While there have been calls to reduce or eliminate the U.S. Department of Education, any changes would require congressional action and could take time (years?) to implement. As of now, Title IV funding—including Pell Grants, Direct Loans, and campus-based aid—remains intact, and institutions are still required to follow current federal regulations. Institutions should prepare for possible funding delays, or potential policy changes, and ensure strong internal financial aid processes.

Yes. Institutions participating in Title IV programs must continue to comply with audit requirements under the Higher Education Act and related ED regulations. This includes annual compliance audits and financial statement audits, even amid this uncertainty.

Dismantling the Department would require significant legislative changes. If it were to occur, regulatory responsibilities could shift to other federal or state agencies. However, Title IV programs are rooted in federal law, and until new legislation is passed, institutions must continue to comply with existing guidance and reporting requirements.

Yes, unless they are formally repealed or delayed. New regulations (such as those finalized in 2023–2024) are currently set to go into effect and must be followed. Institutions should prepare for compliance regardless of political adjustments, as enforcement remains active until otherwise noted.

No. Institutions should continue implementing regulations that have already been finalized and scheduled for enforcement. Noncompliance could still result in findings or liabilities during audits and program reviews. This includes planning for upcoming implementation of rules such as the final regulations published earlier this year that will go in effect July 1, 2026, unless they are formally delayed or rescinded. Federal Register – Final Rules (January 3, 2025) Institutions are encouraged to do what you’ve always done — develop internal timelines, assess processes, and prepare staff training or procedural updates to ensure readiness.

Program reviews, audits, and enforcement actions remain active and enforceable. Institutions should continue to maintain documentation, ensure policies and procedures are current, and follow best practices for Title IV administration. However, due to significant reductions in the Department of Education’s workforce, institutions may experience longer response times and delays in review processes or communication. Staying organized and proactive will be even more important during this time.

Due to staffing shortages, delays are to be expected. If you haven’t received a response within 30–45 days, follow up through the original channel, confirm your submission was complete, and document all communication. When needed, consult your auditor and/or legal counsel, and proceed based on existing guidance and best practices.

Even if you’re experiencing delays or unresponsiveness, required updates—like changes to locations, programs, key personnel, ownership, or third-party servicers—must still be attempted within expected timeframes.

Here’s what to do:

• Email your case team with supporting documentation and request that the E-App be unlocked.
• Submit a help request through FSA Partner Connect.
• Document, document, document—save copies of all emails, help tickets, error messages, and attempts to comply.

While response times may be slow, these steps demonstrate your institution’s good-faith effort to meet compliance obligations.

Stay informed through reliable sources like Federal Student Aid (Knowledge Center), NASFAA, state and regional associations, as well as legal and accounting advisors. Want monthly updates from us delivered directly to your inbox? Sign up for our newsletter here!

Change is nothing new in higher education—regulations evolve regularly, and institutions have always had to adapt. While the current uncertainty may feel heightened, we’re continuing to do what we’ve always done: monitor federal developments closely, interpret emerging guidance, and help institutions stay compliant. We offer timely updates, practical tools like checklists and templates, individualized consulting, and audit support to ensure you’re prepared for whatever comes next.