Earlier this year, Representative Virginia Foxx (R-NC) introduced the College Cost Reduction Act (CCRA), a bill to reform higher education grant and loan programs and to establish new accountability rules for colleges. A key part of the bill would replace the myriad income-driven repayment (IDR) plans for federal student loans, including the Biden…

The administration of college financial aid is a key venue through which colleges can affect the likelihood that students will make it to graduation. We investigate the effects of an understudied yet consequential federal student aid policy: Return of Title IV Funds (R2T4). Under R2T4, students "earn" Federal Student Aid over a term or…

This document records testimony from a hearing before the Committee on Education and Labor that was held to examine the Department of Education's implementation of Borrower Defense. Member statements were provided by: (1) Honorable Robert Scott, Chairman, Committee on Education and Labor; and (2) Honorable Virginia Foxx, Ranking Member, Committee…

In August, the Biden administration announced a plan to forgive up to $10,000 in federal student loans for almost all borrowers, with up to an extra $10,000 for borrowers who had received Pell grants. The additional forgiveness for Pell borrowers intends to address the racial wealth gap, as Black and Hispanic students are more likely to receive…

Given the skyrocketing costs of higher education, some borrowers -- particularly those with low incomes and those who were scammed by for-profit colleges -- genuinely need assistance. But portraying student loan forgiveness as a working-class issue is highly misleading. In fact, data on student borrowing shows that debt relief benefits few…

The College Cost Reduction Act would overhaul the Higher Education Act, making changes to student borrowing and repayment, borrower protections, college oversight, postsecondary data, and more. The bill includes a new proposed risk-sharing model that would require colleges to repay the federal government for a calculated proportion of their…

Background: Nearly two decades have passed since the last successful reauthorization of the Higher Education Act. Since then, student loan debt and the accumulation patterns based on race have become a pressing issue to address in U.S. society. Purpose: Student debt is one of the key issues on the federal higher education policy agenda. The…

The student debt crisis is particularly dire for Black borrowers. Black degree-seekers are more likely to take out student loans to pay for higher education than white students, and they carry the largest average student loan debt of all racial demographics in the nation. The COVID-19 pandemic has created even more barriers to both postsecondary…

The volume and number of federal student loans, which provide financing to make higher education more accessible, have grown over the past few decades. In 2017, the most recent year for which detailed information was available, $96 billion in new federal student loans was disbursed to 8.6 million students, compared with $36 billion (in 2017…

There is a lot to consider when thinking about college or career school. One of those considerations should be how to plan to fund the education. Chances are that students will need to rely on student loans (money that is borrowed and payed back with interest) to help pay for at least part of the education. Direct Loans (loans made by the federal…

More than a million federal student loan borrowers default each year, and the U.S. Department of Education reports that as of June 2020, roughly 1 in 5 borrowers with federal student loans was in default. Since that time, the coronavirus pandemic and related economic downturn have continued to take a significant toll on households and businesses…

This guide is intended for college financial aid administrators and counselors who help students begin the aid process--filing the Free Application for Federal Student Aid (FAFSA®) form, verifying information, and making corrections and other changes to the information reported on the FAFSA. The Federal Student Aid Handbook consists of the…

In academic year (AY) 2018-2019, approximately 6,400 institutions of higher education (IHEs), enrolling about 26.5 million postsecondary education students, participated in the federal student aid programs authorized under Title IV of the Higher Education Act of 1965 (HEA; P.L. 89-329, as amended). These IHEs ranged in sector, size, and…

Black students are more likely to take on debt, borrow higher amounts, and struggle with repayment than their peers, because they generally have fewer resources to pay for college, thanks to the ongoing generational effects of systemic racism. This debt burden has far-reaching financial consequences, and many Black borrowers are unable to afford…

This hearing of the Committee on Health, Education, Labor, and Pensions focuses on reauthorizing the Higher Education Act through financial aid simplification and transparency. The following committee members presented opening statements: (1) Honorable Lamar Alexander, Chairman, Committee on Health, Education, Labor, and Pensions; and (2)…