September 1, 2022 – Jonathan McCollum, Chair of the Federal Government Relations practice was featured in Forbes on their article “$94 Billion in New Student Loans Every Year: Why Loan Forgiveness May Not Solve Anything”.
President Biden’s student loan forgiveness plan includes a brand-new, income-driven repayment plan that would require lower monthly payments based on 5% of discretionary income as well as more fixes to the Public Service Loan Forgiveness.
Jonathan pointed out that the “current student debt crisis is a result of increases in tuition costs that have outpaced inflation. He added that the Pell Grant provides a real example of the most fundamental federal student assistance program targeted at low-income students. And although Pell Grants were generous enough to cover around 80% of the costs associated with higher education at public, four-year schools in the 1970s, they’re now only enough to cover about 30% of college costs.”
Jonathan also stated that “Congress should move forward on legislation that would double the maximum Pell Grant and that they should consider extending the program to include middle-income brackets that still need financial aid.”
He said, “The government should be looking at cutting or significantly lowering interest rates, and allowing borrowers to pay down their debt without growing the principal. And those who may benefit from existing loan forgiveness programs must be able to access them without navigating a maze of red tape.”
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