Almost 27 million borrowers with federal student loans are set to start repayments in February, but some have succeeded in erasing their debt through the Public Service Loan Forgiveness program (PSLF).

The program ran into trouble a few years ago, and fewer than 5% of applicants were approved for loan forgiveness despite tracking their payments for a decade, as required.

Yvonne Dowell, a Baltimore mental-health counselor, was initially denied, but she reapplied after the Biden administration overhauled the program this fall. She recently found out not only did she qualify for loan forgiveness, she was reimbursed for the 18 months of payments she made after her first application.

"When I was denied, I was devastated," Dowell recounted. "So, I do know that in the past, it did not work. However, by all means, know that things have changed, and they have revamped that program. And the program works."

Dowell wants to spread the word to help others benefit from the PSLF limited waiver, which expands the types of qualifying payment plans and loan programs. Student borrowers have until Oct. 31 of next year to apply.

With a starting public-sector salary in the mid-30s, Dowell struggled to pay off her student loan at more than $200 a month, while also putting her children through college. She contended groups like the American Federation of Teachers should be applauded for their work to help change the program. It ultimately ended her debt, which totaled more than $70,000.

"This program will help single mothers that are paying to go to school," Dowell emphasized. "And anyone that's in an income that's going to cause a struggle and has to take that student loan out to pursue their dreams."

Sen. Chris Van Hollen, D-Md., joined with Senate colleagues asking the Biden administration to continue waiving interest on federal student loans for the duration of the COVID-19 emergency. The pandemic moratorium on federal student loan payments expires Jan. 31.

New Mexico is taking a deep dive into its funding of public colleges and universities to determine if inequities need to be addressed. The Higher Education Sustainability Study will review and recommend changes to the formula used to fund higher ed.

Gerald Hoehne, director, Capital Outlay Division with the New Mexico Higher Education Department, said it will look at possible inequities among the full range of sectors - from colleges and universities to research institutions, independent community colleges and branch campuses.

"The differences between community colleges and research institutions - those differences have come into how they're funded. So, this study gives us an opportunity to look at that in more detail," he said.

Community colleges disproportionately serve low-income students and students of color, but New Mexico is among the majority of states where two-year institutions receive thousands of dollars less in education revenue per student enrolled than four-year institutions, according to a 2020 study by the Center for American Progress.

Hoehne expected study results to be available by mid-October ahead of the 2025 legislative session, so lawmakers have insight and can make changes they feel are needed. The Legislature earmarked $187 million for higher education in 2024 - more than double last year's investment and one of the largest investments in higher education in state history. Hoene said an initiative within the study will look at how New Mexico's funding compares to other states.

"To understand if there is different ways in which other states are addressing the different types of institutions and how we potentially may be able to incorporate any changes to our process to address those differences," he continued.

The National Center for Higher Education Management Systems is conducting the equity study on behalf of the state.

New York's 2025 budget creates universal access to the Free Application for Federal Student Aid program.

School districts statewide will have the resources to help high schoolers complete the application. Those who do not fill it out must sign a waiver stating they know of the available aid but are not pursuing it.

Sen. Andrew Gounardes, D-Sunset Park, the bill's sponsor, said FAFSA's required information can be daunting.

"Some students or some families are well-prepared and well-equipped to review that document and provide that information; some students might not be," Gounardes acknowledged. "Some students might not even know where to turn to get that information, especially if they're the first in their family to pursue college if they're the first generation here."

Some schools have moved closer to charging $100,000 a year for tuition, which Gounardes said can deter students from considering college. But through the FAFSA process, scholarships and grants can provide enough to shave the number down to a more reasonable figure. A Sallie Mae report showed college spending is up as families spend close to $28,000 each year on college.

Feedback for the proposal was positive, considering most high school seniors who complete the FAFSA are likely to go to college after graduation. Gounardes argued the state can build on the progress by reviewing admissions practices to ensure they are fair and do not exclude students from certain backgrounds.

"In particular, I think it's high time we end legacy admissions," Gounardes emphasized. "There's no reason why we should have affirmative action for privileged kids in New York state, especially from institutions that receive significant public dollars either for grants or construction or awards or this or that or whatever."

He introduced a bill ending legacy admissions, which is still in committee. Among public and private colleges in New York, 42% still consider legacy applicants for admissions.

More than 70% of adults with student loans report having delayed at least one significant life event because of their debt situation, yet a new Lumina Foundation-Gallup poll shows few Americans seem to understand the cost of obtaining a bachelor's degree.

During the 2021-22 academic year, the average cost of attendance ranged from $10,000 per year at public two-year institutions to more than $56,000 per year at private four-year nonprofit colleges.

Michele Scott Taylor, Ph.D - is president of College Now Greater Cleveland, a nonprofit that works to increase higher education accessibility.

She said for students who are potentially first-generation college goers or from lower socio-economic backgrounds, the conversations around college affordability can be overwhelming.

"The issue for that subset of the population is really around helping them understand what college costs, but then more importantly, how do I afford it?" said Taylor. "What are the ways in which that I could afford whatever that cost might be? "

The poll found that more than half of never-enrolled and previously enrolled adults say cost is a "very important" reason why they have not enrolled or re-enrolled in college.

Unenrolled adults across race, age and first-generation potential students consistently rate tuition cost as the most important factor in their decision to not pursue a college degree.

Taylor said more efforts should also go toward helping students persist and complete their degree, once they've signed up for those loans.

She said higher-education institutions could work better with college access organizations to communicate their programs and offerings in ways that are enticing to get students to want to enroll.

"We want them to show better their return on investment," said Taylor. "We want them to be a little bit more transparent about the cost and what the costs entail."

Data from the National Student Clearinghouse Research Center shows that in the 2022-2023 academic year, the number of undergraduate degree earners nationwide fell for the second year in a row.

Support for this reporting was provided by Lumina Foundation.




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