Congress’ Down Payment on Higher Education’s 2021 Needs
December 23, 2020, 8:58 am
This week, Congress passed an omnibus appropriations and $900 billion COVID-19 relief package. Nestled among the nearly 5,600-page legislation are important policy changes to higher education and a down payment to address the immediate needs of colleges and students in dealing with the COVID-19 pandemic.
The result includes a host of long-awaited policy improvements such as simplifications to the Federal Application for Financial Student Aid (FAFSA); billions in funding to institutions and students; and the restoration of financial aid eligibility for students in prison. Unfortunately, the package has two major exclusions: 1) It does not extend the payment and collections pause on federal student loans, which is currently set to expire on January 31, 2021; and 2) it lacks funding for state and local governments, creating a risk that additional college money could be hollowed out by state cuts.
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