Given the significant changes proposed in the NPRM and the substantial impact on institutions and the higher education sector as a whole, all interested parties are strongly encouraged to submit written comments

On January 29, 2026, the U.S. Department of Education published a notice of proposed rulemaking (NPRM) to amend regulations for federal student loan programs based on the recent enactment of HR 1 (P.L. 1119-21), sometimes referred to as the “One Big Beautiful Bill Act” (the “Reconciliation Act”). The Department established two negotiated rulemaking committees for the implementation of the Reconciliation Act. The first committee, the Reimagining and Improving Student Education (RISE) Committee, reached consensus on November 6, 2025, on the entire package of loan-related changes, including federal student-loan limits, repayment plans and the elimination of the Graduate/Professional PLUS Loan program.

At this point, the public has the opportunity to submit comments to the Department for its review and response prior to finalizing a final rule. The comment period is open through March 2, 2026.

Given the significant changes proposed in the NPRM and the substantial impact on institutions and the higher education sector as a whole, all interested parties are strongly encouraged to submit written comments. The Department invites commenters to “explain why [they] agree or disagree with the proposed regulatory text and support these reasons with data-driven evidence.”

Areas of interest for public comment, among others, include:

• Elimination of the Grad PLUS Loan program;
• New annual and aggregate loan limits;
• A new definition for “professional degree” programs for which borrowers will be able to access higher loan limits;
• New lifetime maximum aggregate limits;
• New reduction of annual loan limits for students enrolled less than full time; and
• Changes to loan deferment (including unemployment and economic hardship), forbearance and repayment options.

In our previous Alert, we outlined why the public comment period is a significant stage of the rulemaking process. It is the basis for building a record supportive or critical of the proposed rules under review and is the foundation for any future administrative or legal appeal of recognition decisions. The Administrative Procedure Act requires a federal agency to “consider all relevant factors raised by the public comments and provide a response to significant points within.” Chamber of Com. of U.S. v. SEC, 85 F.4th 760, 774 (5th Cir. 2023). Additionally, the agency must consider these comments and provide a "concise general statement of [its] basis and purpose" in the final rule.

Comments should address specific legal and policy deficiencies in the proposed language, including describing unintended consequences or onerous operational impacts. Experienced counsel can provide advice on drafting effective comments. As noted above, if the proposed rule is challenged in court, the administrative record (including concerns raised in the public comment) can be used to form the primary basis for judicial review. 

Comments on the proposed rules are submitted through the Federal eRulemaking Portal at regulations.gov and must submitted by 11:59 p.m. Eastern on Monday, March 2, 2026.

About Duane Morris

The Duane Morris Higher Education Group has experience guiding associations, institutions and other interested parties in identifying key issues at stake in rulemaking proceedings, preparing substantive input for consideration by negotiating committees, framing and drafting public comments and holding constructive meetings with government officials during the rulemaking process.

For More Information

If you have any questions about this Alert, please contact Anthony J. Guida Jr., Edward Cramp, Katherine D. Brodie, Kristina Gill, Jen DeMay, Matthew Steinway, any of the attorneys in our Higher Education Group or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.