Members of Congress have reached an overall funding deal to prevent a partial government shutdown but remain divided on student loan relief proposals.
01/08/2024 3:15 P.M.
2 minute read
Government negotiations progressed this week with approval of a “topline spending deal” that would meet the deadline for funding that expires Jan. 19 and avoid a partial government shutdown, The Hill reports. Additional funding expires Feb. 2.
“The topline constitutes $1.590 trillion for [fiscal 2024]—the statutory levels of the Fiscal Responsibility Act. That includes $886 billion for defense and $704 billion for nondefense,” House Speaker Mike Johnson said in a letter to members of Congress, according to the article.
The funding negotiations include veterans’ benefits and health care aid, among other areas—such as programs for student loan borrowers.
A bill from the House Committee on Education & the Workforce includes changes to student loan program funding that would end Feb. 2.
According to an article from Business Insider, the GOP-led committee proposes to cut funding for Federal Student Aid by $265 million below its current amount and by $884 million compared to the budget request to Congress from the Biden administration.
The bill also includes proposals on changing funding for the Department of Education’s (DOE) SAVE income-driven repayment plan, according to the article.
However, the GOP leaders on the committee say the proposals are designed to offset student loan debt.
“This bill includes strong measures offered by Republicans that will rein in America’s debt, and the Committee is confident in its trajectory,” a House education committee spokesperson told Business Insider, according to the article.
Last summer, House Education Committee Chair Virginia Foxx, R-N.C., introduced the Federal Assistance to Initiate Repayment (FAIR) Act to establish one income-driven repayment plan, prevent mounting interest for borrowers and require the DOE to provide more guidance to student loan servicers, according to a summary of the bill (PDF), ACA international previously reported.
Meanwhile in other student loan news, the Consumer Financial Protection Bureau and Department of Education have released updates on student loan borrower services after the payment pause for federal loans ended in October 2023.
The CFPB released an issue spotlight on student loan repayment while the DOE has withheld payments to its contracted student loan servicers until they remedy issues with their contractual obligations, according to a news release.
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