NASFAA Mention: Excusing Loan Payments vs. Paying Them

"Senate Republicans and Democrats on Thursday unveiled plans to help students saddled by debt during the economic fallout of the coronavirus crisis, but a rift quickly developed over how," Inside Higher Ed reports.

"Meanwhile, the Republican proposal, released late Thursday afternoon, also left Terry Hartle, senior vice president for government and public affairs for the American Council on Education, "deeply disappointed." At first glance, the plan does not include enough aid to help colleges and universities ​survive the economic effects of the crisis, he said. Some public and private university presidents are worried their institutions might close, he said.


Policy groups also reflected the philosophical division over how to help those with student loans.

Neal McCluskey, director of the libertarian Cato Institute’s Center for Educational Freedom, said right-leaning policy experts would have a problem with canceling debt, noting that some who would have their loans paid by the government continue to be well-off during the crisis and able to pay back their student loans.

But advocates pushing to give borrowers more relief than suspending loan payments were disappointed the Republican proposal didn’t go further.

'It’s a great start, but it doesn’t go far enough,' Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, said of the Republican proposal. Draeger and other groups had wanted additional measures like keeping unpaid loans from going into default, or halting the use of wage and tax-refund garnishments to collect overdue payments during the crisis."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 3/23/2020

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