This Week In Washington
Key Democratic Senators asked Education Secretary Betsy DeVos to swiftly implement the Public Service Loan Forgiveness (PSLF) sections of the recently passed omnibus spending bill. Recall that the omnibus established a new $350 billon fund to provide, on a first-come first-serve basis, PSLF forgiveness to borrowers who were enrolled in ineligible repayment plans. The Senators asked DeVos to explain how the Department of Education (ED) was going to inform borrowers about this fund and the process by which borrowers will apply for forgiveness. The Senators requested that DeVos provide them with an update on ED’s progress in 30 days.
Last week, the Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) about its own consumer financial education programs. On Monday, the CFPB officially began seeking public comments about its programs. The bureau wants help from interested parties to assess the “efficiency and effectiveness” of its education programs. According to the agency, this RFI is part of Director Mick Mulvaney’s quest to ensure the bureau is adhering to all of its stated purposes and functions. You can submit comments here until July 9.
News You Can Use
John R. Brooks, professor of law at Georgetown University, argues that the proposed changes to the federal student loan system in the PROSPER Act would make postsecondary education more expensive. Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce released a rebuttal stating that the column “missed many key facts” of the actual reforms mentioned in the PROSPER Act.
The “fix-it fund” for the Public Service Loan Forgiveness (PSLF) program included in the omnibus spending bill still leaves some public servants ineligible for PSLF benefits.
Susan Dynarski, professor at the University of Michigan, calls for major changes to income-driven repayment plans in order to simplify the system and keep borrowers out of default.
A recent class-action lawsuit could allow some struggling private student loan borrowers to have certain loans discharged in bankruptcy.
A recent study of undergraduate students finds that the way income-driven repayment programs are portrayed to students can significantly impact whether borrowers choose to enroll in the program.
No student aid-related bills were introduced this week for consideration by the 115th Congress.