"As President Biden moves closer to canceling at least some student debt in the near future, many higher education advocates and members of Congress are concerned that cancellation without broader reforms to the federal loan system at large will merely provide a temporary solution to a much larger issue." Inside Higher Ed reports.

..."'If we’re going to move forward with widespread debt forgiveness, what are the policy solutions that we’re focused on to ensure we’re not in the same position in one year, five years or 10 years?' said Justin Draeger, president of the National Association of Student Financial Aid Administrators.

Relief With Reform

Thus far, the Biden administration has forgiven $25 billion in student debt through a range of targeted debt relief initiatives. These include simplification of the Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability (TPD) discharge programs to make them more accessible to borrowers and moves by the administration to discharge student debt for students who attended predatory for-profit colleges.

According to Draeger, 'with each of the targeted loan debt relief [efforts] offered so far by the department, the administration has made or recommended policy changes to address the underlying challenges that necessitated that forgiveness.'"

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: 6/7/2022