SEHD Impact

Ed Review (04/12/24)

—

by

sehd
in ,

STUDENT DEBT RELIEF

This week, the Biden Administration released initial details of a new set of plans that would provide student debt relief for tens of millions of borrowers across the country.  The plans would bring the total number of borrowers eligible for relief to more than 30 million, including the four million borrowers who have already been approved for debt cancellation by the Administration over the past three years.  The public will have an opportunity to comment on these plans in the coming weeks (President Biden’s announcement video, White House press call transcript, White House fact sheet on providing relief for those disproportionately burdened by student loan debt, and Council of Economic Advisors’ issue brief on the economics of action on student debt).

The plans announced by President Biden in Madison, Wisconsin, and further amplified by Vice President Harris in Philadelphia, Second Gentleman Douglas Emhoff in Phoenix, and Secretary Cardona in New York City are the next step in the regulatory process that began last summer to provide debt relief to as many borrowers as possible as quickly as possible under the Higher Education Act (HEA).

The proposals include:

  • Waiving accrued and capitalized interest for millions of borrowers.  Over 25 million borrowers owe more than they originally borrowed — including many who have made years of payments — due to the interest that accrues on federal student loans.  The Department would cancel up to $20,000 of the amount that a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income.  Furthermore, low- and middle-income borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan or another income-driven repayment plan would be eligible for a waiver of the full amount their balance has grown since entering repayment.
  • Automatically discharging debt for those borrowers otherwise eligible for loan forgiveness under the SAVE Plan, closed school discharge, or other forgiveness programs but not enrolled.
  • Eliminating student debt for borrowers in repayment for 20 years or more.  Over two million borrowers have been repaying their student loans for two decades or longer and still carry some debt.  The Department would waive debt for borrowers with only undergraduate loans if they first entered repayment on or before July 1, 2005, and waive debt for borrowers with any graduate loans if they first entered repayment on or before July 1, 2000.
  • Helping borrowers who enrolled in low-financial value institutions/programs.  The Department would waive debt for borrowers who took on loans to enroll in institutions or programs that lost eligibility to participate in the federal student aid program or were denied recertification because they cheated or took advantage of students.  Plus, borrowers who attended institutions or programs that closed and failed to provide sufficient value — for example, those that leave graduates with unaffordable loan payments or earnings no better than what someone with only a high school diploma earns — would also be eligible for relief.
  • Assisting borrowers who experience hardship in paying back loans.  While these plans and other executive actions to date would help tens of millions of borrowers, there are many other borrowers whose student loans continue to be a barrier for them participating in the economy, accessing economic mobility, or pursuing their dreams.  The Administration will pursue a specific action that is dedicated to canceling debt for borrowers experiencing hardship in their daily lives that prevent them from paying back their loans now or in the future.  This could include automatic forgiveness for borrowers predicted to be likely to default on their loans or through individualized applications where borrowers could detail their financial hardship, such as a child care or medical expense.

The Department also released combined state-by-state totals for approved discharge across four existing student loan forgiveness programs: Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR), Saving on a Valuable Education (SAVE), and Total and Permanent Disability (TPD).

Beyond these programs, the Administration has approved billions in relief for more than a million borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.

Breaking: This morning, the Administration announced approval of $7.4 billion in additional student loan debt relief for 277,000 borrowers under the SAVE Plan, IDR, and PSLF.

 

PROGRESS: FAFSA IMPLEMENTATION

For the latest information related to the 2024-25 Free Application for Federal Student Aid (FAFSA®), bookmark FAFSA Fast News, a new blog on the Federal Student Aid (FSA) web site dedicated to implementation of the Better FAFSA.

Some key excerpts:

  • April 2 — Over the last three weeks, the Department has worked with the Internal Revenue Service (IRS) to investigate and fix three issues with inaccuracies or inconsistencies in tax data for a subset of students.
  • April 4 — In response to feedback from colleges, the Department has decided it will automatically reprocess all FAFSA records affected by [an earlier] announcement, as well as other previously identified issues.
  • April 8 — Today, the Department will release guidance that outlines how state grant agencies can use FAFSA data to support students completing FAFSA forms.
  • April 9 — Yesterday, we began contacting millions of students and their parents who submitted a 2023-24 FAFSA form but have not yet completed a 2024-25 application….  Later today, we will also provide updated information about student corrections and reprocessing of those records affected by processing errors or tax discrepancies.
  • April 11 — We provided guidance for schools about making awards using Institutional Student Information Records (ISIRs) affected by processing errors and tax data inconsistencies discussed [earlier]….  We also highlight…that packaging aid offers will not lead to compliance concerns or program reviews.

As of April 8, more than seven million 2024-25 FAFSA forms have been submitted.  They are being processed as they come in, and information is typically sent to schools within one to three business days.  Also, next week, the Department will encourage students and families to complete the FAFSA form as part of the FAFSA Week of Action (April 15-19) (2024 FAFSA Fast Break resource).

 

BUDGET HEARING

On April 10, Secretary Cardona testified before the House Appropriations Subcommittee on Labor, Health and Human Services, and Education about the President’s Fiscal Year 2025 budget request for the Department of Education.  In his opening statement, the Secretary stressed, “This budget is about making responsible choices, together, to invest in that foundation for American opportunity — and raise the bar for our nation’s future….  It’s also about working together again, as we did in a bipartisan fashion last year, to reject the sort of extreme…cuts proposed by some at the time….  [T]here is, in fact, so much common ground about what matters most for our nation’s students, such as: getting all students to read by third-grade, providing mental health supports in the midst of a youth mental health crisis, opening up career and college pathways so students have more options for rewarding lives and careers, and making higher education more affordable and accessible for those who choose that path.  I know that we can and we will prioritize results over rhetoric.”  (Note: The Secretary also submitted a full statement.)

 

FOCUS: EDUCATION PROFESSIONS

Last week, Secretary Cardona and Acting Secretary of Labor Julie Su traveled to Nevada to lift up the importance of good jobs and high-quality and affordable pathways into education to help address shortages.

In Reno, they spoke with school staff and school district, state, and labor leaders at a community center.  There, as a result of the latest contract negotiated by the Washoe County School Board with the district’s unions and additional matching funds provided by the state, teachers will get a 20% pay raise over the next two years and education support professionals will receive a 19.6% pay raise over the next year.

Then, in Las Vegas, the Secretaries spoke with paraprofessionals training to be teachers at Laura Dearing Elementary School.  As part of a University of Nevada-Las Vegas (UNLV) Paraprofessional Pathways Project, in partnership with the Clark County School District, many paraprofessionals are serving as apprentices, working toward their teaching certificates while learning from and in a mentor teacher’s classroom.  (Note: Don’t miss this video of the Secretaries sitting together on the school’s buddy bench.)

During the trip, the Department of Education joined the Biden Administration’s Good Jobs Initiative — a call to action across the federal government to help shore up access to and retention of good jobs as the foundation of a thriving economy that lifts all people in the nation.  Specifically, the agency issued a set of Good Jobs Principles for Education, describing high-quality working conditions that help create a good job and attract and retain a high-quality education workforce in all roles and at all levels — from early childhood through higher education.

Also, the Departments of Education and Labor announced the availability of new funding and resources to support the expansion of high-quality and affordable pathways into careers in education.  Among them:

  • $25 million in the Teacher Quality Partnership Grant Program, which invests in high-quality, evidence-based educator programs, including teacher residency programs.
  • $15 million for the Augustus F. Hawkins Centers of Excellence Program to support high-quality teacher preparation programs and address teacher shortages, through investments at Historically Black Colleges and Universities (HBCUs), Minority-Serving Institutions (MSIs), and Tribal Colleges and Universities (TCUs).
  • $100 million for a second round of State Apprenticeship Expansion Formula Grants and $95 million for a second round of Apprenticeship Building America Grants.
  • The Educator Registered Apprenticeship (ERA) Intermediary for the K-12 sector, providing supports for states and school districts working to establish Registered Apprenticeship programs for teachers.
  • A State Leadership Academy for states early in their design process or interested in designing or scaling other apprenticeship programs.

 

FREE COVID-19 TESTS

The Department strongly encourages public school districts to stock up on COVID-19 tests in time for summer programming.  The deadline for ordering through the COVID-19 Testing Supply Program is May 1 at 11:59 p.m. Eastern Time.  Through this program, districts may order over-the-counter rapid antigen COVID-19 self-tests free of charge for their students, families, staff, and school community.  (Note: The Centers for Disease Control and Prevention [CDC] issued March 1 guidance on respiratory viruses.)

 

ODDS AND ENDS

The White House welcomed many special guests for this year’s Easter EGGucation Roll (see also Secretary Cardona’s video).

  • ICYMI, watch the virtual convening.

 

QUOTE TO NOTE

“There’s nothing more important to the Department of Education.  We’re working on [the FAFSA] around the clock because we want to make sure our students have the information they need to make informed decisions….  I do empathize with the challenges and frustrations that folks are feeling.  We need to do better, and we’re going to get better.”

— Secretary of Education Miguel Cardona (4/10/24), testifying on the President’s FY 2025 budget request

 

UPCOMING EVENTS

The next session in the White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans’ Power Up series is set for April 29 and 30 in Denver.  These events directly engage the Black community, grassroots organizations, national stakeholders, and federal agencies on important issues.

The Department’s Office of English Language Acquisition (OELA) is hosting a series of dual language webinars — “The 3 W’s of Dual Language Education for State, Local, and Site Leaders: What, Why, and How” — featuring expert guidance and resources and offering insights for administrators at every level.  Part 1 is April 16 at 1 p.m. ET, and Part 2 is April 30 at 1 p.m. ET.

The 2024 Federal Student Aid (FSA) Training Conference for Financial Aid Professionals, scheduled for December 3-6, will again be delivered virtually.