Title IV of the Higher Education Act of 1965 (HEA; P.L. 89-329, as amended) authorizes the operation of three federal student loan programs: the William D. Ford Federal Direct Loan (Direct Loan) program, the Federal Family Education Loan (FFEL) program, and the Federal Perkins Loan program. While new loans are currently authorized to be made only…

In August 2022, the U.S Department of Education (ED) announced it would invoke the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act) to cancel up to $20,000 of federal student loan debts for borrowers who fell below certain income thresholds. The HEROES Act authorizes the Secretary to "waive or modify" statutory…

The Biden Administration has taken numerous actions to address student loan debt. These actions have ranged in scope (both in terms of the borrower populations affected and associated modification costs), their rationales, and the avenues through which they were taken (e.g., formal rulemaking procedures, issuance of guidance). One effect of these…

Between 1965 and 2010, most federal student loans were issued by private lending institutions and guaranteed by the government, and most student loan borrowers made fixed monthly payments over a set period--typically 10 years. Since 2010, however, all federal student loans have been issued directly by the federal government, and borrowers have…

In February 2020, the Congressional Budget Office released a report on the budgetary effects of student loans repaid through income-driven plans. This paper provides additional information on the analysis the agency conducted on the characteristics of borrowers in those plans and the methods the agency used to project borrowers' earnings,…

In response to the current Coronavirus Disease 2019 (COVID-19) pandemic, numerous questions have arisen regarding student loan repayment flexibilities and debt relief that may be available to individuals to alleviate potential financial effects related to COVID-19. The Higher Education Act of 1965 (HEA) generally authorizes several options for…

The Higher Education Act of 1965 (HEA; P.L. 89-329, as amended) authorizes the operation of three federal student loan programs: the William D. Ford Federal Direct Loan (Direct Loan) program, the Federal Family Education Loan (FFEL) program, and the Federal Perkins Loan program. While new loans are authorized to be made only through the Direct…

The student loan crisis has become a buzz topic that presidential candidates frequently discuss in debates and town halls. Today, accumulated student loan debt equals $1.6 trillion, exceeding total accumulated car loans and credit card debt. What makes this a crisis is the fact that approximately 22 percent of student loan borrowers default on…

This report identifies and describes federal student loan forgiveness and loan repayment programs that are currently authorized by federal law. It provides brief, summary descriptions of identified programs. These program descriptions are intended to provide policymakers with general information about the purpose of existing programs and how they…

The author has spent much of his working life studying and promoting student loans. As a good liberal Democrat, he spent years arguing for the expansion of the old Federal Family Education Loan Program (FFELP) which had its roots in Lyndon Johnson's War on Poverty. His professional life included stints working for one of the nonprofit FFELP…

American consumers owe more than $150 billion in outstanding private student loan debt. While this amount is significantly less than the amount outstanding on student loans guaranteed by the federal government, the private student loan ("PSL") product is an important component of higher education finance and does not appear to be well…

The credit market in the United States currently suffers from a rare and serious disruption. Once flowing with liquidity, the creativity and vibrancy of these markets helped fuel an economy that had been the envy of the world. Poor repayment performance in the subprime mortgage market has now reduced the availability of funds needed for other…

This handy desk reference will help readers and their institutions develop and maintain a professional environment that will maximize efficiencies and provide the necessary skills to properly manage operations and portfolios while ensuring that students receive fair and equitable service and opportunities. Written for business officers, financial…

Certain state or not-for-profit agencies guarantee payment to banks and other lending institutions if students fail to repay loans obtained through the Federal Family Education Loan Program. The 1998 amendments to the Higher Education Act authorize the Secretary of Education to enter into voluntary flexible agreements (VFAs) with individual…

The federal government assists students and their parents in meeting the costs of postsecondary education through two student loan programs, the Federal Family Education Loan Program and the William D. Ford Direct Loan Program. Although the two programs provide similar benefits to borrowers, their structures and operations differ greatly. As a…