NASFAA Mention: Education Department Announces It Won't Punish Colleges For Reconsidering Student Aid

"The U.S. Department of Education moved this week to make it easier for colleges to reconsider and potentially increase financial aid for students who have lost jobs or family income in the economic crisis. The move comes after NPR reported in June that the department had shelved guidance meant to encourage college aid administrators to exercise what's known as 'professional judgment' and reconsider aid for students whose finances have changed," NPR reports.

"... In 2009, in response to the Great Recession, the Obama administration assured schools they would not be punished for helping students. In recent months, with job losses mounting, college financial aid administrators began asking if that 2009 guidance was still active, said Justin Draeger, president of the National Association of Student Financial Aid Administrators.

The Department of Education quietly addressed that question in late May during a call with stakeholders. According to multiple sources familiar with the call, a top department official indicated that, in spite of the downturn, the guidance was no longer active. The official described the unemployment challenges many students now face as 'temporary,' unlike the Great Recession, and disagreed with the previous policy of allowing schools to fast-track help for students receiving unemployment benefits.

... On Thursday, the Department of Education clarified its position, saying it 'understands that high unemployment nationwide resulting from the COVID-19 pandemic will increase the number of professional judgment decisions performed' and that it 'will not negatively view increased use of professional judgment or use it as a selection criterion for a program compliance review.'

In short: Colleges will not be punished for reconsidering many students' aid packages.

'We're pleased to see the department taking steps ... to provide schools reassurance that they can help students in need without later being unduly penalized,' Draeger said.

The news comes as many schools said they're already seeing spikes in requests to revisit students' aid packages. According to Draeger, when his organization surveyed its member institutions in June, 90% of financial aid offices at the nearly 300 schools that responded said they anticipate an increase in these professional judgment requests this year."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 7/10/2020

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