U.S. Department of Education Issues Proposed Rule to Make Higher Education More Affordable and Simplify Student Loan Repayment
January 29, 2026
The U.S. Department of Education (the Department) today issued a Notice of Proposed Rulemaking (NPRM) aimed at reducing the cost of higher education and simplifying federal student loan repayment, as outlined in President Trump’s historic Working Families Tax Cuts Act (the Act).
Last summer, Congress passed necessary changes to the federal student loan program that will drive down college tuition by equipping institutions with tools to address overborrowing, implementing commonsense loan caps for graduate education programs, and streamlining repayment options for borrowers. The NPRM is the next step in implementing these changes. The proposed rule will be open for public comment for 30 days, after which the Department will process comments and finalize the rule.
“For years, American families have rightfully been concerned about the escalating cost of higher education, the long-term—and often negative—effects of student loan debt, and how their postsecondary education translates into real-world jobs and higher wages. President Trump’s Working Families Tax Cuts Act offers a once-in-a-generation opportunity to lower tuition costs and improve the student loan system to better support borrowers,” said Under Secretary of Education Nicholas Kent. “With consensus reached in support of the Department’s proposed rule, we have a clear path forward to fulfill the President’s promise of making higher education more affordable and ensuring that every professional in America—from teachers and nurses to physicians and clergy—can pursue their careers without taking on debt they may never be able to repay.”
