Contact: Allie Arcese
Director of Communications
WASHINGTON, D.C., SEPTEMBER 15, 2022 — On Thursday, Democratic members of the House Committee on Education and Labor released the Lowering Obstacles to Achievement Now (LOAN) Act, which seeks to lower the cost of college for current and future student loan borrowers by doubling the maximum Pell Grant award, shortening the time to forgiveness under the Public Service Loan Forgiveness program, eliminating the capitalization of interest on student loans, and more.
“As NASFAA has said time and again, widespread loan forgiveness of any kind should also come with comprehensive reforms to the student loan system to prevent borrowers and taxpayers from ending up in the same position in the future.
One of the most effective ways to do that is to provide substantial, upfront investments for need-based student aid programs, such as the federal Pell Grant program. Doubling the maximum award would make up for necessary investments that have been pushed off for far too long, restore purchasing power for low-income students, and provide a long-term option to address college access and affordability issues.
We’re also pleased to see the preservation of the Public Service Loan Forgiveness program and the codification of the limited waiver that will remedy some of the logistical hurdles that have plagued the program.
We look forward to working with members of Congress on both sides of the aisle to craft a comprehensive student loan reform proposal that will benefit students and taxpayers alike.”
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: 9/15/2022