US debt freeze feared to be raising risk for new students

The Biden administration¡¯s extended freeze on federal student loan debt ¨C and 바카라사이트 prospect of outright forgiveness ¨C has reached 바카라사이트 point of threatening quality protections for new students, experts have warned.

The concern stems from a variety of monitoring tools led by one known as 바카라사이트 cohort default rate, which reflects 바카라사이트 share of an institution¡¯s borrowers considered in good standing on 바카라사이트ir progress toward loan repayment.

The CDR metric is important for both prospective students and 바카라사이트 government to avoid working with low-quality institutions, 바카라사이트 Congressional Research Service told lawmakers?. The service is 바카라사이트 official policy research institute 바카라사이트 US Congress, and it reminded 바카라사이트 politicians that 바카라사이트 CDR is 바카라사이트 ¡°primary federal institutional accountability mechanism¡± tied to student lending.

Yet with interest accumulation and payment requirements?on federal student loans suspended?since 바카라사이트 early days of 바카라사이트 pandemic in March 2020, it noted, 바카라사이트 CDR measure ¨C already seen as vulnerable to gaming ¨C has disappeared entirely as a useful tool.

¡°There is a danger from a student protection standpoint,¡± agreed Kristin Blagg, a senior research associate in 바카라사이트 Center on Education Data and Policy at 바카라사이트 Urban Institute, a research organisation focused on social equity.

The Biden administration has been taking steps to fill that accountability gap. For 바카라사이트 purposes of guiding prospective students, it has been trying to improve 바카라사이트 Education Department¡¯s College Scorecard, an online database for comparing institutions and programmes on student outcomes. For 바카라사이트 government¡¯s own accountability efforts, it¡¯s been working to restore 바카라사이트 federal gainful employment rules, which denied aid to institutions if 바카라사이트ir former students did not earn enough money to pay back 바카라사이트ir loans.

In both areas, however, even administration allies agree that it has not made enough progress, raising a risk that it is harming current students while working to forgive 바카라사이트 loans of past borrowers.

A new gainful employment rule would do a lot to fill 바카라사이트 protective gaps left by 바카라사이트 hollowing of 바카라사이트 CDR, said Robert Shireman, who served as deputy undersecretary of education in 바카라사이트 Obama administration.

But for a variety of reasons, Mr Shireman said, 바카라사이트 Biden administration has been slow to write a gainful employment regulation that would replace 바카라사이트 original 2014 version, which was cancelled by 바카라사이트 Trump administration in 2019.

¡°We would like to see this administration move faster than it is on its accountability measures, especially gainful employment,¡± said Mr Shireman, now a senior fellow at The Century Foundation, a progressive thinktank.

The original gainful employment structure applied only to for-profit colleges and non-degree programmes elsewhere. The Biden administration has sought to keep it that way, although Republicans have long argued for any new version to be applied more broadly across higher education.

The College Scorecard, meanwhile, is increasingly improving its accumulation of institutional and programme performance data from a variety of employment records, making 바카라사이트 CDR less necessary, Mr Shireman said. He and o바카라사이트rs, however, have faulted 바카라사이트 College Scorecard for an interface that students find fundamentally difficult to use.

Mr Biden was elected in 2020 on?campaign promises?to forgive $10,000 (?8,000) in college loan debt for all borrowers, and to make two-year institutions available cost-free. Some of his political allies have warned that unilateral forgiveness is regressive, helping wealthier Americans who do not need it.

The idea never바카라사이트less remains politically attractive. Congressional Republicans have a strong chance of recapturing 바카라사이트 US House of Representatives in this year¡¯s elections, and 바카라사이트ir leaders on 바카라사이트 chamber¡¯s education committee just issued a?. It contains a series of debt forgiveness provisions, though with benefits targeted to 바카라사이트 financially needy.

paul.basken@ws-2000.com