Washington Update

FAFSA Updates 
In a series of announcements last week, the U.S. Department of Education (ED) provided updates on FAFSA data sharing, reprocessing, and tax data issues.  

• Corrections and Reprocessing: On April 9, ED made student-initiated corrections available. ED has now processed over 100,000 corrections and has begun reprocessing applications that contained known issues as outlined in an Electronic Announcement. ED also shared a May 1 target date for reprocessing forms affected by tax data issues.  

• Data Sharing: Beginning April 29, state education grant agencies will be able to sign updated agreements to share FAFSA data with TRIO, GEAR UP, Native education organizations, and nonprofit college access organizations to help students complete FAFSA. The new agreement will also allow state agencies to use FAFSA data to inform students of their eligibility for means-tested benefits such as Medicaid, Child Tax Credit, the Affordable Care Act, and the Supplemental Nutrition Assistance Program (SNAP).  

APLU understands the tremendous challenges the difficult FAFSA rollout has created for students, their families, and institutions. The association is in regular contact with ED and continues to push for an expedient resolution to challenges while underscoring concerns from member institutions. APLU members can follow the latest updates and resources on FAFSA at the Federal Student Aid website here.  

U.S. Department of Education Releases Final Title IX Regulations 
On April 19, the U.S. Department of Education (ED) issued final Title IX Rules related to sex discrimination and sexual violence with an effective date of August 1, 2024. The administration’s proposed Title IX regulation specific to transgender student athletes has not yet been finalized. APLU submitted comments to ED when the regulations were first proposed in 2022 and participated in several meetings and roundtables with the Biden administration. The final regulations are outlined in a fact sheet and summary, alongside resources ED provided. 

U.S. Department of Labor Releases Final Overtime Rule  
On April 23, the U.S. Department of Labor issued its final Fair Labor Standards Act (FLSA) overtime rule. The final rule increases the minimum salary threshold for “white collar” exemptions to the FLSA overtime pay requirements from $35,568 to $43,888, effective July 1, 2024. The threshold will then increase to $58,656 on January 1, 2025.  

Beginning on July 1, 2027, and every three years after, the threshold will be set to the 35^th percentile of salaried wages for workers in the lowest-earning Census Region. Importantly, the proposal does not make changes to the duties requirements for FLSA overtime exemptions or the teaching exemption. Additional information can be found in the Department of Labor’s press release and FAQ document on the regulation. 

APLU previously submitted comments to the agency last year when the rule was initially proposed.  

APLU Comments on the U.S. Department of Education’s Gainful Employment/Financial Value Transparency Implementation 
APLU submitted a response to ED’s request for comment on the implementation challenges associated with the Gainful Employment and Financial Value Transparency regulations. The letter requests a further extension to the October 1, 2024 implementation date and reporting deadline. Citing the immense regulatory workload institutions are currently facing, the letter notes the first extension leaves inadequate time to prepare. Building upon APLU’s previous comments on the proposed rule, APLU provides recommendations for ED to minimize the burden of compliance and describes the challenges associated with developing internal systems to collect and report the required data. 

In 2023, ED announced its final gainful employment and financial value transparency regulations. ED states the regulations are designed to increase transparency around financial costs and earnings outcomes while applying accountability to applicable programs that fail certain thresholds. 

APLU Joins Higher Education Community Letters on Appropriations Advocacy for Institute of Education Sciences (IES), Postsecondary Student Success Grants (PSSG) 
APLU joined a higher education community letter to the lead House and Senate appropriators for the Labor, Health and Human Services, Education and Related Agencies funding bill, requesting at least $900 million for the Institute of Education Sciences in FY2025. The Institute of Education Sciences is a nonpartisan branch of the U.S. Department of Education that provides “information on the condition and progress of education, educational practices that support learning and improve academic achievement and access to educational opportunities for all students, and the effectiveness of federal and other education programs.” APLU members undertake an array of research funded by IES to further an understanding of how students learn and support their success. 

In addition, APLU joined a higher education community letter urging appropriators to support at least $100 million for the Postsecondary Student Success Grant (PSSG) program in FY25. PSSG provides competitive grants to institutions to implement and scale up evidence-based strategies that help high-need students persist and complete college. APLU members have made up the majority of Postsecondary Student Success Grant winners in the FY22 and FY23 competitions thus far.  

APLU successfully advocated to provide another $45 million for PSSG in the final FY24 spending bill and endorsed bipartisan legislation to provide long-term authorization for the program. APLU has supported its members in applying for these grants by developing an evidence-based practices toolkit and webinars. APLU resources are available upon request.