"Advocates who have been pushing for student loan debt to be canceled were disappointed that, even with a $2.2 trillion price tag, the stimulus package approved by the U.S. Senate late Wednesday night doesn’t do more," Inside Higher Ed reports.
"The president of the umbrella association representing colleges and universities also expressed disappointment, saying the amount of aid for higher education institutions in the bill is 'woefully inadequate.'
So even before the Senate sent the relief package to the House, lobbyists were looking ahead to the next stimulus package, which Congress has already begun discussing.
'This isn’t the last bus,' said Terry Hartle, the American Council on Education's senior vice president for government and public affairs, after his group calculated that the bill contains about $14 billion for higher education institutions, far less than the $50 billion they requested in emergency aid.
Throughout the debate over the bill, advocates for student loan borrowers, such as the Young Invincibles, were pushing Democratic proposals in the House and Senate under which the federal government would have made payments on behalf of borrowers and reduced their balances by at least $10,000.
Under the measure, borrowers with federally held loans will be excused from making their monthly payments, without interest on their balances accruing, for six months, through Sept. 30.
'This bill will keep payroll checks coming to workers during the crisis, relieve financial burdens on Americans during the crisis,' Senator Lamar Alexander, the Tennessee Republican and education committee chairman, said in a statement.
The moratorium on making payments would extend the 60-day break, Betsy DeVos, the U.S. education secretary, announced last week. Some financial aid experts had worried that the temporary waiver on interest President Trump also announced could lead to problems because it required borrowers to contact loan servicers.
But Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, said that based on what he’s been able to learn about the Senate bill, it appeared to make the moratorium on payments and interest automatic."
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: 3/26/2020