- Student debt cancellation update
- DACA faces continued challenges
- NRPM comments due soon
- Upcoming events
- Funding opportunities
Student debt cancellation update
President Joe Biden last week vetoed Congressional Republicans’ legislation to cancel the administration’s broad student debt cancellation plan. The bill, House Resolution 45, passed both the Republican-held House and the Democrat-held Senate, but will not be able to generate the two-thirds majority needed to override a presidential veto.
While Congress was not able to nullify the debt cancellation plan via legislation, lawmakers did secure a firm end to the student loan payment pause as part of the debt ceiling deal. The Fiscal Responsibility Act requires the U.S. Education Department to end the suspension of student loan payments and interest accumulation 30 days after June 30. ED officials told Politico that they will take a phased-in approach, with interest resuming on September 1 and payments due for borrowers beginning in October. The Biden administration previously indicated that it would end the pause 30 days after June 30 or 30 days after the Supreme Court ruled on the student debt cancellation plan, whichever came first.
While the department has anticipated the repayment resumption, colleges, servicers and student-debt advocates have raised alarm bells. Borrowers who graduated in the past three years will enter repayment for the first time. Due to contract changes, millions of borrowers have been assigned to new servicers since they last made payments. And new data from the Consumer Financial Protection Bureau (CFPB) show that borrowers’ financial circumstances are more precarious than in the period before the repayment pause, with increased non-student debt burdens and higher rates of delinquency. Put together, students and borrowers will face greater risk of loan default and will likely need additional support from servicers and colleges. Ultimately, this could have an effect on the delinquency and default rates of institutions, which is a prime concern of AACC members.
DACA faces continued challenges
As higher education advocates await Supreme Court decisions on student debt relief and affirmative action for colleges and universities, concerns are growing about the future of the Deferred Action for Childhood Arrivals (DACA) program. DACA allows undocumented individuals who were brought to the U.S. as children to apply for renewable two-year authorizations to remain in the country and receive work permits. Thousands of DACA recipients attend community colleges. AACC has long supported the bipartisan, bicameral Dream Act, which provides DACA recipients with a path to citizenship.
Last week, U.S. District Judge Andrew Hanen heard arguments brought by nine Republican states who claim that the program represents executive overreach and harms states in the form of millions of dollars in health care, education and social program costs for DACA recipients. While Hanen did not immediately rule on the case, an outcome is expected in the coming weeks. Regardless of the ruling, advocates expect the case to again end up before the Supreme Court.
NPRM comments due soon
Last month, ED released a new slate of Notices of Proposed Rulemaking (NRPM), a critical step following last year’s negotiating rulemaking table. The proposed regulations cover Ability-to-Benefit, Administrative Capability, Certification Procedures and the highly anticipated return of Gainful Employment (GE) – key rules governing federal student aid eligibility for Title-IV eligible programs. AACC last week hosted a webinar on proposed GE regulations and what they will mean for community colleges.
The 30-day comment period will end next week. AACC will submit comments on behalf of community colleges, which will be available on the AACC website.
Related article: ED proposes gainful employment and related rules
Upcoming events
AACC on June 15 will host a Congressional briefing on Pell grants, covering issues such as expanding Pell eligibility to students in workforce programs, new Pell eligibility for students in prison and the tax treatment of the grant. Speakers include:
- Rep. Burgess Owens (R-Utah), chair of the House Education and Workforce Committee’s Subcommittee on Education and Workforce Development
- Walter Bumphus, AACC president and CEO
- Jermaine Williams, president, Montgomery College (Maryland)
- Yerenmy Zelaya, student, Montgomery College
- Federico Zaragoza, president, College of Southern Nevada
- Deneece Huftalin, president, Salt Lake Community College (Utah)
- David Baime, AACC senior vice president for government relations
On June 14, Virginia Peninsula Community College President Towuanna Porter Brannon will testify before the House Higher Education and Workforce Development Subcommittee at a hearing that will examine postsecondary innovation to prepare students for opportunities.
Funding opportunities
Applications are open for key community college funding opportunities:
- Rural Postsecondary and Economic Development Grant Program – Due June 20
- Building Pathways to Infrastructure Jobs Grant Program – Due July 7 for the first round
- Child Care Access Means Parents in Schools (CCAMPIS) Grant Program – Due July 31
- Advanced Technological Education (ATE) – Due October 5
For more detailed information on these issues, visit the Community College Advocacy Updates page on our website. Send questions, feedback and more to: kgimborys@aacc.nche.edu.
