Contact: Erin Powers
Director of Marketing & Communications
WASHINGTON, D.C., JULY 6, 2022 — On Wednesday, the Department of Education announced it would be publishing a highly anticipated Notice of Proposed Rulemaking on a number of regulations, including borrower defense, the Public Service Loan Forgiveness (PSLF) program, interest capitalization, total permanent disability discharges, closed school discharges, and false certification.
"These proposed rules all seek to do the same thing: ensure that student loan processes — both in terms of timeliness and fairness — can match our ideals when it comes to borrower protections.
We're thrilled to see proposed regulations that will make it easier for borrowers with disabilities to receive debt relief. Additionally, reducing the overall cost of federal student loans by eliminating interest capitalization wherever possible will also be welcome news for borrowers.
We're also hopeful that the Department has proposed rules that balance the need for timely adjudication of borrower defense claims against institutions that willfully mislead students, while providing fairness in ensuring schools have an opportunity to respond to those claims.
Some of the proposed rules need closer scrutiny though, and as we dig in, we're hoping to see proposals from the Department that will make permanent changes to the Public Service Loan Forgiveness program that will ultimately make it easier for borrowers to receive their promised benefits."
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 32,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 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.
Publication Date: 7/6/2022