{"id":6848,"date":"2025-06-11T08:19:17","date_gmt":"2025-06-11T13:19:17","guid":{"rendered":"https:\/\/www.wisconsin.edu\/government-relations\/?page_id=6848"},"modified":"2025-06-11T08:41:59","modified_gmt":"2025-06-11T13:41:59","slug":"financial-aid","status":"publish","type":"page","link":"https:\/\/www.wisconsin.edu\/government-relations\/federal-updates\/financial-aid\/","title":{"rendered":"Financial Aid"},"content":{"rendered":"\n\t\t\t\t\t<div id=\"cfct-build-6848\" class=\"cfct-build grid\">\n\t\t\t\t\t\t<div class=\"row\"><div class=\"col-md-12 cfct-block\">\n\t\t\t<div class=\"cfct-module uwsa-rich-text\">\n\t\t\t\t<div class=\"cfct-mod-content copy\"><h3>Background<\/h3>\n<p><strong>Student Loan Borrower Support Reminder to Universities<\/strong> <em>Updated May 7, 2025<\/em><\/p>\n<ul>\n<li>Department of Education Dear Colleague Letter: <a href=\"https:\/\/www.ed.gov\/about\/news\/press-release\/us-department-of-education-reminds-colleges-and-universities-of-their-obligations-help-struggling-borrowers\">S. Department of Education Reminds Colleges and Universities of Their Obligations to Help Struggling Borrowers<\/a><\/li>\n<\/ul>\n<p>The U.S. Department of Education (Department) issued a\u00a0<a href=\"http:\/\/t1.info.ed.gov\/r\/?id=h2445c17,203035e,202e0b9\">\u2018Dear Colleague Letter\u2019<\/a>\u00a0(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.<\/p>\n<p><strong>Improvements to FASFA Form<\/strong>\u00a0<em>Updated Feb. 6, 2025<\/em><\/p>\n<ul>\n<li>Department of Education News Release: <a href=\"https:\/\/www.ed.gov\/about\/news\/press-release\/us-department-of-education-announces-improvements-fafsar-form\">U.S. Department of Education Announces Improvements to the FAFSA\u00ae Form<\/a><\/li>\n<\/ul>\n<p>The Executive Order requires the Department of Education to modify the current question about \u201cgender\u201d on the 2025\u201326 form to collect data about applicants\u2019 sex.<\/p>\n<p><strong>Restoring Public Service Loan Forgiveness <\/strong><em>Updated Feb. 6, 2025<\/em><\/p>\n<ul>\n<li>Executive Order: EO \u2013 <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/03\/restoring-public-service-loan-forgiveness\/\">Restoring Public Service Loan Forgiveness<\/a><\/li>\n<li>Fact Sheet &#8211; <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/03\/fact-sheet-president-donald-j-trump-restores-public-service-loan-forgiveness\/\">Fact Sheet: Restores Public Service Loan Forgiveness <\/a><\/li>\n<\/ul>\n<p>This Executive Order will redefine eligibility for the Public Service Loan Forgiveness (PSLF) program, specifically excluding from coverage individuals employed by organizations \u201cwhose activities have a \u201csubstantial illegal purpose.\u201d<\/p>\n<h3>UW Communication<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.wisconsin.edu\/government-relations\/2025\/06\/11\/letter-from-president-rothman-to-wi-congressional-delegation-on-federal-budget-impact\/\">Letter from President Rothman to WI Congressional Delegation on Federal Budget Impact<\/a> (June 9 letter expressing concern to the indiscriminate cuts to federal financial aid programs contained within President Trump\u2019s FY26 Discretionary Budget Request)<\/li>\n<li id=\"6873-title\" class=\"item-title\"><a href=\"https:\/\/www.wisconsin.edu\/government-relations\/2025\/05\/19\/university-and-college-leaders-share-concern-on-financial-aid\/\">University and College Leaders Share Concern on Financial Aid<\/a>\u00a0 (May 15 letter from Universities of Wisconsin, Wisconsin Association of Independent Colleges and Universities, and Wisconsin Technical College System)<\/li>\n<li id=\"6710-title\" class=\"item-title\"><a href=\"https:\/\/www.wisconsin.edu\/government-relations\/2025\/04\/09\/6710\/\">President Rothman letter to WI Delegation on Student Financial Aid<\/a>\u00a0(April 9 letter from UW President Jay Rothman)<\/li>\n<\/ul>\n<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"cfct-module uwsa-tabs-accordions\">\n\t\t\t\t<h3 class=\"cfct-mod-title \">Frequently Asked Questions<\/h3>    <div class=\"bs-accordion  bs-accordion-min\">\n        <div id=\"5zy5k\" class=\"panel-group\">\n        \n            <div class=\"panel panel-default \" id=\"panel_how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\">\n    <div class=\"panel-heading\" id=\"heading_how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\">\n        <h4 class=\"panel-title\"><button href=\"#how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\" data-toggle=\"collapse\" class=\"collapsed panel-link\" aria-expanded=\"false\" aria-controls=\"how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\">How will my current or future financial aid be affected by the Executive Orders? <\/button><\/h4>    <\/div>\n    <div id=\"how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\" class=\"panel-collapse collapse\"  role=\"tabpanel\" aria-labelledby=\"heading_how-will-my-current-or-future-financial-aid-be-affected-by-the-executive-orders\" role=\"region\">\n        <div class=\"panel-body copy\">            \n            \n        <p>The Universities of Wisconsin are aware of executive orders relating to financial aid.\u00a0We hope\u00a0that these changes will not affect federal student financial aid\u00a0for the current semester and continue to\u00a0diligently 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\u2019s financial aid office.<strong>\u00a0<\/strong><\/p>                <\/div>\n    <\/div>\n<\/div>\n            <div class=\"panel panel-default \" id=\"panel_how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\">\n    <div class=\"panel-heading\" id=\"heading_how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\">\n        <h4 class=\"panel-title\"><button href=\"#how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\" data-toggle=\"collapse\" class=\"collapsed panel-link\" aria-expanded=\"false\" aria-controls=\"how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\">How will the order to close the Department of Education affect student financial aid, including student loans and Pell Grants?<\/button><\/h4>    <\/div>\n    <div id=\"how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\" class=\"panel-collapse collapse\"  role=\"tabpanel\" aria-labelledby=\"heading_how-will-the-order-to-close-the-department-of-education-affect-student-financial-aid-including-student-loans-and-pell-grants\" role=\"region\">\n        <div class=\"panel-body copy\">            \n            \n        <p>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.<\/p>                <\/div>\n    <\/div>\n<\/div>\n            <div class=\"panel panel-default \" id=\"panel_what-changes-have-been-made-to-student-loan-repayment-plans\">\n    <div class=\"panel-heading\" id=\"heading_what-changes-have-been-made-to-student-loan-repayment-plans\">\n        <h4 class=\"panel-title\"><button href=\"#what-changes-have-been-made-to-student-loan-repayment-plans\" data-toggle=\"collapse\" class=\"collapsed panel-link\" aria-expanded=\"false\" aria-controls=\"what-changes-have-been-made-to-student-loan-repayment-plans\">What changes have been made to student loan repayment plans?<\/button><\/h4>    <\/div>\n    <div id=\"what-changes-have-been-made-to-student-loan-repayment-plans\" class=\"panel-collapse collapse\"  role=\"tabpanel\" aria-labelledby=\"heading_what-changes-have-been-made-to-student-loan-repayment-plans\" role=\"region\">\n        <div class=\"panel-body copy\">            \n            \n        <p>According to the <a href=\"https:\/\/studentaid.gov\/idr\/\">U.S. Department of Education, Federal Student Aid<\/a>, \u201cA 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.\u201d <a href=\"https:\/\/studentaid.gov\/announcements-events\/save-court-actions\">Read additional updates on the SAVE Plan<\/a> court actions and instructions for submitting a loan consolidation PDF application.<\/p>                <\/div>\n    <\/div>\n<\/div>\n            <div class=\"panel panel-default \" id=\"panel_what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\">\n    <div class=\"panel-heading\" id=\"heading_what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\">\n        <h4 class=\"panel-title\"><button href=\"#what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\" data-toggle=\"collapse\" class=\"collapsed panel-link\" aria-expanded=\"false\" aria-controls=\"what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\">What are the impacts of the Executive Order on the Public Service Loan Forgiveness Program?<\/button><\/h4>    <\/div>\n    <div id=\"what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\" class=\"panel-collapse collapse\"  role=\"tabpanel\" aria-labelledby=\"heading_what-are-the-impacts-of-the-executive-order-on-the-public-service-loan-forgiveness-program\" role=\"region\">\n        <div class=\"panel-body copy\">            \n            \n        <p>There are no immediate impacts relating to the Executive Order, <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/03\/restoring-public-service-loan-forgiveness\/\">Restoring Public Service Loan Forgiveness<\/a> (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.<\/p><p>Additional information: <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/03\/fact-sheet-president-donald-j-trump-restores-public-service-loan-forgiveness\/\">Fact Sheet: President Donald J. Trump Restores Public Service Loan Forgiveness<\/a><\/p>                <\/div>\n    <\/div>\n<\/div>\n            <div class=\"panel panel-default \" id=\"panel_what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\">\n    <div class=\"panel-heading\" id=\"heading_what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\">\n        <h4 class=\"panel-title\"><button href=\"#what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\" data-toggle=\"collapse\" class=\"collapsed panel-link\" aria-expanded=\"false\" aria-controls=\"what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\">What does it mean for students who already completed, or plan to complete the Free Application for Federal Student Aid (FAFSA) form with the change made by the Department of Education to modify the question about \u201cgender\u201d on the 2024-25 and 2025\u201326 FAFSA form?<\/button><\/h4>    <\/div>\n    <div id=\"what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\" class=\"panel-collapse collapse\"  role=\"tabpanel\" aria-labelledby=\"heading_what-does-it-mean-for-students-who-already-completed-or-plan-to-complete-the-free-application-for-federal-student-aid-fafsa-form-with-the-change-made-by-the-department-of-education-to-modify-the-qu\" role=\"region\">\n        <div class=\"panel-body copy\">            \n            \n        <p>Students who previously submitted their 2024-25 or 2025-26 FAFSA with either the response option \u201cnonbinary\u201d or \u201cprefer not to answer\u201d 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 \u201cmale\u201d or \u201cfemale\u201d to the revised question. The applicant\u2019s response is solely used for statistical and research purposes by DOE. The applicant\u2019s response does not impact their eligibility for federal student aid.<\/p><p>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\u2019s sex, as schools do not see the responses for this question, and it is not present on the applicant\u2019s ISIR. Because of this, DOE\u2019s revision to the FAFSA does not require a change to the ISIR record layout.<\/p><p>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 \u201cnonbinary\u201d or \u201cprefer not to answer.\u201d The record will not be rejected, and the applicant will not need to complete a revised version of the paper FAFSA.<\/p><p>Source:\u00a0 National Association of State Financial Aid Administrators article, <a href=\"https:\/\/www.nasfaa.org\/news-item\/35645\/How_ED_s_Revised_Options_for_Gender_on_the_FAFSA_Will_Impact_the_Correction_Process\">How ED\u2019s Revised Options for Gender on the FAFSA Will Impact the Correction Process<\/a><\/p>                <\/div>\n    <\/div>\n<\/div>\n            \n    <\/div>\n<\/div>\n\n\n\n\t\t\t<\/div><\/div><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t","protected":false},"excerpt":{"rendered":"","protected":false},"author":2368,"featured_media":0,"parent":6231,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6848","page","type-page","status-publish","hentry","cfct-can-haz-build"],"_links":{"self":[{"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/pages\/6848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/users\/2368"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/comments?post=6848"}],"version-history":[{"count":14,"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/pages\/6848\/revisions"}],"predecessor-version":[{"id":7042,"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/pages\/6848\/revisions\/7042"}],"up":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/pages\/6231"}],"wp:attachment":[{"href":"https:\/\/www.wisconsin.edu\/government-relations\/wp-json\/wp\/v2\/media?parent=6848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}