The new administration and lawmakers in D.C. are wrestling with solutions to relieve the vast amount of student debt and the rising cost of higher education. Any solutions or changes will hit home for many Lipscomb students, who take out more than 11 million in student loans each school year.
Lipscomb’s financial aid office is awaiting changes from the federal level and advocating on behalf of students. Director of Financial Aid Tiffany Summers and Director of the Office of Neighborhood, Community and Government Relations Amanda Martin are each working within college associations to obtain information surrounding upcoming potential policy changes.
“I would say there’s a lot that we’re watching right now, certainly higher education was an important part of the administration’s (election) platform,” says Martin. “There can definitely be a difference between what is on the platform and what actually gets done when somebody gets in office.”
One of the hot-button issues surrounding President Joe Biden’s higher education plan is student debt forgiveness. Opponents argue loan forgiveness would disproportionately benefit high-income individuals, while supporters contend Biden could do more.
“There’s definitely a lot of debate nationally around student loan debt, and so one of the pillars of Biden’s higher education plan was that he wanted to forgive $10,000 worth of student loan debt for everyone,” said Summers.
“It’s certainly unclear what any actual student loan action is going to look like. There are some that argue Biden should by executive order forgive $50,000 in student debt for everyone or forgive all student loan debt, which would cost somewhere around $1.5 trillion.”
Early this February, Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) held a press conference calling on Biden to forgive $50,000 per borrower via executive order, but Biden currently maintains his position on $10,000 only with congressional approval.
Yet student loan limits aren’t the only tool the administration is wielding in attempts to increase access to higher education.
“There are definitely some things that we are excited about from the new administration, one of which is doubling the Pell Grant,” said Martin.
“Over the years, the buying power of the Pell grant for the overall cost of schools has really gone down as inflation happens, but we haven’t really increased the Pell Grant to keep up.”
During the 2018-2019 school year, 1,701 Lipscomb students were determined to have financial needs, yet only 736 received the Pell Grant.
“Being able to put more money in the Pell Grant would really allow students to be able to have a choice about which institution is the best fit for them.”
Summers and Martin said they see institutional “fit” as a big factor in Lipscomb maintaining a competitive edge as Biden seeks to significantly decrease the cost of public universities.
“The biggest lesson that we’re adapting to is what the needs of the students are,” said Summers. “We want to continue to provide an educational experience that prepares students to enter the workforce and provides the kind of experiences that students want to have while they’re in college.
“We just want to make sure that students have the option to choose whatever is the best fit for them.”
For students struggling with student debt or college affordability, Summers recommends taking advantage of legislation already in place.
Weeks into his term, Biden has signed several executive orders aimed at providing education-based COVID relief. This includes an extension of the Trump administration’s pause on federal student loan collection, which Summers believes is the perfect opportunity for students to get ahead of debt.
“My advice is if at all possible, to make payments on that principal amount… it’s just going to save you down the road,” said Summers.