Proposed plans to reauthorize the Higher Education Act—created in 1965 as a way to support students attending colleges and universities, as well as the institutions themselves—include reducing options for securing and repaying student loans.
According to an article in U.S. News and World Report, “Republicans on the House Committee on Education and the Workforce…unveiled the 500-plus-page PROSPER Act, which stands for Promoting Real Opportunity, Success and Prosperity through Education Reform.”
If Congress passes the PROSPER Act in its current form, beginning July 1, 2019, students could only borrow through the proposed Federal ONE Loan program. In addition, Pell Grants would become the sole federal grant option. Borrowing limits in the bill would cap loan amounts for both students and their parents. Also, subsidized loans, which don’t accrue interest until after the deferment period, would no longer exist.
The article goes on to list how the proposed streamlining will also change repayment options. Currently, recent graduates can choose from among nine plans—or at least from those they qualify to use—for repaying their federal loans. In the PROSPER Act, only two are offered and neither of those two include forgiveness options.
The bill still has a long way to go, with much input to come from legislators and lobbyists, before becoming law.
More on student loans…
Shelley D. Hutchins is content editor/producer for the ASHA Leader. firstname.lastname@example.org.