Earlier this year, the federal government slashed the Department of Education’s workforce. A new survey from the National Association of Student Financial Aid Administrators (NASFAA) reveals telling consequences just a few months into these staffing changes. The respondents — financial aid professionals from 900 universities — reported communication breakdowns, delayed processing times, and overextended staff since the March staffing cuts, which also hit the Office of Federal Student Aid.

“ … Their most urgent worry is not internal workload — it is the risk that federal instability will undermine students’ access to aid and erode trust in the system itself,” NASFAA wrote.

This puts at risk the most vulnerable students who rely on access to federal financial aid to afford college. Without clear information or access to answers about things like the FAFSA, more students forego college or take on burdensome loans. 

For some of those borrowers, we’re seeing a different set of consequences. This month the government resumed collections on federal loans, and the results suggest confusion and shock from borrowers whose payments are more than 270 days past due. Credit scores dropped 100 points for 2.2 million delinquent student loan borrowers, the Washington Post reported this week. 

Our local network has reported on this in numerous ways:

• In Tampa, Ian Hodgson laid out answers to commonly asked questions about loan collections restarting.

• In Fort Worth, Shomial Ahmad spoke to a local banking executive for Bank of America who offered advice for borrowers about how to learn if their loans are in default and avoid collections.

• In Chicago, Lisa Kurian Philip is talking with locals who have student loan debt about how they’re navigating the uncertainty. 

Our network is growing

Please welcome Danya Pérez, our newest reporter in the local network! Danya started this week as the inaugural higher education reporter at the San Antonio Report.

We’re a nonprofit newsroom that relies on your support. If this type of reporting matters to you, donate to Open Campus today.

Elsewhere on Open Campus

In Texas: The Legislature is in full swing. Jessica Priest is following bills that would give political appointees more control over universities’ courses and hiring; limit protests at public universities; and allow schools to pay their student-athletes.

In Tampa: It’s been a busy month for the revolving door of college leadership — at the University of Florida, this week Santa Ono was confirmed as the next president. At Pasco-Hernando State College, Florida Department of Juvenile Justice Secretary Eric Hall was named interim president. As Ian points out, Hall is the latest in a series of presidential picks in the state with ties to Tallahassee.

In Indianapolis: IU Indianapolis recently removed two prominent signs that read “Black Lives Matter” and “Discrimination has no place here” from its downtown campus. Claire Rafford reports this is a likely effort to comply with federal and state guidance surrounding diversity, equity and inclusion.

Keep in touch

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