June 11, 2021

Higher Ed Policy Roundup: Vol. 5 - Issue 20

Policy and Advocacy


This Week in Washington

In the recently released Fiscal Year 2022 budget proposal, the Biden-Harris Administration estimates that the federal government will see a loss of $53 billion from the student loan portfolio. The estimate is an increase from the projected $15 billion loss contained in last year's proposal, bringing the total loss from the government's student loan portfolio to $68 billion. This loss is said to be due to rising tuition, income growth, lower repayment rates, and pandemic-relief efforts such as the student loan payment pause that is set to expire at the end of September.

News You Can Use

The National Association of Student Financial Aid Administrators highlights how recovery from the pandemic could complicate student loan repayment.

The Brookings Institution published an analysis of the Free Application for Federal Student Aid (FAFSA) verification process and its burden on students and public colleges.

Recent Legislation

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

H.R. 3785Fair-Value Accounting and Budget Act [Rep. Ralph Norman (R-SC-5)] would allow the government to utilize a supplemental financial assessment method – known as fair-value accounting – for budget forecasts on legislation related to loan or loan guarantee programs, among other requirements.