This Week In Washington
On Monday, the Office of Federal Student Aid (FSA) released its annual report outlining program performance results for fiscal year 2020. In it, the report highlights the looming burden that would be caused by the expiration of the pause on federally-held student loan payments. Recall that in August, the president signed an executive order directing the Department of Education to extend the pause on all federally-held student loan payments and accrual of interest until December 31, 2020. (The pause was initially provided by a previous executive order in March, with the Coronavirus Aid, Relief, and Economic Security (CARES) Act codifying that action into law and extending it to six months.) Chief among FSA’s concerns are fears of borrower delinquencies and heavy administrative workload associated with putting millions of borrowers in repayment status all at the same time. The president had indicated in the summer that he planned on extending the pause beyond December 31, 2020, however, the election results have made that move uncertain.
The following bill(s) have been recently introduced for consideration by the 116th Congress (2019-2020):
H.R. 8748 – Honor Our Nation’s Oath to Remember (HONOR) Our Veterans’ Sacrifice Act [Rep. Abigail Spanberger (D-VA-7)] would seek to improve veterans’ access to higher education by removing certain Free Application for Federal Student Aid (FAFSA) reporting requirements related to disability compensation.