"Despite widespread concern about college students’ debt burden, a growing number of experts are calling on policymakers to increase the amount of federal loans students may borrow. Current regulations prohibit undergraduate students from borrowing more than $7,500 per year and no more than $31,000 total—a cap that has held steady for more than a decade, even though college costs have increased significantly. For students who are no longer dependent on their parents, the cap is higher at $12,500 per year and $57,500 total," Georgetown University writes.

... Experts say that avoiding loans entirely—for instance, by increasing grant aid—would be optimal but acknowledge that lawmakers are unlikely to sufficiently increase the maximum Pell Grant.

Without such changes on the horizon, organizations such as the National Association of Student Financial Aid Administrators (NASFAA) are urging Congress to raise the federal student loan cap as part of the Higher Education Act reauthorization. Karen McCarthy, NASFAA’s director of policy analysis, told The Hechinger Report that lifting the cap would especially help middle-class students, who may struggle to cover the cost of college but likely do not qualify for grant assistance. However, NASFAA cautioned that colleges would need to play a role in preventing students from overborrowing. 'The details would need to be worked out on what has to happen here,' McCarthy said."

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: 4/22/2019