Navigating Higher Ed’s Policy Shifts in a Post-Election Era

After months of anticipation, the 2024 election in the U.S. is over – and higher education leaders now have a general sense of what the Federal government will look like for the next two years.  It is evident that U.S. higher ed faces a pivotal moment of uncertainty, with potential shifts in policy, funding, and student support that could redefine the future of campuses nationwide.

What is the future of student loan forgiveness and Federal financial aid, in general?  What changes will be made to the U.S. Department of Education in a new administration?

In a recent episode of Mastering the Next, Dr. Ray Lutzky, VP of Strategic Partnerships at Element451, is joined by Dan Currell, former Deputy Under Secretary at the U.S. Department of Education during the first Trump administration, to discuss financial aid challenges, student loan policy, and evolving regulatory landscapes in higher education. 

Their wide-ranging conversation addressed complex topics such as FAFSA issues, potential changes in financial aid policies depending on election outcomes, and innovative financial solutions for international students, offering a comprehensive view of the challenges and opportunities that lie ahead in the next Republican administration.

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Key Takeaways From The Episode 

• FAFSA's Challenges and Opportunities: Despite being a free resource, FAFSA’s rollout challenges have complicated the financial aid process, highlighting the need for more efficient solutions – this not only impacted students, but cost colleges and universities millions of dollars, resulting in budget shortfalls and cuts nationwide.
• Potential Futures after the Election: The outcomes of the 2024 election will directly influence financial aid policy, especially around loan forgiveness programs, repayment structures, and federal agency priorities in higher ed, with the change in government leaving these issues up in the air, for now.

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The FAFSA Complications and Their Impact

Dan begins by outlining the 2024 FAFSA application difficulties that sparked frustration among students and administrators alike. While FAFSA remains free, issues in the application’s technology delayed (or prevented) aid processing, complicating access to funds for students nationwide. Dan empathizes with the administrators caught in these struggles, noting that while many students and families face barriers, the ultimate challenge lies in the complex Federal systems that need revamping.

He suggests that fixing FAFSA requires coordinated government and contractor efforts, with an emphasis on trust and communication with educational institutions. Currell hopes that a revamped approach could simplify FAFSA and help repair relationships between Federal agencies and higher education institutions.

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Potential Futures After the Election

Dan highlights how the 2024 election results will bring significant shifts in financial aid policies, especially in loan forgiveness and repayment structures. 

The new Republican administration might aim to reduce Federal involvement in higher education, potentially scaling back initiatives like The Saving on a Valuable Education (SAVE) income-driven repayment (IDR) plan. Dan points out that more conservative policies may advocate for local control and could reshape programs like Title IX and borrower defense, affecting institutional accountability. However, Dan believes some proposals—like abolishing the U.S. Department of Education — are largely political talking points, as structural Federal roles in higher ed are likely to remain.

Dan also raises an important question on the core issue of affordability: How should the U.S. sustainably fund higher education in the long term? He emphasizes that addressing this question will be critical, regardless of the administration in power.

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Navigating the Regulatory Landscape Post-Election

Ray and Dan discuss how future regulatory changes could affect undergraduate and graduate programs. Dan notes that policy changes like Title IX regulations and financial aid adjustments will depend on both political and legal landscapes, highlighting that shifts in state versus federal control could significantly impact higher education administration.

Dan also encourages institutional leaders to stay informed and adaptable to regulatory shifts, reminding them that sustainable funding and strategic planning are crucial to ensuring their institutions can thrive in a shifting political and financial environment.

Institutions that prioritize flexible, student-centered approaches and cultivate strong partnerships will be best positioned to meet the challenges and leverage the opportunities ahead. Now more than ever, staying engaged, informed, and ready to pivot will be essential to sustaining success in a rapidly changing educational environment.

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Make sure to listen to the full episode of Mastering the Next with Dan Currell and host Dr. Ray Lutzky on the Enrollify network.