House Republicans are planning to propose a Bill this week that would bring about Drastic changes to Federal Loans Servicing and Higher Education Policy.
The Bill is part of a push to provide Students with more Skills in a modern Labor Market, but would also do away with Programs meant to ease Students' Borrowing Burdens.
Under the Promoting Real Opportunity, Success and Prosperity Through Education Reform (PROSPER) Act, Student Loan Debt would no longer be Forgiven for Workers after they spend 10 years in the Public Sector, while the Cost of Monthly Loan Payments for Private Sector Workers would no longer be Tied to their Income Levels.
The Bill would "grandfather in" People who Signed their Loans before the Bill's Implementation.
The Bill would also Cap the Amount of Money Students or their Parents could Borrow to Pay for Tuition.
For-Profit Colleges are expected to Reap many of the Benefits of this Proposal. The Education Department would No Longer be able to Enforce the "gainful employment regulation," which looks at the Debt-to-Income Ratio of Students Post-Graduation when considering how much Federal Student Aid For-Profit Education Institutions should Receive.
Earlier this year, Sen. Sherrod Brown (D-Ohio) said this Rule was "critical in holding for-profit schools accountable and we must continue fighting to make sure students come before profits."
Steve Gunderson, CEO and President of Career Education Colleges and Universities, a Trade Organization representing For-Profit Colleges said, "If we can replace [the gainful employment regulation] with a common set of outcomes for everybody, I think we're all better off."
The Plan includes a Radical Revamp of the $1.34 Trillion Federal Student Loan Program. The Rising Expense of Higher Education is deeply troubling to many Americans and many increasingly Question its Value. Despite a steady rise in the share of High-School Graduates heading to College, a Skills Gap has left more than 6 Million Jobs unfilled, a significant drag on the Economy.
The Opening House GOP gambit will likely take more than a year to wind through Congress and could undergo Substantial Revisions before Passing into Law. And although elements of the Bill could gain Bipartisan Support, many Universities are likely to Oppose the Limits on Federal Student Loans and greater Competition as the Bill proposes New Paths to the Workforce that could Exclude them.
NYC Wins When Everyone Can Vote! Michael H. Drucker
No comments:
Post a Comment