WASHINGTON — Despite the appeal of a “simplified” version of the federal student aid system, efforts to move toward a single loan and grant program and a simpler version of the Free Application for Federal Student Aid, or the FAFSA, could actually make things worse for low-income students.
That was one of the key arguments made Tuesday at a U.S. House higher education subcommittee hearing on ways to improve the way the federal government issues grants and loans.
“There is a lot of discussion about ‘simplifying’ the loan programs, which often means reducing the number of borrowing and repayment options for students or eliminating other critical benefits,” said Youlonda Copeland-Morgan, vice provost for enrollment management at the University of California, Los Angeles.
“Congress must reject proposals like this and instead support changes that enhance student benefits and improve how student loans are administered, disbursed, serviced, and repaid,” Copeland-Morgan said.
A “one loan” proposal that has been put forth as a possible option under Higher Education Act reauthorization would eliminate the undergraduate in-school interest subsidy, which would result in a loss of $41 billion to student borrowers, Copeland-Morgan said. The proposal would also eliminate the Grad and Parent PLUS loans.
A budget proposal released recently by the administration of President Donald J. Trump would eliminate the Federal Supplemental Educational Opportunity Grant program, which enables campuses to provide grants to the neediest students.
“We’re advocating, especially because of the loss of purchasing power in Pell Grants, that we retain these programs,” Copeland-Morgan said. “They work.”
