The U.S. Department of Education on April 6, 2022 announced an extension of the pause on student loan repayment, interest, and collections through August 31 of this year. Although the economy continues to improve and COVID cases continue to decline, President Biden has made clear the ongoing need to respond to the pandemic and its economic consequences, as well as to allow for the responsible phase-down of pandemic relief. The extension will provide additional time for borrowers to plan for the resumption of payments, reducing the risk of delinquency and defaults after restart. During the extension, the Department will continue to assess the financial impacts of the pandemic on student loan borrowers and to prepare to transition borrowers smoothly back into repayment. Efforts include allowing all borrowers with paused loans to receive a “fresh start” on repayment by eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing.
Payments and interest accrual have been paused for borrowers with federal student loans since March 13, 2020, at the beginning of the pandemic. The previous pause was scheduled to expire on May 1, following a 90-day extension that was announced as cases of the Omicron variant of Covid-19 surged in December 2021. Approximately 40 million individuals owe about $1.7 trillion in federal student debt, an amount larger than credit card or auto debt. Federal loans make up more than 90% of outstanding student debt. Borrowers with private loans are not eligible for the pause in payments, although some lenders and servicers have offered flexibility.
FY 2023 Budget Proposal Contents Involving Higher Education
The Biden Administration on March 28, 2022 submitted to Congress the President's Budget for fiscal year 2023 that begins on October 1 of this year. As a means of increasing equitable and affordable access to an education beyond high school, the budget would increase the maximum Pell Grant by $2,175 over the 2021-2022 award year, through a combination of discretionary and mandatory funding, helping an estimated 6.7 million students from low- and middle-income backgrounds overcome financial barriers. The proposed increase is a significant step in the budget's comprehensive proposal to double the maximum Pell Grant by 2029. Additionally, the Administration continues to support expanding federal student aid, including Pell Grant eligibility, to Deferred Action for Childhood Arrivals (DACA) recipients, commonly known as DREAMers.
The budget proposal also calls for enhancing institutional capacity at Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), Minority Serving Institutions (MSIs), and low-resourced institutions, including community colleges, by providing an increase of $752 million over the 2021 enacted level. This funding includes a $450 million initiative to expand research and development infrastructure at four-year HBCUs, TCCUs, and MSIs.
Growth In The Number of Master’s-Degree Programs In Less Than A Decade
Readers of the Chronicle of Higher Education had an opportunity on March 24, 2022 to learn about the rapid growth in the number of master’s-degree programs in the period 2011-12. According to data from the U.S. Department of Education, colleges and universities have added more than 9,000 of these programs. A Chronicle analysis of more than 2,200 public, private nonprofit, and private for-profit colleges from 2011-12 to 2019-20 found that about 60% of those institutions experienced growth in the number of master’s programs they offered. Growth spanned institutions of all types and sizes, including bachelor’s, master’s, doctoral, and four-year special-focus institutions.
Yale University increased its master’s programs by 1.2%, while Gordon College, a small private institution in Massachusetts, went from having two such programs in 2011-12 to 25 in 2019-20, a 1,150% increase. Approximately 160 colleges, nearly all institutions with fewer than 5,000 students, did not have a single master’s program in 2011-12, but had at least one by 2019-20. One institution, the online arm of Johnson & Wales University, ended up with 18 such programs.