WASHINGTON, D.C. March 20, 2014—Today, a consortium of higher education organizations called on Congress to reform the overly complex repayment process for federal student loans by automatically enrolling all new borrowers in a single repayment plan based on income. Defaults among federal student loan borrowers have nearly doubled over the last five years and federal student loan delinquencies are at an all-time high.
Consortium members HCM Strategists, Institute for Higher Education Policy, National Association of Student Financial Aid Administrators, New America, and Young Invincibles have studied federal student loan repayment challenges in depth over the past nine months. Their joint white paper Automatic for the Borrower: How Repayment Based on Income Can Reduce Loan Defaults and Manage Risk proposes a series of innovative fixes to streamline the repayment process, including:
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every ten undergraduates in the U.S. Based in Washington, DC, NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
About Young Invincibles
Young Invincibles is a national organization committed to amplifying the voices of young Americans, aged 18 to 34, and expanding economic opportunity for our generation. Young Invincibles ensures that young Americans are represented in today's most pressing societal debates through cutting-edge policy research and analysis and innovative campaigns designed to educate, inform and mobilize our generation to change the status quo.
The Institute for Higher Education Policy (IHEP) is a non-profit, non-partisan research organization based in Washington, DC, committed to promoting access to and success in higher education for all students, with a particular focus on populations that have been traditionally underserved by our postsecondary system. Celebrating its 20th year in 2013, IHEP develops innovative policy- and practice-oriented research to guide policymakers and education leaders, who develop high-impact policies that will address our nation's most pressing education challenges.
About HCM Strategists
HCM Strategists, founded in 2008, is a public policy and advocacy consulting firm that works with clients to align, advocate for, and advance public policies that improve our nation's education and health.
NCAN is an affiliation of hundreds of nonprofit organizations across the United States that help more low-income and underrepresented students enter and succeed in postsecondary education. We provide training, knowledge-sharing, benchmarking, and advocacy services so that nonprofits, K-12 schools, states, and colleges and universities can serve more students, more effectively and communities can enjoy the benefits of a better educated populace.
About The Committee for Economic Development (CED)
The Committee for Economic Development is a nonprofit, nonpartisan, business-led public policy organization that delivers well-researched analysis and reasoned solutions to our nation's most critical issues. CED's work centers on the pursuit of seven core principles: sustainable capitalism, long-term economic growth, efficient fiscal & regulatory policy, competitive & open markets, globally competitive workforce, equal economic opportunity, and non-partisanship in the nation's interest. CED's research falls under four issue areas: fiscal health, education, global competitiveness, and democratic institutions. Learn more about CED online at www.ced.org.
Publication Date: 3/20/2014