Final Session of Reimagining and Improving Student Education (RISE) Committee Federal Negotiated Rulemaking Takes Place This Week Despite Continued Federal Government Shutdown

Overview
Beginning this morning at 9:00 AM ET, the U.S. Department of Education (Department) and the group of nine Non-Federal negotiators representing key constituencies will begin the second, and final, session of negotiations seeking to implement statutory changes to the Title IV, HEA programs included in Pub. L. 119-21, known as the One Big Beautiful Bill Act (OB3). The Department and the Non-Federal Negotiators who are part of the Reimagining and Improving Student Education (RISE) Committee (Committee) are tasked with preparing regulations for the Federal student financial assistance programs – specifically changes in the law related to the Federal student loan programs – authorized under Title IV of the Higher Education Act (HEA) of 1965, as amended (HEA).

During the first session of the RISE Committee, held September 29 – October 3, 2025, the Committee reviewed a series of initial discussion draft proposals provided by the Department. The Non-Federal negotiators provided comments, feedback, concerns, and recommendations in the form of various alternative regulatory language, which is available for review on the Department’s Negotiated Rulemaking for Higher Education 2025 (www.ed.gov/laws-and-policy/higher-education-laws-and-policy/higher-education-policy/negotiated-rulemaking-for-higher-education-2025-2026) webpage.

While most of the proposed regulatory proposals set forth by the Department were supported by the Non-Federal negotiators, Committee members did seek revisions to key portions of the proposed discussion drafts in which one or more constituency sought changes to the Department’s proposals. Key topics where there were concerns and disagreements included the definition of professional programs, . And there were other areas in which various constituencies offered proposals for consideration that were offered to help provide benefits to borrowers and ease the transition into the new regulations (e.g. borrowers timeframe to begin rehabilitation of a defaulted loan).

At the conclusion of the first session the Department agreed to take into consideration all of the discussions, proposals, and requests of the Non-Federal negotiators and to provide updated discussion drafts in advance of the second and final meeting to be held November 3 – 7, 2025.

Last week, the Department shared updated documents with the Non-Federal negotiators which included a set of sixteen individual discussion drafts detailing the starting point for the week’s second round of negotiations.

Unfortunately, due to the government shutdown, the discussion drafts have not yet been posted to the Department’s website. However, CSPEN is in the process of posting all of the documents to our website and will have them available for review and download today. In the meantime, we wanted to provide the community with a very brief summary and status update on each issue as the week of negotiations get underway.

Our hope is that you will find this information helpful as the starting point for the week ahead and we plan to update the status of each of the sixteen discussion drafts at the conclusion of each day, providing you with an update each morning. You can also follow along throughout the negotiations, as the in-person meetings taking place within the Department are also being live streamed and can be accessed by registering here (web.cvent.com/event/654538aa-39d2-479e-a3dd-46648b4a2752/regProcessStep1) .

CSPEN Quick Takes On Each Issue/Discussion Draft

Discussion Draft #1 – Section 674.39 Loan Rehabilitation
Original Discussion Draft: The proposed language establishes the ability for a borrower to rehabilitate a defaulted loan twice beginning on or after July 1, 2027.
Updated Discussion Draft: The proposed language had been revised from the original proposal, but there are no substantive changes.
Status: The proposal mirrors the statutory language and is straightforward and unambiguous. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached. We do note that recommendations were provided during the first session to provide borrowers with the ability to begin the rehabilitations process ten months prior to the July 1, 2027 date, thereby ensuring that the benefits would trigger sooner for the borrower. We will monitor the outcome of this prior discussion during the second session.

Discussion Draft #2 – Section 682.405 Loan Rehabilitation Agreement
Original Discussion Draft: The proposed language clarifies that a borrower may only obtain the benefits of suspension of administrative wage garnishment once on defaulted loans rehabilitated prior to July 1, 2027 (existing regulatory guidance) and once for each of the two opportunities to rehabilitate a defaulted loan on or after July 1, 2027.
Updated Discussion Draft: The proposal is unchanged from the language proposed in the original discussion draft.
Status: The proposal mirrors the statutory language and is straightforward and unambiguous. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #3 – Section 682.215 Income-based Repayment
Original Discussion Draft: The proposed language makes a series of revisions including the elimination of partial financial hardship eligibility, defining “applicable amount” and aligning aggregate monthly payment requirements among other things.
Updated Discussion Draft: The proposed language had been revised from the original proposal, but there are no substantive changes.
Status: While CSPEN believes that these proposals are non-controversial, the broader issues related to the shift to the new singular RAP program and the details on the transition are a major area of discussion that must be fully hammered out. While this proposal is not likely to be opposed, it will have be taking in context with the rest of the regulatory discussions and proposals.

Discussion Draft #4 – Section 685.102 Definitions
Original Discussion Draft: The proposed language adds four new definitions: 1) Expected Time to Credential; 2) Graduate Student; 3) Professional Student and 4) Program Length.
Updated Discussion Draft: The proposed language has been changed to remove specific criteria related to the professional student definition.
Status: One of the key areas of concern raised during the first session were the establishment of the definitions of graduate and professional student in relations to their program of study. More specifically, the concerns focused on the limited list of professional licenses the Department has provided in the proposed regulatory framework. The Non-Federal negotiators expressed concerns with the lack of recognition that other definitions have provisos for the inclusion of additional professional licensed programs and degrees important to society which are not specifically referenced. The Non-federal negotiators sought inclusion of other programs, but the Department expressed the desire to limit the list to those noted, discuss additions in a future negotiated rulemaking, and has not changed their view or the language. CSPEN anticipates that this issue may well be one in which consensus may not be achieved.

Discussion Draft #5 – Section 685.200 Borrower Eligibility
Original Discussion Draft: The proposed language eliminates PLUS Loan eligibility for graduate and professional students.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language directly mirrors the statutory directive to eliminate graduate and professional students PLUS Loan eligibility. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Draft #6 – Section 685.201 Obtaining a Loan
Original Discussion Draft: The proposed language details the conditions in which a graduate or professional student are eligible to apply for a PLUS Loan to complete their existing studies.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statutory directive, providing graduate and professional students already enrolled to have access to PLUS Loans under specific terms and conditions. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #7 – Section 685.203 Loan Limits
Original Discussion Draft: The proposed language establishes the various annual and aggregate loan limits for graduate and professional students, PLUS Loans for undergraduate students, maximum loan limits, the determination of loan eligibility for less than full-time enrollment, and more.
Updated Discussion Draft: The Department has revised the regulatory language related to the calculation used to determine pro-rated loan eligibility for less than full-time students and other portions of the proposed language.
Status: The loan limit provisions mirror the statute, but there are differences of opinion regarding the interpretation of the statutory provisions requiring the proration of loan eligibility for less than full-time enrollment. Discussions during the first session sought to distinguish between various types of programs. CSPEN believes that the Non-Federal negotiators will continue to express concerns with the proposed changes and that this discussion draft will take additional time to try and come to agreement upon.

Discussion Draft #8 – Section 685.204 Deferment
Original Discussion Draft: The proposed language repeals students’ eligibility to receive unemployment deferments or economic hardship deferments on loans disbursed on or after July 1, 2027.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #9 – Section 685.205 Forbearance
Original Discussion Draft: The proposed language establishes the period of forbearance for loans disbursed on or after July 1, 2027 as a period not to exceed nine months within a twenty-four-month period.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #10 – Section 685.208 Fixed Payment Repayment Plans
Original Discussion Draft: The proposed language repeals and replaces the existing fixed loan repayment program with a new version as prescribed in law.
Updated Discussion Draft: The language has been modified and updated based upon discussions throughout the first session.
Status: This discussion draft will be a major portion of the discussions as it related to the establishment of one of the two new repayment plans beginning on July 1, 2026 forward. The details of the winddown of the existing programs, transition, and future of the new program are the crux of these negotiations.

Discussion Draft #12 – Section 685.210 Choice of Repayment Plan
Original Discussion Draft: The proposed language establishes the ability of a borrower to select/choose between one of two repayment plans – a tiered standard repayment plan or the newly established Repayment Assistance Plan (RAP). The proposal covers forms of transition and consolidation that borrowers have the ability to decide to use and focuses on the transition beginning in July 1, 2026.
Updated Discussion Draft: The language has been modified and updated based upon discussions throughout the first session.
Status: As noted above, the devil is in the details and these details will be front and center throughout the week in CSPEN’s estimation.

Discussion Draft #13 – Section 685.211 Miscellaneous Payment Provisions
Original Discussion Draft: The proposed language establishes the statutorily mandated requirements that a borrower is required to make a payment greater than $0 on her/his loan debt.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #14 – Section 685.219 Public Service Loan Forgiveness Program
Original Discussion Draft: The proposed language makes changes limiting eligibility under PSLF consistent with the new statute.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #15 – Section 685.220 Consolidation
Original Discussion Draft: The proposed language prescribes the options a borrower has to consolidate her/his loan both prior to and after July 1, 2028 – aligning the requirements with the ability to consolidate in the RAP.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

Discussion Draft #16 – Section 685.221 Alternate Repayment Plan
Original Discussion Draft: The proposed language enables the Secretary of Education to provide borrowers with an alternate repayment plan who has not received a Direct Loan on or after July 1, 2026 and who demonstrates to the Secretary’s satisfaction that the terms and conditions of the existing repayment plans are not adequate to accommodate the borrower’s exceptional circumstances.
Updated Discussion Draft: No changes have been made to the original discussion draft proposal.
Status: The language mirrors the statute. CSPEN does not foresee any concerns with this proposal and assumes tentative agreement will be reached.

What’s Next
As noted above, CSPEN will provide summaries providing daily updates under “Status” for each of the sixteen discussion drafts, including “temperature checks” which are usually used by the facilitator to determine whether or not the draft either has or has not been able to be constructed in a manner which would not be opposed, or to determine what issues remain preventing support.

Stay tuned as we provide you with daily updates on these important negotiations AND look for other emails this week detailing the current status in Washington with regards to the on-going government shutdown AND the prospect of whether or not the next vitally important round of federal negotiated rulemaking developing the regulatory framework on institutional and programmatic accountability, the Pell Grant Program – and Workforce Pell, and other changes to the Title IV, HEA programs will begin as scheduled in December.