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A lot is needed to fix and reimagine the complex and inefficient federal student loan program. From mounting student loan debt to confusing and inefficient repayment options available to borrowers, there is no shortage of issues for lawmakers and Department of Education (ED) officials to address. Seeking to provide a roadmap to a better student loan system, public policy-focused think tank Third Way recently published a memo offering several recommendations for creating a “stronger, fairer, more generous repayment process for both current and future borrowers.”
No, not yet. While the FAFSA Simplification Act (Title VII of the Consolidated Appropriations Act of 2021, CAA) does repeal the disclosure requirement for the Notice of Federal Student Financial Aid Penalties for Drug Law Violations in 20 USC 1092(k), effective July 1, 2023 with the 2023-24 award year, the U.S. Department of Education (ED) has not yet authorized that repeal for early implementation. View the full answer to this question to learn more.
This edition of the Capitol Recap includes 12 bills, with more than half of them having to do with student loan borrowing and repayment reform. In July, we saw seven bills aimed at alleviating student loan burden for borrowers with all loan types, including a bill calling for up to $50,000 in student loan forgiveness, a bill seeking to eliminate interest on student loans, and two bills that would alter the Public Service Loan Forgiveness (PSLF) program. We also saw a bill aimed at graduate students, that would allow students pursuing postgraduate education to once again receive Federal Direct Subsidized Loans. NASFAA’s Capitol Recap provides summaries of each bill introduced in January, while the NASFAA Legislative Tracker provides a comprehensive list of all student aid-related bills introduced so far this session.