The federal government now offers a multitude of complicated income-driven repayment (IDR) plans that are difficult to understand, enroll in, and stay in. Many students who would benefit from IDR do not enroll, and others will have large amounts of debt forgiven despite earning high wages. The current problems with IDR are not an indictment of the…

The first two years of the Obama administration brought nothing but good news for student financial aid programs. These included increases to grants, tax benefits, and funding for community colleges and minority-serving schools. But in early 2011, President Obama and Congress released the new budget with a request that would achieve large savings…

The federal financial aid system is no longer up to today's demands. Built in a different era, its haphazard evolution over the decades has made it inefficient, poorly targeted, and overly complicated. With the need for higher education never greater and college growing increasingly unaffordable, students deserve a streamlined aid system that is…

Congress completed the fiscal year 2011 appropriations process on April 14th, 2011, finalizing annual funding for nearly all federal education programs through September 30, 2011 at $68.3 billion, up $4.2 billion from the prior year. Making sense of the federal education budget and the appropriations process can be a frustrating task for education…

The 2011 Occupy Wall Street protests brought countless media reports about unemployed college graduates struggling to repay their student loans and headlines sounding alarms that outstanding student loan debt will soon reach $1 trillion. Even though evidence is mixed on whether today's college graduates leave school with significantly more debt…

The fiscal year 2012 budget process has been anything but typical or predictable. While fiscal year 2012 starts in just a few weeks on October 1, 2011, the annual appropriations process is far from complete, and funding for federal education programs has not yet been finalized. Nevertheless, congressional action in the months that have led up to…

The budget resolution put forward by Congress each year--which sets out the congressional budget plan for the next five years--and the ensuing budget process itself are enormously significant for education funding. However, the arcane procedures under which Congress produces and acts upon the budget resolution are often confusing to the media and…

In an ongoing debate about the relative costs of the federal government's direct and guaranteed student loan programs, some budget experts and private lenders have argued for the use of "market cost" estimates. They assert that official government cost estimates for federal student loans differ from what private entities would likely charge…