The Administration Issues Press Release Highlighting Details On How The July 1 Implementation Of Student Loan Revisions Included In OBBB Will Make Higher Education More Affordable
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Overview
Yesterday the U.S. Department of Education (Department) issued a press release entitled “Fact Sheet: The Trump Administration is Making College More Affordable.” (centralstatesedu.us11.list-manage.com/track/click?u=75e01bde202d593ed21c1c91c&id=404a1d85e7&e=05bce952ad)
The announcement summarizes the Administration’s perspective on the current state of higher education, stating that higher education has been one of the fastest-growing expenses for American families over the past four decades.
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** It asserts that—
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* Uncapped access to federal student loans, combined with few constraints on both institutions ability to raise tuition and fees and students ability to borrow have resulted in a tripling of the student loan portfolio and escalating defaults the summary states; and
* The academic offerings of too many programs provided by institutions of higher education leave students and taxpayers with little to no return on their investment even as the endowments of institutions of higher education approach $1 trillion in assets.
Forutnately, the press release goes on to say,
** “Thanks to President Trump’s Working Families Tax Cuts Act (the Act), new loan limits taking effect this summer will curb excessive borrowing and force institutions to evaluate their costs. These reasonable caps will help prevent borrowers from taking on debt they may struggle to repay while putting downward pressure on institutions to lower costs, making higher education more affordable for America’s students.”
The press release then goes on to pose and answer a series of seven questions. This afternoon, CSPEN will review the seven specific FAQs detailed provided in the press release on our weekly CSPEN Federal Legislative & Regulatory Update webinar.
