Student Aid Data System Gets Privacy Act Refresh
Published Date: 4/22/2026
Notice
Summary
The Department of Education updated its system that handles student financial aid info to keep things running smoothly and protect your data. This change affects students, schools, and the government, making sure eligibility and aid details are accurate and secure. You’ve got until May 22, 2026, to share your thoughts before the update goes live on April 22, 2026.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Legacy Borrower Transitional Rule
If you were enrolled in a program on June 30, 2026 and borrowed a Direct Loan for that program before July 1, 2026, you are treated as a “legacy” borrower and may remain eligible under pre-2026 rules for the lesser of a transitional period not to exceed three academic years or the difference between the published program length and the portion you already completed. The legacy status ends if you complete the program, stop enrollment (unless on an approved leave), or stop attending the same institution you were enrolled at on June 30, 2026. A change in an undergraduate student's major does not end the legacy status.
Enforce New Aggregate Loan Limits
The Department will track and enforce revised aggregate loan limits, including tiered unsubsidized caps for graduate and professional students, an aggregate lifetime limit for Parent PLUS borrowers per dependent, and a non-PLUS lifetime maximum aggregate loan limit. These revised caps will be applied and enforced through the Common Origination and Disbursement (COD) System.
PSLF Employer Records and Help Tool
The system will maintain a qualifying-employer database and employer certification information (including authorizing official name, title, phone, email, and digital signature with time/date) so borrowers can use the PSLF Help Tool to find and select qualifying employers and submit PSLF certifications. COD will store PSLF employer data to support Public Service Loan Forgiveness applications.
Institutions Can Set Lower Annual Loan Limits
The COD System will allow financial aid administrators at institutions to record and apply lower annual loan limits for students or parent borrowers so reduced limits are applied consistently across a specific program of study. That means your school can set a lower yearly borrowing cap and the system will enforce it.
Online Credit Checks for PLUS Loans
If you apply for a Federal Direct PLUS Loan, you (or an endorser) can initiate an online credit check through the electronic Direct PLUS Loan application; applicants with adverse credit may still qualify through a qualified endorser or a credit appeal. The COD System will record these credit check results and related documentation.
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Key Dates
Related Federal Register Documents
2026-17239, Education Department General Administrative Regulations
The Secretary of Education proposes to amend the Education Department General Administrative Regulations (EDGAR) and other provisions in 2 CFR parts 3474 and 3485 to update the regulations and better align them with other U.S. Department of Education (Department) regulations and procedures, and to include technical updates from the Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published in the Federal Register on April 22, 2024. The Department intends to finalize these regulations in late 2026.
2026-17001, Accreditation, Innovation, and Modernization: The Secretary's Recognition of Accrediting Agencies: Institutional Eligibility Under the Higher Education Act of 1965, as Amended, Student Assistance General Provisions
The Department proposes to revise the existing accrediting agency recognition regulations at 34 CFR part 602 to implement the directives set forth in Executive Order 14279, Reforming Accreditation to Strengthen Higher Education, and other Administration priorities, align the regulations more closely with statute, and reduce regulatory burden.
2026-15019, Rescinding Portions of the Department of Education Title VI Regulations To Align With the Statutory Text and Conform to Executive Order 14281
The Department of Education is changing its rules to stop punishing unintentional discrimination under Title VI, focusing only on intentional discrimination instead. This update, effective July 24, 2026, will make things clearer, cut costs for schools and organizations getting federal money, and follow a new executive order about fairness and opportunity. If you receive federal funds, these changes affect how you follow civil rights rules.
2026-13286, Accountability in Higher Education and Access Through Demand- Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability
Starting July 1, 2027, colleges must prove their programs help students earn enough money to keep getting federal student loans. This new rule affects schools offering Direct Loans and aims to stop loans for programs where graduates don’t make enough. Some parts kick in earlier on August 31, 2026, so schools better get ready to show they’re helping students succeed in the workforce!
2026-10013, Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Pell Grant Exclusion Relating to Other Grant Aid; and Workforce Pell Grants
Starting July 20, 2026, students and schools will see new rules for Pell Grants thanks to the Working Families Tax Cuts Act. Now, some other grants won’t count against Pell Grant eligibility, and a new Workforce Pell Grant will help students in short, job-focused programs get financial aid. This means more chances for students to get money for education that leads straight to good jobs!
2026-08556, Reimagining and Improving Student Education-Federal Student Loan Program Final Regulations
Starting July 1, 2026, new rules will change how federal student loans work for grad students, parents, and professionals. The Grad PLUS loan is being phased out, and repayment plans are getting simpler with a fresh new income-driven option. Plus, folks who’ve defaulted before get a second chance to fix their loans and get back on track.
Previous / Next Documents
Previous: 2026-07826, Privacy Act of 1974; System of Records
The Department of Education is updating its records system that handles info about students, borrowers, cosigners, and endorsers of federal student loans. This change helps keep your data safe and organized for loan programs under the Higher Education Act. You can share your thoughts by May 22, 2026, before the update goes live on April 22, 2026—no extra costs involved, just smoother service!
Next: 2026-07828, Christmas Tree Promotion, Research, and Information Order; Continuance Referendum
Christmas tree growers and importers who handle 500 or more trees are voting on whether to keep the current rules for the National Christmas Tree research and promotion program. The vote happens by mail or online from May 22 to June 2, 2026. If they say yes, the program continues helping the industry with research and marketing funded by assessments on their sales.