"Higher education is biting its nails watching the debt ceiling timer tick down in Washington," The Hill reports.
... "'Unfortunately, in the last several years, colleges and universities and financial aid offices have gotten used to a political game of chicken in Washington, D.C., and the potential for federal shutdowns, but this one is just a little bit different,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators."
"'We use the word unprecedented a lot in Washington, D.C., but this truly is one of those unprecedented times, and we would expect major disruptions to federal student aid if we hit the debt ceiling,' he added."
"However, there are still some students who receive aid in the summer or use it for other expenses — a spigot that would be cut off. 'For individual students who don’t receive their student aid disbursements, the difference between a couple of days and a couple of weeks can be huge because federal student aid just doesn’t cover tuition fees at an institution. It also covers things like rent and other costs of living, like insurance or transportation and food,' Draeger said."
"Draeger said his organization would push schools to put a pause on tuition payments to assist students. 'Given that the ramifications of a United States default are just so large, I think they find themselves in the same boat as everyone else, which is what do you do if the United States can’t pay its bills? The level of contingency plans that you can make around that just becomes very narrow,' Draeger said."
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: 5/23/2023