Higher Ed Leaders Praised the White House’s Debt Forgiveness Plan — As a Good Start

"Higher education leaders largely supported the Biden administration’s Wednesday announcement that it would cancel $10,000 in student loan debt for individuals making less than $125,000 annually or couples filing taxes jointly making under $250,000," Higher Ed Dive reports.

... "In a statement, Justin Draeger, president of the National Association of Student Financial Aid Administrators, said the plan prioritizes borrowers who struggled to afford higher education the most."

"However, Draeger cautioned that the plan must be rolled out judiciously to actually target relief to low- and middle-income borrowers. 'We urge the Department to carefully consider how this relief can be implemented as easily as possible, while still ensuring commonsense safeguards to ensure the right people get the right benefits,' he said."

"Draeger also criticized how long the Biden administration waited to extend the federal student loan moratorium, which had been set to expire on Aug 31. He called on the Education Department to develop an 'on-ramp to repayment.'"

"'The timing of this announcement creates counseling challenges for financial aid offices, who do not have the information they need to adequately advise students in a timely way,' Draeger said. 'After more than two years without student loan payments, transitioning millions of borrowers back into repayment cannot happen at the drop of a hat.'"

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Publication Date: 8/24/2022

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