FAFSA Beta Testing, End of Grace Period for Borrowers No images? Click here October 2, 2024 Publisher's Note: With the October recess, ACCT's Latest Action in Washington will be published biweekly. At the conclusion of this recess, LAW Alerts will resume publishing on a weekly basis. Leading the news this week: Members of Congress have left DC for the October recess to hit the campaign trail. Several states in the south continue assessing the catastrophic impact of Hurricane Helene, while many institutions of higher education remain closed in parts of states like North Carolina. Meanwhile, the start of the new fiscal year (still operating at FY 24 levels) marks the end of programs that supported student loan borrowers return to repayment after the pandemic. Now let's dive into the latest news in higher education! FAFSA Form Beta TestingThe new FAFSA roll out for the 2024-2025 academic year has been filled with errors and associated with a decrease in FAFSA applicants, a reality that has heavily impacted low-income college students. Starting on October 1st, the Department of Education initiated its first Beta testing of the 2025-2026 FAFSA form. This first phase of testing consists of 6 community based organizations who selected a small pool of students to fill out and submit the forms. After the conclusion of Beta 1, Betas 2 through 4 each will consist of 10 high school and 48 postsecondary participants. Those participating in these tests are involved in the college access and financial aid community while also representing 2 and 4-year institutions, HBCUs, MSIs, low-income, and first generation college students. As a reminder, the FAFSA form is scheduled to go officially live for all applicants on December 1, 2024, and ACCT continues monitoring the rollout and working with our partners at FSA to address ongoing challenges for community college students. The goal is to complete testing prior to the December 1st deadline. End of Grace Period for Federal Student Loan BorrowersThe COVID-19 pandemic brought a three-year student loan repayment moratorium. In 2023, the Biden Administration implemented both the Fresh Start and On-Ramp programs designed to provide student loan borrowers at risk of default with support as they transition to once again making payments towards their loans. These supports included: the removal of defaulted student loans from borrowers' credit history; if in default, the borrower becoming again eligible for federal financial aid; and 270 missed payments not resulting in default or a lowering of borrowers' credit scores. However, the interest on the loan did accrue for non-paying borrowers under these programs. The federal government resumed collecting payments after conducting a final extension of the Fresh Start and On-Ramp programs from September 30th to October 2nd. The Fiscal Responsibility Act prevents the federal government from further extending the grace period for borrowers. This means that any borrowers who fail to maintain their repayment status will now run the risk of going into default, with all the negative implications associated with that. The Biden Administration urged many borrowers to enroll in their income driven repayment plan, known as the SAVE plan, to remain in good standing; however, with the SAVE plan being currently litigated in Court, FSA is not processing new applications for the plan. Approaching Anniversary of October 7thIn the wake of the October 07, 2023 attacks in Israel, the Department of Education has published a series of resources and guides with the purpose of fostering safe and inclusive campuses in primary, secondary, and postsecondary intuitions. Among these resources is "Free to Learn: Leading Inclusive Environments in Higher Education," a guide intended to assist leaders of institutions of higher education with "building learning communities that celebrate diversity, encourage curious and thoughtful debate, and build engaged citizens." In the meantime, the Department of Education’s office of civil rights continues processing complaints of antisemitism and islamophobia stemming from the October 7 attacks. Outreach EffortsIs your institution meeting or hosting an event with federal elected officials? We created a Congressional Contact Form that will help us track outreach efforts of community college leaders across our membership. By filling out the form, you are better informing ACCT's advocacy efforts and our advocacy team is able to continue those conversations with congressional staff in DC. ACCT NOW is the go-to resource for issues affecting community colleges. Our new website features original reporting and research, as well as of-the-moment legislative updates. ACCT NOW also includes articles, reports, and research from outside sources that benefit the ACCT community. Read the Latest Articles on ACCT NOW: Have a Question?Contact us with any questions or concerns about public policy and ACCT's advocacy on behalf of two-year colleges and two-year college trustees. ACCT's Latest Action in Washington alerts are sent to interested ACCT members to keep you up to date on important legislative activities that impact community colleges. If you no longer wish to receive ACCT's Latest Action in Washington alerts, reply to this email with UNSUBSCRIBE in the subject line. For more information about ACCT's advocacy services, visit acct.org/advocacy Spread the Word.Please encourage your fellow trustees, presidents and colleagues to stay up to date about legislation that affects their community colleges by joining the Latest Action in Washington (LAW) Alert network. To join, simply register here. For more community college news from inside the beltway, follow us on Twitter and LinkedIn, or like us Facebook. |