Higher education is a significant concern for many Americans, especially as tuition costs continue to escalate. The upcoming presidential election could have profound implications for students, educators, policymakers, and parents. Higher education is a hot-button issue for both candidates, encompassing topics such as college affordability, the Free Application for Federal Student Aid (FAFSA®), student loan repayment, and various other policy differences.
Why Higher Education Matters
Education is often hailed as the great equalizer, offering pathways to social mobility, personal development, and economic stability. However, the escalating costs of higher education and overwhelming student loan debt have made it increasingly challenging for many to access these opportunities and manage repayment after completing their programs.
If you are enrolled in or considering higher education, you may be particularly interested in higher education policy. Perhaps you are already grappling with student loan debt. Successfully completing a higher education program, whether a certificate or degree, typically leads to higher wages, fostering a financially stable future for you and your family. On a broader scale, a more educated workforce can drive innovation and spur economic growth.
The federal student aid programs were established by the Higher Education Act of 1965, as amended. Additionally, various congressional bills, including the annual federal budget, contribute to the funding and regulation of these programs. The federal government plays a pivotal role in higher education through legislation, funding, regulation, and policymaking. Federal student aid, such as grants, loans, and work-study opportunities, is crucial for making higher education accessible to millions.
Presidential Higher Ed Hot Topics
When evaluating candidates' policies, it's crucial to focus on key areas such as funding for public colleges, student loan forgiveness, and FAFSA system reforms. These issues significantly impact students and their families. Each candidate presents a unique approach to managing higher education finance. If you're planning to attend college or are dealing with student loan debt, understanding the policies each administration proposes is essential.
Biden's Approach to Higher Education
President Joe Biden has prioritized higher education in his administration, focusing on making college more affordable and accessible while tackling the student loan crisis. Despite his efforts, his initiatives have faced significant criticism. His proposal for mass student loan forgiveness offered hope to many borrowers, but opponents argue it unfairly shifts the debt burden to taxpayers and disregards those who have already paid off their loans, avoided borrowing, or did not attend college. Let's explore the approaches the Biden administration has adopted and some plans he proposes to implement to manage and improve higher education.
Biden's Student Loan Plan
One of the most debated elements of Biden's higher education policy is his plan for student loan forgiveness. His initial attempt at widespread student loan forgiveness was overturned by the U.S. Supreme Court. In response, he introduced the new income-driven repayment strategy, the SAVE Plan, designed to help borrowers reduce their monthly payments, offer an interest subsidy to prevent the balance from increasing over time, and provide the possibility of forgiveness after ten years of payments for those who borrowed $12,000 or less in federal student loans.
Additionally, Biden has been working on an alternative Plan B for student loan forgiveness, which is currently undergoing the negotiated rulemaking process. Should the Biden administration secure another term, efforts to implement mass student loan forgiveness will likely persist. However, as past efforts have shown, each initiative is expected to face resistance and legal challenges.
Resolving the 2024-2025 FAFSA Fiasco
The Free Application for Federal Student Aid (FAFSA) is a critical tool for students seeking financial assistance for college. However, the roll-out of the 2024-2025 FAFSA has been fraught with issues. The Biden administration has prioritized fixing these problems to ensure that students receive the aid they need. Improvements to the FAFSA process could make it easier for students to apply for and receive financial aid. The U.S Department of Education has already promised an on-time delivery of the 2025-2025 FAFSA of October 1, 2024.
Lowering the Cost of College and Funding for Public Colleges
Biden has proposed increasing funding for public colleges and universities to lower tuition costs and enhance the quality of education. By investing in public higher education, he aims to make college more accessible for low- and middle-income families.
Moreover, Biden plans to boost the Federal Pell Grant, a vital financial aid resource for low-income undergraduate students. With a new methodology for awarding the grant in the 2024-2025 academic year, his administration aims to provide these funds to students pursuing their first four-year undergraduate degree.
Crack Down on “Scam” Colleges
Over the years, students have grappled with student loan debt incurred from attending predatory colleges. Since the Obama administration, thousands of borrowers have qualified for loan discharges under the Borrower Defense to Repayment program. While many of these colleges have ceased operations, the Biden administration remains committed to identifying institutions that mislead and exploit students.
Trump's Vision for Higher Education
Former President Donald Trump proposes a distinct approach to higher education. His policies aim to reduce federal involvement and boost private sector participation. Trump has expressed a desire to "revolutionize" higher education and has outlined his priorities in his Agenda47 campaign. Here are some key highlights of his proposals for higher education.
Eliminating the U.S. Department of Education
One of the most contentious elements of Trump's education policy is his proposal to dismantle the U.S. Department of Education. He advocates for education to be managed at the state and local levels rather than federally. Additionally, Trump has pledged to support homeschooling parents by proposing an expansion of 529 plans, allowing up to $10,000 per year per child to cover homeschooling costs.
Regarding higher education, his plans include significant reforms to federal student aid, student loans, and repayment schemes. The administration of these federal student aid programs is overseen by the U.S. Department of Education’s Office of Federal Student Aid.
Reforming Student Loans
Trump has proposed major reforms to the federal student loan program. He suggests eliminating the Direct Loan program and reverting to a system similar to the Federal Family Education Loan (FFEL) program. This shift would increase the role of private lenders.
College Endowment Tax to Fund American Academy
Trump's plan includes establishing a federally funded college, the American Academy. To finance this initiative without increasing federal debt, he proposes taxing, fining, and suing "excessively large private university endowments." The new institution will be apolitical, with policies against wokeness and jihadism.
Student Loan Repayment
Trump's plan includes major reforms to income-driven repayment plans. He proposes eliminating most plans and offering one single option. In addition, student loan forgiveness opportunities under the Biden administration will be eliminated. The future of the public service loan forgiveness (PSLF) program may also be uncertain if Trump is re-elected.
What to Expect in the Next Four Years
The future of higher education in the U.S. hinges significantly on the outcome of the presidential election. Both candidates present ambitious plans, yet their approaches diverge fundamentally.
Potential Changes Under Biden
If re-elected, Biden is likely to continue his efforts to make college more affordable and accessible. We can expect more initiatives focused on student loan forgiveness, increased funding for public colleges, and improvements to the FAFSA system. Biden's policies aim to reduce the financial burden on students and their families.
While the Biden administration has been crafting new regulations, they primarily operate within existing legal frameworks. However, regulations based on ambiguous laws may face challenges, especially after the recent U.S. Supreme Court decision overturned the Chevron Doctrine. Additionally, his student loan reform plans have encountered several successful legal challenges.
Potential Changes Under Trump
A Trump presidency would likely lead to reduced federal involvement in education. Notable changes to the student loan system are anticipated, with a shift towards greater private sector participation. Trump's policies focus on decreasing government spending on education and promoting efficiency through market-driven solutions.
However, if Trump is re-elected, his proposals won't be enacted immediately. They must follow necessary procedures, including potential Congressional involvement, to be implemented. Proposals do not always translate into reality.
The Importance of Voting
Understanding where candidates stand on these pivotal issues is crucial. Your voice at the polls is powerful; it can shape the future of education in America.
The 2024 presidential election holds significant stakes for higher education in the U.S. From student loan forgiveness to funding public colleges, candidates' policies will impact millions of Americans.
If you're eligible, exercise your right to vote. It's vital to prioritize what matters most to you. By staying informed and engaged, you can help steer the future of higher education in America.