funds, and TRIO.

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July 22, 2024

Summary: The U.S. Department of Education’s Proposed Rule on Distance Education, Return of Title IV Funds, and the Federal TRIO Programs

This summary gives an overview of new proposed regulations from the Department of Education concerning distance education, the return of Title IV funds process, and the Federal TRIO programs.

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July 9, 2024

Letter in Support of the FAFSA Deadline Act

Letter to House Committee on Education and the Workforce leaders in support of the FAFSA Deadline Act, which would move up the statutory date for the annual release of theFAFSA from Jan. 1 to Oct. 1 each year.

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June 7, 2024

Letter to the Rules Committee on the National Defense Authorization Act

Along with 22 other higher education associations, ACE sent this letter to the House Rules Committee urging lawmakers to oppose efforts to add the Bipartisan Workforce Pell Act and the DETERRENT Act to the National Defense Authorization Act.

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May 22, 2024

Proposed Changes to FAFSA for the 2025-26 Award Year

Along with 35 other higher education associations, ACE sent this letter to the House Education and the Workforce Committee urging lawmakers to undertake a long-term assessment of the FAFSA delays' impact on students and make other changes for the 2025-...

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March 28, 2024

FAFSA Survey Results Sent to Education Secretary Miguel Cardona

To better understand the challenges faced by institutions with the new FAFSA system, ACE, EDUCAUSE and NACUBO conducted this survey targeting various campus stakeholders. Results were sent to the Department of Education.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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Latest News

November 6, 2024
2:30 p.m.–3:15 p.m. ET

dotEDU Live Post-Election Breakdown: What the 2024 Results Could Mean for Higher Education

Join dotEDU Live on November 6 to break down the 2024 election results and what they could mean for colleges and universities. With control of Congress and the presidency at stake, let’s explore the potential impacts on higher ed.

October 6, 2024

Higher Education Builds America

The key to unlocking America’s potential is strengthening our world-leading colleges and universities because higher education builds America. Explore ACE’s policy recommendations now.

September 30, 2024

SAA Urges Administration to Boost Student Aid in FY 2026

The Student Aid Alliance is asking the administration to provide robust increases for federal student aid in its FY 2026 budget proposal.

September 16, 2024

dotEDU Live: Campuses, Congress, and the Campaign Trail This Fall

With Congress in a monthlong sprint, hosts Jon Fansmith and Sarah Spreitzer explore the flurry of messaging bills in Congress along with the legislation lawmakers actually need to pass before heading out for full-time campaigning.

August 20, 2024

The FAFSA Failure, Enrollment Concerns, and How Institutions Are Responding to the Crisis

Watch this impactful webinar held August 20 on FAFSA failures, enrollment concerns, and innovative responses from higher ed. Explore strategies that support students and maintain educational access during these uncertain times.

August 5, 2024

Senate Appropriations Committee Advances Higher Ed Spending Bill

In one of Congress' final actions before the August recess, the Senate Appropriations Committee last week advanced a bill to fund the departments of Labor, Health and Human Services, Education, and related agencies.

July 22, 2024

ED Proposes Major Regulatory Changes to Distance Learning, Federal TRIO Programs and R2T4 Calculations

The Department of Education last week released proposed regulations that would alter distance education, return of Title IV funds, and Federal TRIO programs, while also announcing that it would delay the release of draft regulations covering other topics.

June 27, 2024

House Subcommittee Advances Spending Bill with Higher Ed Cuts

A House Subcommittee advanced a spending bill that includes substantial cuts to several key higher education programs for FY 2025, which begins Oct. 1.

May 28, 2024

ACE, Other Groups Urge Congress to Address FAFSA Issues for 2025-26 Application Cycle

ACE sent a letter to the House and Senate education committees last week urging lawmakers to undertake a long-term assessment of the FAFSA delays' impact on students and institutions.

April 18, 2024

dotEDU Live: Budget Battles, FAFSA Fails, and Biden's New Loan Forgiveness Plan

With Congress back from spring break, Jon and Sarah look at what's on the agenda in DC.

April 15, 2024

Student Aid Alliance Calls for Increases to Pell Grants, Other Federal Student Aid Programs

On the heels of Congress approving a long-delayed final FY 2024 spending package last month, the Student Aid Alliance (SAA) is urging the House and Senate appropriations committees to increase funding for student financial aid programs in FY 2025.

April 15, 2024

Congress, Higher Ed Leaders Urge Education Department to Address FAFSA Issues

Members of Congress and higher education leaders last week continued to highlight how the disastrous rollout of the revised FAFSA is affecting students, while urging the Department of Education to promptly address the ongoing problems.

Navigating the FAFSA Crisis: A Timeline

The 2021 FAFSA Simplification Act represents a significant overhaul of how federal student aid is awarded. See a timeline of the Department of Education's problematic implementation of the reforms.

April 1, 2024

Survey Reveals Impact of Problems with New FAFSA System

To better understand the challenges faced by institutions with the new FAFSA system, ACE, along with EDUCAUSE and the National Association of College and University Business Officers, conducted a survey targeting stakeholders at member institutions.

March 25, 2024

Biden Signs FY 2024 Spending Bill, Higher Education Funding Holds Steady

After months of delays, over the weekend Congress passed and President Biden signed a $1.2 trillion spending bill for the remainder of FY 2024 that includes funding for the Department of Education and some research agencies.

March 13, 2024

Biden Budget Proposes Pell Increase, Free Community College

President Biden’s Fiscal Year 2025 budget request released Monday includes $82 billion in federal discretionary spending for the Education Department.

March 1, 2024

FAFSA Glitches Leave Students, Colleges in Limbo

Hosts Jon and Mushtaq are joined by special repeat guest Justin Draeger, president and CEO of NASFAA, to talk about the Education Department’s flawed rollout of the new FAFSA form and the implications for students and colleges as well as what happens next

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.

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.

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.

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.