Higher Ed Policy Roundup: Vol. 7 - Issue 18

Over the weekend, President Biden and House Speaker Kevin McCarthy reached a deal to raise the debt limit. As part of the deal, President Biden agreed to end the pause on student loan payments and interest by August 30, 2023. Recall that the Biden-Harris Administration planned to end the pause 60 days after the U.S. Supreme Court ruled on the Administration’s student debt cancellation plan or 60 days after June 30, 2023. The deal does not specify how or when the Education Department (ED) must resume collecting payments, which would allow ED to continue planning for possible flexibilities such as grace periods. The Congressional Budget Office (CBO) released its estimates of the financial impact of the deal and noted that the provision eliminating the pause would not impact federal spending.

On Thursday, the Senate voted 52-46 to stop the Biden-Harris Administration's debt relief plan and void the pause on student loan payments and interest. Recall that the House passed the measure, H.R. Res 45, last week. The White House has said that it would veto the measure if it made it to President Biden’s desk, which would require a two-thirds vote in each chamber to overturn.

A working paper from the National Bureau of Economic Research found that colleges and universities in Texas increased their cost of attendance after the creation of Grad PLUS loans.

Governor Gretchen Whitmer (D-MI) signed an executive directive requesting the Michigan state government explore how it can help reduce student loan costs.

There were no relevant student-aid related bills recently introduced for consideration by the 118th Congress (2023-2024).