The federal government is making moves that will reshape how colleges operate and how families pay for school.
This week, the Education Department released sweeping draft regulations to overhaul the accreditation system, while colleges (especially HBCUs) are scrambling to figure out how to fill funding gaps created by new Parent PLUS loan caps.
Meanwhile, the Labor Department proposed a rule that could change what's inside your 401(k), and a federal judge put the brakes on the administration's push to collect race-based admissions data from colleges.
Here’s a quick look at the most important stories shaping higher education and student finances this week for April 10, 2026.
🎓 Headlines at a Glance
- The Education Department released draft rules to overhaul the college accreditation system.
- HBCUs and other colleges are scrambling as Parent PLUS loan caps create real funding gaps.
- A proposed Labor Department rule would open 401(k) plans to alternative investments like private equity and crypto.
- A federal judge blocked the administration's demand for race-based admissions data from public colleges in 17 states.
- The Education and Labor Departments announced the first grant competitions under a new education-workforce partnership.
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1. Education Department Releases Draft Rules to Overhaul College Accreditation
The U.S. Department of Education released draft regulations (PDF File) on April 7 that would significantly restructure how college accreditors operate. The proposed changes would make it easier for new accrediting agencies to gain federal recognition, require accreditors to set minimum benchmarks for student achievement (including return on investment), and mandate standards around "intellectual diversity" among faculty.
One provision stands out for students and families: the draft would require colleges to presume the transferability of credits earned at other institutions toward general education requirements — not just as electives. Colleges have long guarded transfer credit decisions as a matter of institutional autonomy, and this proposal is expected to face strong pushback.
Any final rule could take effect no earlier than July 1, 2027.
➡️ Impact: Accreditors are the gatekeepers for federal student aid — including Pell Grants and federal student loans. Changes to how they operate could affect which schools qualify for aid, how program quality is measured, and whether credits transfer more easily between institutions. The credit transfer provision alone could save students thousands of dollars in duplicate coursework.
2. Parent PLUS Loan Caps Are Already Creating Funding Gaps at Colleges
With the $20,000 annual cap on Parent PLUS loans set to take effect July 1 for new borrowers, colleges are now confronting the reality of how to fill the gap and some are finding it won't be easy.
According to reporting by the Washington Post, HBCUs are facing particularly steep challenges. Research shows that 23% of HBCU families have used Parent PLUS loans, compared to about 8% of all students' families, and those families relied on the loans to cover more than 30% of college costs. A report from The Century Foundation warned that the new borrowing limits will likely push more students toward private loans and prevent some from enrolling at all, particularly in high-cost programs like medical school, where the median cost of attendance exceeds $280,000.
➡️ Impact: Families sending a student to college this fall under the new rules will need to plan for the gap between what Parent PLUS now covers ($20,000/year and $65,000 lifetime) and the actual cost of attendance. Private loans, additional scholarships, and school-specific financing are becoming more important than ever.
3. Labor Department Proposes Opening 401(k) Plans to Alternative Investments
The U.S. Department of Labor proposed a rule on March 30 that would create a safe harbor for retirement plan fiduciaries to include alternative investments (such as private equity, private credit, real estate, infrastructure, and cryptocurrency) in 401(k) plan lineups. The proposal followed a Trump administration executive order issued in August 2025 directing the DOL to expand access to these asset classes for retirement savers.
The rule doesn't mandate that any plan add alternatives. Instead, it establishes a process-based framework so that plan sponsors who do choose to offer them can do so with reduced litigation risk. Participants would typically access these investments through vehicles like target-date funds, not as standalone options.
Industry reaction has been mixed. Some analysts remain skeptical that the rule will lead to widespread changes until courts confirm the litigation protections hold up. Public comments are open through June 1, 2026.
➡️ Impact: If adopted, this could eventually change the investment options available in your workplace retirement plan. For younger investors especially, it's worth understanding what alternative investments are, how they differ from traditional stock and bond funds, and whether they belong in a long-term retirement strategy. Nothing changes immediately, but this is worth watching.
4. Federal Judge Blocks Race-Based Admissions Data Collection in 17 States
A federal judge in Boston issued a preliminary injunction on April 4, temporarily blocking the Trump administration from requiring public colleges in 17 states to submit detailed admissions data broken down by race and sex.
U.S. District Judge F. Dennis Saylor IV found that while the government likely has the authority to collect the data, the process was rolled out in a "rushed and chaotic manner." The administration had required colleges to submit data retroactively for seven years, with potential Title IV penalties (including the loss of federal student aid eligibility) for schools that failed to comply.
The ruling applies only to public institutions in the 17 plaintiff states.
➡️ Impact: For students and families, this fight may seem procedural, but the records at stake are personal: admissions outcomes tied to race, sex, GPA, test scores, and Pell Grant status. The broader question is how far the federal government can go in using Title IV funding as leverage over colleges' admissions practices.
5. Education and Labor Departments Announce First Grant Competitions Under New Partnership
On April 8, the U.S. Departments of Education and Labor jointly announced the first grant competitions under a new Elementary and Secondary Education Partnership. The competitions are for the Teacher and School Leader Incentive Program and the Innovative Approaches to Literacy Program for Fiscal Year 2026.
While these grants target K-12 education, the partnership signals the administration's broader push to tie education more closely to workforce outcomes — a theme that is already reshaping how higher education programs are evaluated and funded.
➡️ Impact: The growing emphasis on workforce alignment is filtering into how colleges are measured, how accreditors set standards, and ultimately how students choose programs. For families evaluating college options, return on investment is becoming an increasingly official metric — not just a talking point.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.