Background
Student Loan Borrower Support Reminder to Universities Updated May 7, 2025
- Department of Education Dear Colleague Letter: S. Department of Education Reminds Colleges and Universities of Their Obligations to Help Struggling Borrowers
The U.S. Department of Education (Department) issued a ‘Dear Colleague Letter’ (DCL) to institutions of higher education reminding them of their shared responsibility under Title IV of the Higher Education Act of 1965 (HEA) to support student loan borrowers.
Improvements to FASFA Form Updated Feb. 6, 2025
- Department of Education News Release: U.S. Department of Education Announces Improvements to the FAFSA® Form
The Executive Order requires the Department of Education to modify the current question about “gender” on the 2025–26 form to collect data about applicants’ sex.
Restoring Public Service Loan Forgiveness Updated Feb. 6, 2025
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- Executive Order: EO – Restoring Public Service Loan Forgiveness
- Fact Sheet – Fact Sheet: Restores Public Service Loan Forgiveness
This Executive Order will redefine eligibility for the Public Service Loan Forgiveness (PSLF) program, specifically excluding from coverage individuals employed by organizations “whose activities have a “substantial illegal purpose.”
UW Communication
- University and College Leaders Share Concern on Financial Aid (May 15 letter from Universities of Wisconsin, Wisconsin Association of Independent Colleges and Universities, and Wisconsin Technical College System)
- President Rothman letter to WI Delegation on Student Financial Aid (April 9 letter from UW President Jay Rothman)
Frequently Asked Questions
The Universities of Wisconsin are aware of executive orders relating to financial aid. We hope that these changes will not affect federal student financial aid for the current semester and continue to diligently seek more information. We will continue to closely monitor developments and remain prepared to navigate any changes. If you have concerns about your financial aid, please contact your university’s financial aid office.
Language in the Executive Order provides no clear indication of impact on student aid. The day after signing the order President Trump said student loans would move to the Small Business Administration. There is currently no indication regarding the future placement of Pell Grants or other grant programs. This information will be updated as more information becomes available.
According to the U.S. Department of Education, Federal Student Aid, “A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans. As a result, the IDR and online loan consolidation applications are temporarily unavailable. Borrowers can still submit a paper loan consolidation application.” Read additional updates on the SAVE Plan court actions and instructions for submitting a loan consolidation PDF application.
There are no immediate impacts relating to the Executive Order, Restoring Public Service Loan Forgiveness (PSLF) program. The order directs the Secretary of the Department of Education (DOE), in cooperation with the Secretary of the Treasury, to engage in negotiated rulemaking to effectuate changes to the PSLF program. The impacts of the new rules cannot be gauged until we have a better understanding of where DOE intends to take this. We will monitor further information and developments coming out of the DOE.
Additional information: Fact Sheet: President Donald J. Trump Restores Public Service Loan Forgiveness
Students who previously submitted their 2024-25 or 2025-26 FAFSA with either the response option “nonbinary” or “prefer not to answer” will not be required to update their response. However, if a student initiates a FAFSA correction to any question, they will be prompted and required to provide a response of either “male” or “female” to the revised question. The applicant’s response is solely used for statistical and research purposes by DOE. The applicant’s response does not impact their eligibility for federal student aid.
If a school initiates a correction (such as for verification, professional judgment, etc.) they will not be prompted or required to select a response to the question regarding the applicant’s sex, as schools do not see the responses for this question, and it is not present on the applicant’s ISIR. Because of this, DOE’s revision to the FAFSA does not require a change to the ISIR record layout.
If a student completes a paper FAFSA with the old version of the question text and response options, it will still be processed. It is unclear at this time how the FAFSA Processing System will handle a selection of “nonbinary” or “prefer not to answer.” The record will not be rejected, and the applicant will not need to complete a revised version of the paper FAFSA.
Source: National Association of State Financial Aid Administrators article, How ED’s Revised Options for Gender on the FAFSA Will Impact the Correction Process