Another federal student loan servicer is calling it quits -->

Granite State Management & Resources, which has 1.3M borrower accounts, says it won't seek renewal of contract w/ @usedgov after Dec. 31.…
@usedgov Granite State is dropping out after same decision by the much larger PHEAA/Fed Loan Servicing (~9M borrower accounts) earlier this year.

Biden admin is now going to have to reassign ~10M borrower accounts this fall.

Full statement from @FSACOO Rich Cordray:
@usedgov @FSACOO The announcement was made by the New Hampshire Higher Education Assistance Foundation (NHHEAF) Network, which is a trade name of the New Hampshire Higher Education Loan Corporation, which operates its loan servicing biz under the name Granite State Management & Resources. Got it?
(I was confused by this - but also learned today that so were Illinois regulators:…)
.@SenWarren, longtime critic of the Ed Dept's approach to student loan servicing, says the changes "present a golden a golden opportunity to fix the system"

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More from @mstratford

11 Jun
New - @usedgov says it needs an extra year to implement the major overhaul to the FAFSA that Congress approved in Dec.

The new, simplified aid application won't debut until 2024-25 school year -- instead of 2023-24 as required in the law, @FAFSA says.…
Background on the bipartisan deal that's supposed to drastically reduce questions on the FAFSA (from 108 to 36) -- it was included in the year-end govt spending & covid relief deal that Trump signed in Dec.:…
Biden admin says antiquated tech systems @usedgov are prompting the yearlong delay:…

There's bipartisan interest in Congress in a legislative deal to extend the deadline for Ed Dept to make the FAFSA changes.

.@virginiafoxx is on board, per spox: Image
Read 5 tweets
20 Dec 20
New – Key Congressional leaders have agreed to reinstate Pell grants for incarcerated students as part of a deal on a package of higher ed policies expected to be included in year-end omnibus spending bill, per aides:…
Deal would lift longtime ban on Pell for incarcerated students that Congress imposed in '94 crime law signed by Bill Clinton & championed by then-Sen. Biden.

House approved bill w/ provision eliminating ban on Pell for prisoners over the summer.
Broad coalition has backed the effort -- incl. NAACP, ACLU, FreedomWorks, business groups, faith-based orgs, prosecutors, corrections officials.

.@BetsyDeVosED expanded & championed the Obama-era Second Chance Pell pilot program--and has called for Congress to make it permanent
Read 4 tweets
14 May 20
House Democrats are significantly scaling back the student loan forgiveness provisions in their $3T coronavirus relief package, citing concerns about the cost:…
Initial plan would have provided up to $10K in loan forgiveness to all borrowers:

Revised plan would limit the $10K in loan forgiveness only to those borrowers who were “economically distressed” on the day *before* Trump declared a coronavirus national emergency (March 12).
Borrowers would be considered "economically distressed" if their monthly payment under an income-based repayment plan was zero. Borrowers who are delinquent or in default -- or in financial hardship deferment or forbearance -- also qualify.
Read 7 tweets

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