Higher Ed Policy Roundup: Vol. 8 - Issue 26

On Wednesday, the Government Accountability Office (GAO) released a report regarding repayment practices of federal student loan borrowers after the federal student loan payment pause. Recall that in March 2020, federal student loan payments and interest accrual were paused due to the COVID-19 pandemic. Payments ultimately resumed in October 2023, and borrowers were subsequently provided with a 12-month “on-ramp” period so missed payments would not be reported as delinquent. The GAO report, which was requested by Rep. Virginia Foxx (R-NC-5) and Sen. Bill Cassidy (R-LA), found that 53% of borrowers were current on their payments, 29% were past due, and 17% were in forbearance or deferment. GAO did not make any recommendations in its report.

Also on Wednesday, the Education Department (ED) published a notice in the Federal Register asking the public for feedback on ways to improve the 2025-26 Free Application for Federal Student Aid (FAFSA). Recall that the FAFSA has been plagued with issues stemming from delays due to the implementation of the FAFSA Simplification Act resulting in ED announcing that it would be delaying the release of the 2025-26 FAFSA. The deadline for public comments is September 13, 2024.

In a recent report, the Brookings Institution studied tuition growth and student loan borrowing over the last 30 years, indicating that at the graduate and professional levels, the composition of enrollment and net prices paid by students contribute to higher borrowing.

The Consumer Financial Protection Bureau (CFPB) recently released its Financial Literacy Annual Report, detailing the five principles the CFPB follows to improve consumers’ financial literacy.

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