Financial Aid

What Will Sequestration Mean for Higher Ed?

Bracing for cuts, advocating for opposition

Higher ed organizations are bracing for potential cuts in student loan funding and the trickle down of major cuts to agencies that support the bulk of institutional research and development.

Key elements of ExCEL

  • Loan limits would mirror those in the Direct Loan Program. New borrowers could borrow IDEA loans up to the combined amount they could have borrowed from the subsidized and unsubsidized Stafford programs for their academic level (except that total would all be unsubsidized.) Graduate and professional students who could have borrowed an additional amount above their unsubsidized Stafford eligibility under the Grad PLUS program would be able to borrow that same amount in additional IDEA funds.

Loan Repayment Relief

Support for proposed legislation from financial aid administrators

A House bill, the Earnings Contingent Education Loans (ExCEL) Act of 2012, attempts to reduce complexity, improve default rates, and increase the effectiveness of federal student loan subsidies—and would dramatically alter the way federal student loans are paid back. On Dec. 17, Rep. Tom Petri (R-Wis.) introduced the bill, which would provide unsubsidized loans and require income-contingent repayment for all borrowers through a payroll withholdings system.

Lynn Russo Whylly's picture

Director of Financial Aid

Grand Rapids Community College

Grand Rapids, Mich.

Lynn Russo Whylly's picture

Reimagining Financial Aid to Improve Student Access and Outcomes

As the student aid programs rapidly approach reauthorization in 2014, they continue to face severe funding and efficiency problems. This report puts forward broad policy considerations to generate discussion and debate with the goal of advancing key policy issues facing student aid.

Lynn Russo Whylly's picture

Communicating about Financial Aid

With families’ growing concerns about financing higher education, and the federal government’s increasing involvement in recommending and/or requiring certain communications regarding institutional costs, every institution should be taking a step back to review all of the tools currently being used to present affordability, explain the aid application process, and communicate the awards themselves.

Lynn Russo Whylly's picture

NASFAA Reimagines the Design and Delivery of Student Financial Aid

As the student aid programs rapidly approach reauthorization in 2014, they continue to face severe funding and efficiency problems. With grant assistance from the Bill & Melinda Gates Foundation through their “Reimagining Aid Design and Delivery” (RADD) project, NASFAA today released a policy brief examining the current systems of student aid with an eye towards reimagining how they could be improved in the future.

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Ann McClure's picture

New Report Calls for More Grants to Low-Income Students, End to Federal Parent Loan Program

The federal government must double down on grants to low-income students and dramatically simplify the system of student loans, says a new report by the non-partisan New America Foundation.

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Ann McClure's picture

Fairness For Struggling Students Act Would Reform Private Student Loan Bankruptcy Rules

Three U.S. Senators unveiled legislation Wednesday to reverse a 2005 change in bankruptcy laws that makes it nearly impossible to have private student loan debt discharged.

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Communicating about Financial Aid

Seven steps to a better process and output

With families’ growing concerns about financing higher education, and the federal government’s increasing involvement in recommending and/or requiring certain communications regarding institutional costs, every institution should be taking a step back to review all of the tools currently being used to present affordability, explain the aid application process, and communicate the awards themselves.

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