The Governors are holding their conferences on postsecondary policy in order to come up with a plan to improve the system.
Key Highlights :
The U.S. Department of Education has two main avenues for affecting higher education policy – through administering financial aid programs and through applying accountability pressure and regulating institutions’ financial aid eligibility. The Biden administration has proposed efforts on both fronts – including the proposed student loan forgiveness program, a new income-driven repayment program, forthcoming gainful employment rules, and a new rule that would require colleges to use a common metric to measure student success.
The student loan forgiveness program is a proposed effort to provide relief to borrowers who are struggling to repay their loans. The program would provide forgiveness of up to $45,000 of outstanding student loans for borrowers who are employed in a high-demand field or who are enrolled in an eligible graduate or professional program. The program is estimated to cost $12 billion over 10 years, and the Obama administration has proposed to fund it through a combination of increased revenue and cuts to other federal programs.
The new income-driven repayment program would provide relief to borrowers who are struggling to repay their loans by reducing their monthly payments. Under the program, borrowers would be able to reduce their payments by as much as 20 percent if they earn less than 150 percent of the poverty line. The program is estimated to cost $30 billion over 10 years, and the Obama administration has proposed to fund it through a combination of increased revenue and cuts to other federal programs.
The forthcoming gainful employment rules would require colleges to use a common metric to measure student success. Under the rules, colleges would be required to calculate a student’s debt-to-income ratio and compare it to a threshold level. If a student’s debt-to-income ratio is above the threshold level, the student would be required to take steps to reduce their debt burden, such as enrolling in a lower-cost loan program or working in a high-demand field. The rules are estimated to cost $10 billion over 10 years, and the Obama administration has proposed to fund them through a combination of increased revenue and cuts to other federal programs.
The Obama administration’s proposed rule that would require colleges to use a common metric to measure student success is estimated to cost $10 billion over 10 years.
