The volume and number of federal student loans, which provide financing to make higher education more accessible, have grown over the past few decades. In 2017, the most recent year for which detailed information was available, $96 billion in new federal student loans was disbursed to 8.6 million students, compared with $36 billion (in 2017…

This hearing of the Committee on Health, Education, Labor, and Pensions focuses on reauthorizing the Higher Education Act through improving college affordability. The following committee members presented opening statements: (1) Honorable Lamar Alexander, Chairman, Committee on Health, Education, Labor, and Pensions; and (2) Honorable Patty…

A quality education is the primary instrument of social and economic mobility in the United States. As open-access institutions, community colleges are the gateway to postsecondary education for millions of Americans. Many of these students would be unable to afford college without federal resources, such as student financial aid and tax credits.…

To provide greater understanding, Trellis Research recently conducted a mixed-methods, outcomes-based study of parent PLUS borrowers in Texas. The study, "PLUS Borrowing in Texas: Repayment Expectations, Experience, and Hindsight by Minority-Serving Institution Status," provides a rare look into the repayment behavior of Parent PLUS…

For nearly 50 years, the cost of higher education has risen faster than the pace of inflation, with federal student aid contributing to increasing tuition. In 1987, Secretary of Education William J. Bennett penned a "New York Times" article, "Our Greedy Colleges," in which he wrote, "If anything, increases in financial aid…

Americans believe in the value of a college education, but worry about its price. Recent surveys show large majorities affirming the importance of postsecondary education, but characterizing it as too expensive and sometimes financially out of reach. This Statistics in Brief describes three measures of the price of undergraduate education in the…

The William D. Ford Federal Direct Loan (DL) program, authorized under Title IV, Part D of the Higher Education Act of 1965 (HEA), as amended, is the primary federal student loan program administered by the U.S. Department of Education (ED). The program makes available loans to undergraduate and graduate students and the parents of dependent…

The degree to which students are able to make adequate repayments on their student loans and avoid default is of special concern for colleges. If too many former students go into default, the college will face sanctions by the federal government and lose eligibility to provide currently enrolled students federal financial aid, such as the Pell…

Each year, millions of college students borrow money to help bridge the gap between college costs and available income, savings, and grants. Experts all agree that, for those who need to borrow to pay for college, federal student loans are the safest and most affordable option. Unfortunately, some colleges choose not to participate in the federal…

This year, more students are applying and qualifying for need-based financial aid and more financial aid offices are being asked to reassess financial aid packages to reflect recent changes to families' financial situations, according to a recent survey by the National Association of Student Financial Aid Administrators. "This survey…

More than three-quarters of postsecondary institutions (79 percent) would prefer expanding the current Perkins Loan program rather than replacing it with the Direct Perkins Loan program being proposed in Congress, according to a recent survey of NASFAA-member schools. In fact, increasing unsubsidized Stafford Loan limits (80 percent) and lowering…

This paper discusses what federal student aid is and how to apply for it. It also provides a list of federal student aid programs for 2011-12. Federal student aid comes from the federal government--specifically, the U.S. Department of Education. It's money that helps a student pay for education expenses at a postsecondary school (e.g., college,…

In 2002, the Government Accountability Office (GAO) reported that veteran students were awarded similar amounts of Title IV aid as nonveteran students, and veterans' total federal aid was greater when Chapter 30 GI benefits were included. This report responds to request from the Subcommittee on Economic Opportunity, Committee on Veterans' Affairs…

As the number and volume of student loans increase nationally, lenders and policymakers look more closely at the use of loan forbearance. This paper examines whether forbearance really cuts the risk of loan default by reporting on a study of more than 9,800 Stafford loans in forbearance in December 1996. That research shows that the default rate…

A study of the rate of growth in Stafford student loan debt levels compiled average indebtedness figures for graduate students, undergraduate students, proprietary students, and students enrolled in community colleges and other 2- and 3-year institutions. The study also attempted to develop payment stress indicators by tracking payment status data…