John,
On June 17, 2020, the Department of Education introduced a new rule excluding some students and borrowers from receiving the emergency relief funds provided by Congress through the CARES Act.
Here’s some background: as you know, the CARES Act paused payments for most federal student loan borrowers. But it also included more than $6 billion in emergency grant aid for colleges to award to students. Anything that helps prevent current students and new borrowers from going through what long-term borrowers are experiencing now is a huge step in the right direction.
Here’s where Betsy DeVos comes in.
Her new rule instructs institutions to exclude a number of students when distributing their emergency scholarships to students—including veterans relying on the GI Bill, some student borrowers who have defaulted on loans, students with low grades, and more.
And these are students who would benefit from emergency financial aid the most.
While a rule like this from the Trump administration’s secretary of education is not unexpected, it’s a slap in the face. We know all too well that students and student loan borrowers were struggling to make ends meet even before this pandemic’s economic crisis—rules like this only derail the progress we’re making.
Congress NEVER intended for any students to be left out.
In fact, Congress allocated more than $6 billion in funding to help students cover everything from food to housing, child care, health care, technology, and course materials.
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