The Trump administration and the Department of Education are welcoming education stakeholders to provide “deregulatory ideas” on how to best overhaul the current student loan system.
The federal government on Thursday launched a negotiated rulemaking process to streamline regulations for the Public Service Loan Forgiveness (PSLF) Program, the Pay As You Earn (PAYE) plan, and the Income-Contingent Repayment (ICR) plan.
The move falls in line with the Trump administration’s recent efforts to significantly downsize the Education Department and revamp the student loan system. One executive order changed who’s eligible to receive PSLF programs and the Department of Education recently demanded student loan servicers quit offering a Biden-era income-driven repayment plan.
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“This process will focus on how the Department can rightsize Title IV regulations that have driven up the cost of college and hindered innovation,” said Acting Under Secretary James Bergeron. “Not only will this rulemaking serve as an opportunity to identify and cut unnecessary red tape, but it will allow key stakeholders to offer suggestions to streamline and improve federal student aid programs.”
The next step in the rule-making process requires the Department of Education to form a committee of agency officials and interest groups to deliberate on proposed regulation changes. The committee will refine its solutions based on feedback from public hearings held on April 29 and May 1. Written comments are also accepted on the Federal eRulemaking Portal at Regulations.gov, according to the announcement.
The Biden administration initiated negotiated rulemaking processes across various facets of higher education. It challenged regulations across inclusive access, distance learning, accreditation, financial aid and more.
While the notice on negotiated rulemaking states that it plans to review “various programs authorized under Title IV,” the Trump administration hasn’t yet mentioned any significant overhaul of Pell Grants.
