"Education Secretary Betsy DeVos on Tuesday warned that the federal student aid program is a 'looming crisis in higher education,' in a speech that some education experts say lacked an understanding of the problem or solutions," The Washington Post reports.

"'Our higher ed system is the envy of the world, but if we, as a country, do not make important policy changes in the way we distribute, administer and manage federal student loans, the program on which so many students rely will be in serious jeopardy,' DeVos said at the Education Department’s annual Federal Student Aid training conference in Atlanta.

Higher-education experts have long criticized the Education Department’s lending program as unwieldy because of varying loan limits and repayment plans that have mushroomed over the past few administrations.

The federal student loan portfolio has surpassed the trillion-dollar mark in the face of rising college costs, stagnant wages and paltry state investment in higher education. Many Americans saddled with even small amounts of education debt are struggling or taking longer to repay the debt, raising questions about the sustainability of the program.

... The National Association of Student Financial Aid Administrators issued proposals, including the elimination of origination fees and annual loan limits, that policymakers could implement to help curb over-borrowing. The trade group’s president, Justin Draeger, said he agrees with DeVos’s assessment that it will take a joint effort among stakeholders to turn the student aid program around.

'The financial aid community stands ready to work with policymakers to find and implement solutions that will help keep college affordable without burying families in levels of debt that cannot be repaid,' he said, in a statement."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 11/29/2018