Congress considers solution to address FAFSA challenges

There are currently two contrasting plans for the future of American higher education that are stalled in Congress.

One of these plans, initiated by Republicans at the beginning of the year, is a comprehensive overhaul of the federal student loan system. Democrats argue that it would significantly reduce the amount of money students can borrow and make cuts to programs that assist lower-income graduates with their loans.

Read more:Republicans propose fines for rich colleges that leave students with excessive debt.

Democrats have their own set of bills, known as the “Roadmap to College Student Success,” which aim to double federal grants for students from lower-income backgrounds, expand access to certain types of student loans, and lower interest rates.

However, given the current gridlock in Congress, it is highly unlikely that either plan will gain traction.

The Republican plan, a 224-page bill, has already passed the House’s education committee along party lines. However, its future is uncertain in the Senate, where Democrats hold a slim majority.

Although the bills themselves may not make it through, some ideas proposed within them have garnered bipartisan support. One such idea is the need to update the outdated law governing colleges and universities, which has not seen any revisions in over a decade.

As the Education Department faces delays in overhauling the Free Application for Federal Student Aid (FAFSA), there is a bipartisan push to standardize college financial aid offers in order to alleviate some of the stress for families.

Read more:Millions of students may only have weeks to compare college financial aid offers

A proposal to standardize financial aid offers has been sitting in Congress for almost a year, and there is now a renewed urgency to consider it.

Compared to last year, FAFSA applications have declined by 57%. Colleges are experiencing delays in receiving critical student data, which means that high school seniors and transfer students have less time to compare their financial aid offers.

In recent weeks, both Democrats and Republicans have voiced frustration over the FAFSA rollout. However, whether this frustration will translate into bipartisan cooperation and the passage of new laws remains uncertain.

“Our topics end up sitting on the shelf for quite some time,” said Karen McCarthy, Vice President of Public Policy and Federal Relations at the National Association of Student Financial Aid Administrators. “We pay attention to them when Congress does get some momentum around addressing our topics.”

One topic of agreement between Democrats and Republicans?

Despite their many disagreements, Miguel Cardona, Biden’s Education Secretary, and Rep. Virginia Foxx, the Republican Chair of the House education committee, both recognize the need for colleges to simplify their price tags. Both Cardona and Foxx support the College Transparency Initiative, which encourages colleges and universities to present financial aid offers in a more consistent manner.

Currently, financial aid offers can vary depending on the institution, making it difficult for students to compare offers from different universities. Lawmakers from across the political spectrum believe that standardizing terminology and formatting requirements for colleges would be beneficial.

The Republicans’ proposed College Cost Reduction Act includes a provision that would mandate the creation of a standardized financial aid offer form. This idea builds on a narrower bipartisan bill that has been sitting idle in the GOP-controlled House education committee for nearly a year.

Although colleges have had reservations about this idea in the past, the latest version of the proposal may have gained some support.

Emmanual Guillory, Senior Director of Government Relations at the American Council on Education, stated in a recent interview that while his organization has not taken an official stance on the GOP bill, he believes that using similar definitions and formatting would assist students in making more informed decisions.

While a standardized template would pose challenges for colleges, Guillory emphasized the importance of transparency around costs.


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