{"id":561765,"date":"2023-03-10T05:17:00","date_gmt":"2023-03-10T02:17:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/"},"modified":"2023-03-10T05:17:00","modified_gmt":"2023-03-10T02:17:00","slug":"white-house-budget-assumes-student-debt-forgiveness-will-move-forward","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/","title":{"rendered":"#: White House budget assumes student-debt forgiveness will move forward"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af461da3db0c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af461da3db0c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/#%E2%80%9C_White_House_budget_assumes_student-debt_forgiveness_will_move_forward%E2%80%9D\" >&#8220;: White House budget assumes student-debt forgiveness will move forward&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/#The_Department_of_Educations_request_for_funding_for_the_Office_of_Federal_Student_Aid_took_into_account_the_costs_and_savings_from_the_plan\" >The Department of Education\u2019s request for funding for the Office of Federal Student Aid took into account the costs and savings from the plan<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/#Like_the_IRS_FSA_may_not_%E2%80%98seem_sexy_but_its_important\" >Like the IRS, FSA may not \u2018seem sexy,\u2019 but it\u2019s important<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/white-house-budget-assumes-student-debt-forgiveness-will-move-forward\/#Jillian_Berman\" >Jillian Berman<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_White_House_budget_assumes_student-debt_forgiveness_will_move_forward%E2%80%9D\"><\/span>&#8220;: White House budget assumes student-debt forgiveness will move forward&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_Department_of_Educations_request_for_funding_for_the_Office_of_Federal_Student_Aid_took_into_account_the_costs_and_savings_from_the_plan\"><\/span>\n  The Department of Education\u2019s request for funding for the Office of Federal Student Aid took into account the costs and savings from the plan<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001771214\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001771214\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Borrowers across the country are in financial limbo as they wait for the Supreme Court to decide whether the White House\u2019s student-debt cancellation plan is legal. But the Biden administration\u2019s own financial planning presumes the initiative will survive the courts.\u00a0<\/p>\n<p> As part of the Department of Education\u2019s funding request to Congress for $2.7 billion for the Office of Federal Student Aid, officials took the costs and savings into account of President Joe Biden\u2019s plan to cancel up to $20,000 in student debt for a wide swath of borrowers, Undersecretary of Education James Kvaal said on a conference call with reporters Thursday.\u00a0\u00a0<\/p>\n<div class=\"paywall\">\n       The \u201cbudget assumes that we will move forward,\u201d with the plan, Kvaal said.\u00a0<\/p>\n<p>The fiscal-year 2024 funding request unveiled Thursday marks the latest salvo in a battle over the money Congress will give FSA. If the courts allow the Biden administration\u2019s debt-relief plan to move forward, FSA would be charged with implementing it. That\u2019s made FSA funding a flashpoint for congressional Republicans in recent months. But FSA is also responsible for almost every aspect of the financial-aid and student-loan system, something that could be put at risk if the office doesn\u2019t get enough money from Congress.\u00a0<\/p>\n<p>Biden administration officials didn\u2019t provide much detail on the call with reporters about how debt cancellation impacted the Department of Education\u2019s request for funding for FSA. Implementing the debt-relief plan would likely be a cost, but wiping borrowers off the books could also save the agency money because there would be fewer accounts to deal with.\u00a0<\/p>\n<p>\u201cMy assumption is that if you take cancellation into account, the budget request would be smaller than it would be if you assume cancellation is not h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening,\u201d said Sarah Sattelmeyer, the project director for education, opportunity and mobility in the Higher Education Initiative at New America, a think tank.\u00a0\u00a0<\/p>\n<p>That could create challenges if the court strikes down debt cancellation, she said. \u201cThe bottom line is, really we need to make sure there are sufficient resources for any situation that might happen with FSA,\u201d she said. \u201cThat\u2019s the most important because when there aren\u2019t sufficient funds, students and borrowers bear the brunt of that.\u201d\u00a0<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Like_the_IRS_FSA_may_not_%E2%80%98seem_sexy_but_its_important\"><\/span>Like the<strong> IRS<\/strong>, FSA may not \u2018seem sexy,\u2019 but it\u2019s important<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Though FSA is not a household name, the office is in charge of all sorts of seemingly wonky tasks that touch almost every student and borrower. FSA oversees the Free Application for Federal Student Aid, which college students use to apply for loans and grants; it disperses student loans to borrowers; manages the companies collecting student-loan payments; monitors colleges for wrongdoing and more.\u00a0<\/p>\n<p>That\u2019s why many researchers and student-loan borrower advocates were concerned when Congress level-funded FSA last year, despite a request from the Department of Education for an uptick of $800 million. Congressional Republicans touted the decision as providing \u201cno new funding for the implementation of the Biden administration\u2019s student-loan forgiveness plan.\u201d\u00a0<\/p>\n<p>Dominique Baker, an associate professor of education policy at Southern Methodist University, compared FSA to the Internal Revenue Service. \u201cIt doesn\u2019t always seem sexy,\u201d to lawmakers to increase funding for these types of bodies, she said, but a lack of funds can have a real impact.\u00a0<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>She cited delays in borrowers qualifying for relief under already existing programs as one impact of an underfunded FSA. Last year, the Department of Education said that student-loan servicers weren\u2019t <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ed.gov\/news\/press-releases\/department-education-announces-actions-fix-longstanding-failures-student-loan-programs\" class=\"icon none\">properly tracking<\/a> the number of payments borrowers made toward qualifying for forgiveness under certain student-loan repayment plans.\u00a0\u00a0\u00a0<\/p>\n<p>\u201cIt is important to ensure that college is affordable,\u201d Baker said. \u201cIt is sometimes easier to talk about funding pieces that make college more affordable than it is to talk about compliance and regulatory bodies that are ensuring that this one piece of paper that gets shuffled over to this other desk happens in a timely manner.\u201d If it doesn\u2019t, she added, \u201cyou will accidentally pay five months of extra loan payments past when your debt should have been canceled.\u201d\u00a0\u00a0<\/p>\n<p>Over the past few years, FSA has been asked to do even more than what\u2019s typically required. Many of the Biden administration\u2019s initiatives to improve the student-loan experience, including making it easier for borrowers to access Public Service Loan Forgiveness and proposing sweeping changes to the way borrowers repay their student loans, fall under FSA\u2019s purview.\u00a0<\/p>\n<p>In addition, FSA is in the middle of overhauling its student-loan servicing contracts in an aim to provide a better experience for borrowers. Things like giving more direction to student-loan servicers about how they communicate with borrowers about their loans, and ensuring student-loan companies are more responsive to issues borrowers and regulators have raised in litigation, are part of that effort and will require resources, said Clare McCann, a higher-education fellow at Arnold Ventures.<\/p>\n<p>\u201cAll of that is incredibly important to making sure borrowers are going to have a smooth transition back into repayment, when that does happen,\u201d she said.\u00a0<\/p>\n<p>It\u2019s too early to say which of these priorities could be at risk because of Congress\u2019 decision to level-fund FSA last year, Sattelmeyer said. \u201cWe don\u2019t have a great idea yet of the tradeoffs FSA is going to make, but they\u2019re going to have to make tradeoffs,\u201d she said.\u00a0<\/p>\n<p>For fiscal-year 2024, the Biden administration has asked for a $620 million increase over the amount that Congress enacted for fiscal-year 2023. And if FSA doesn\u2019t get that funding increase, researchers and advocates worry the office will continue to have to make tradeoffs that could hurt students and borrowers.<\/p>\n<p>\u201cD.C. is and remains a political town,\u201d Sattelmeyer said of the possibility that the department\u2019s funding increase for FSA could fall victim to the same forces that scuttled it last year. \u201cI can\u2019t predict the future, but I can say that it is really important to message,\u201d through the budget, \u201cthat FSA needs additional resources,\u201d she said. \u201cIt\u2019s also important for practitioners and advocates and others in this space to be pushing for additional resources.\u201d\u00a0<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jillian Berman\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/marketwatch.com\/author\/jillian-berman\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/JillianBerman\",\"text\":\"@JillianBerman\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:jberman@marketwatch.com\",\"text\":\"jberman@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n              <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/jillian-berman\" aria-label=\"Jillian Berman author page\"><\/p>\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jillian_Berman\"><\/span>Jillian Berman<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/a><ufc-follow-author-widget product=\"marketwatch\" author-id=\"88_MW\" author-name=\"Jillian Berman\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fwhite-house-budget-assumes-student-debt-forgiveness-will-move-forward-5bdedd9e%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-71B0-6CEF7E901530%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: White House budget assumes student-debt forgiveness will move forward&#8221; The Department of Education\u2019s request for funding for the Office of Federal Student Aid took into account the costs and savings from the plan Borrowers across the country are in financial limbo as they wait for the Supreme Court to decide whether the White House\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":561766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-648473\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-561765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=561765"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/561766"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=561765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=561765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=561765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}