Simplifying Student Loans

"The Education Department released a series of proposed rules Wednesday that would simplify federal loans, to make it easier for students who attended fraudulent colleges or who are public service workers to get loan forgiveness," Inside Higher Ed reports.

"The proposed rules include changes to the borrower-defense program and the Public Service Loan Forgiveness program, both which have been criticized for being overcomplicated and having lengthy application and review processes."

..."But Justin Draeger, the president of the National Association of Student Financial Aid Administrators, said that it is important that there is a rule 'that balances the need for timely adjudication for borrower claims against schools that willfully misled students and then fairness in ensuring that schools have an opportunity to respond to those allegations.'

Under the proposed regulations, the Education Department would only engage in conversation with a college during a borrower-defense claim if they were trying to recoup money. The proposed regulations would also create a clear process through which the department can request that a college cover the costs of loan discharges for its former students."

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: 7/7/2022

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