Higher Ed Policy Roundup: Vol. 5 - Issue 50

The Senate passed its short-term Fiscal Year 2022 funding bill last night, avoiding a government shutdown. This temporary measure, which funds the government through March 11, heads to President Biden’s desk today for his signature. Congress will continue to work on passing spending bills for FY 2022 which began on October 1.

On Tuesday, the Education Department (ED) announced that it would extend the suspension of the collection of Treasury offsets like tax refunds and Social Security for defaulted student loans. The Treasury offsets will now be reinstated 6 months after the pause on federal student loan payments ends. Recall that, in December, President Joe Biden announced that his administration would be extending the pause on federal student loan payments, interest accumulation, and collection activities that was set to expire on January 31, 2022 to May 1, 2022. 

ED said it would reevaluate how it responds to student loan bankruptcy cases, but it is continuing to appeal successful discharge cases.

Why the $1.7 billion Navient student loan settlement might be too good to be true for some borrowers.

Student loan lawsuit claims government and collectors unfairly cost borrowers tax refunds and Social Security checks.

The following bills have been recently introduced for consideration by the 117th Congress (2021-2022):

H.R. 6749 – Clean Slate through Repayment Act [Rep. Deborah Ross (D-NC-6)] would eliminate records of default from the credit history of a student loan borrower once they complete the full repayment of their education debt.

S. 3658 – Resident Education Deferred Interest (REDI) Act [Sen. Jacky Rosen (D-NV)] would allow borrowers serving in medical or dental internships and residencies to suspend their student loan payments interest-free for the duration of the placement.