Student Aid Policy

The proposed ban comes as more states are restricting colleges and universities from withholding transcripts when a student owes money to the institution. The planned federal ban would only apply in some cases.

Biden administration wants to add a host of new conditions to the agreements that allow colleges and universities to receive financial aid. Critics say those proposals need more work.

President Biden has said he would veto the resolution, while some said it would cause “irreparable damage” to the federal student loan system.

Informal negotiations over how to expand the Pell Grant to job-training programs have begun but lawmakers face uphill challenge in getting a bill through Congress.

Republicans once again used the hearing, which revealed little new information about the actual policies, to decry the administration’s efforts to overhaul the student loan system.

Critics argue that the earnings test, which is based on the average earnings of a high school graduate with no college, is unfair. But supporters say it provides key information.

The rule adds more requirements for all postsecondary nondegree programs and all programs at for-profit institutions. Education Department officials hailed the regulations as the strongest ever gainful-employment rule.

Experts and advocates worry that the Education Department lacks adequate funds and won’t be able to prevent high rates of default and delinquency when student loan payments eventually turn back on.