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Research Report

Federal Policy Primer and Discussion Guide: Financial Aid

A guide to help education leaders navigate the 2025 presidential transition and related federal changes

The Trump administration’s proposed changes to student aid and loan policies, including restrictions on Public Service Loan Forgiveness (PSLF) and disruptions to Income-Driven Repayment (IDR) plans, could significantly impact students’ perceptions of college affordability, and workforce reductions at the Department of Education (ED) may exacerbate these challenges. In the face of these federal policy shifts, higher ed institutions must act decisively to stabilize enrollment, help students navigate financial aid changes, and prepare for broader trends shaping the financial aid landscape.

Download our policy primer for help unpacking the following topics:

  • Changes to the financial aid landscape: What changes to student aid and student loan management have occurred thus far
  • Possible impact on student aid programs and tuition affordability: How students’ ability to afford and enroll in college will be impacted by student aid changes
  • Potential impact on institutional risk-sharing requirements: Which tax and risk-sharing requirements for institutions are under consideration for reform
  • Steps higher ed leaders can take to prepare for financial aid changes: Key questions and discussion prompts for cabinet members and other leaders

Download the Primer

Strategic questions every team should be discussing right now

As you review this policy primer and consider the implications of proposed financial aid changes, use the following discussion questions to inform your institution’s next steps. We suggest engaging your cabinet, along with key stakeholders such as the Vice President of Enrollment and/or Financial Aid, the Chief Business Officer, Legal Counsel, Chief Advancement Officer, Provost, and Vice President of Student Affairs.

  • How can we effectively advocate for and influence the outcome of proposed policy changes through lobbying efforts and collaborations with other institutions to protect student affordability and institutional stability?
  • What are the key components of our financial aid portfolio (e.g., federal and state grants, subsidies, endowments), and how might federal or state-level policy changes impact these funding sources or student eligibility?
  • How can we develop comprehensive strategies to help students understand the implications of financial aid and loan changes, improve their sense of affordability, and mitigate potential impacts on enrollment and financial decision-making?
  • Are our systems, processes, and financial aid teams adequately prepared to adapt to new transparency requirements? What proactive steps can we take to ensure readiness?
  • How can we prepare for potential changes to risk-sharing requirements, such as enhancing data collection methods or identifying alternative funding sources to minimize institutional liability?

Want more guidance on how to prepare for what’s next? To learn about EAB’s scenario planning workshop, contact your Strategic Leader or email [email protected].

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