The Washington Update for February 2020 is a potpourri of various items. On February 10, President Trump released his fiscal year 2021 budget proposal. The administration proposed capping annual Grad PLUS limits at $50,000 and aggregate limits at $100,000, eliminating the Public Service Loan Forgiveness program, and increasing the amount paid under Income-Driven Repayment (IDR) plans from 10 percent to 12.5 percent and extending repayment forgiveness from 25 to 30 years. Also in February, the U.S. Department of Education (ED) and the Consumer Financial Protection Bureau (CFPB) announced that the two agencies had signed a new Memorandum of Understanding (MOU) regarding student loan complaints. Under the agreement, the CFPB will direct complaints about federal student loans to ED, and ED will direct complaints about private loans to the CFPB. Senators Warren and Brown wrote to the five largest Online Program Management (OPM) companies raising concerns about the business practices of the companies that "appear to undermine the best interests of students."
Learn more about the latest financial aid updates in the February Washington insights, and have a happy, healthy LEAP YEAR day – February 29, 2020!
Read the February 2020 Washington Insights.
Washington Insights provides the latest news, guidance, and inside-the-beltway advice on the complex subject of financial aid in higher education. Washington Insights is prepared by Dr. Sharon Bob, Ph.D., the Distance Education Accrediting Commission's Special Consultant on Student Aid.