On Monday February 4th, Chairman Alexander laid out his priorities for the 2019 reauthorization of the Higher Education Act (HEA).
Chairman Alexander discussed FAFSA simplification and student loan program changes as targets for HEA reauthorization. He stated a desire to cut down the number of questions in the FAFSA from 108 to 15-20, deeming most of the questions as unnecessary. Additionally, Chairman Alexander wants to simplify the verification process so funds are not unnecessarily withheld from students when needed.
Aside from simplification of the FAFSA, Chairman Alexander wants to change the student loan program options from nine current options to two. The first option would allow students to partake in a payment plan that automatically deducts 10% of their discretionary income from their paycheck. A key component to this plan allows borrowers to stop payments if they become unemployed. This halt in payments would not affect their credit score. The proposed second option for a student’s repayment of loans would be a 10-year payment plan, similar to a mortgage. For more information regarding Chairman Alexander's priorities for the Higher Education Act, please use the link below.
An agenda for higher education reform: Remarks by Senate HELP Committee Chairman Lamar Alexander
