The first 100 days of a new president’s administration are considered an important milestone. Often, the administration is judged on the progress it has made on campaign promises and urgent priorities. Given that this week marks 100 days into the Biden-Harris
administration, below is a detailed recap on the administration’s early actions on education – specifically, on issues most relevant to NCAN members.
During the first few months of 2021, NCAN expressed its priorities to the administration, including increased Pell Grant funding, support for Deferred
Action for Childhood Arrivals (DACA) and DREAMer students, and coordinated outreach to students on issues such as eligibility for food assistance and financial aid adjustments possible through professional judgment. NCAN is pleased that the administration,
as reflected by recent actions, is committed to addressing these urgent priorities.
Among the administration’s significant actions, covered below, was the passing of President Biden’s $1.9 trillion coronavirus response package – The American Rescue Plan Act (ARPA) – which provided substantial funding for emergency student aid, K-12 education,
and institutions of higher education.
Supporting All Students
The administration has identified immigration reform as a priority. In his first days in office, the president issued a memorandum expressing a commitment to preserving and fortifying the DACA program.
The president called on Congress to pass his comprehensive immigration reform package, the U.S. Citizenship Act.
It includes a pathway to citizenship for undocumented individuals present in the country as of Jan. 1, 2021. Individuals would receive temporary status for five years, and then, after meeting certain requirements, would be able to apply for a
green card. After three years with a green card, participants would be eligible to apply for citizenship. Current DACA recipients would be able to immediately apply for a green card.
The president’s first discretionary funding request for fiscal year 2022 included a request to expand Pell Grant eligibility to DACA recipients of qualifying incomes.
K-12 Funding
The American Rescue Plan Act (ARPA) provided $122.7 billion for the Elementary and Secondary School Emergency Relief (ESSER) Fund. The ESSER Fund is distributed in grants to states, allocated based on a state’s share of Title I funds received in the
most recent fiscal year. States provide subgrants to local educational agencies (LEA), based again on each LEA’s share of Title I funds. $800 million of this amount is reserved for the U.S. Department of Education (ED) to identify and assist homeless
children and youth to attend school and receive wraparound services.
Higher Ed Funding/Emergency Student Aid
ARPA provided $39.5 billion to institutions of higher education (IHEs) through the Higher Education Emergency Relief (HEER) Fund. Public and private nonprofit IHEs receiving funds must use at least 50% to provide emergency financial aid grants to
students. For-profit IHEs must use 100% of funds to provide emergency financial aid grants to students.
On March 19, ED released guidance to support the implementation
of ARPA and discussed benefits, outreach, and flexibilities to assist students, federal student aid applicants, and IHEs. The guidance clarifies that IHEs can make emergency aid grants to dual enrollment, continuing education, non-degree-seeking,
or non-credit students, and potentially to students who are considered refugees or persons granted asylum.
Pell Grant Funding
The president’s first discretionary funding request for fiscal year 2022 included a $400 increase to the maximum Pell Grant, in a “first step in a more comprehensive proposal”
toward the goal of doubling the maximum award. The request noted that investment is needed to “help shrink racial gaps in higher education.”
Direct Payments
ARPA also provided direct payments of up to $1,400 for individuals, $2,800 for couples, and an additional $1,400 for each dependent. Unlike previous COVID-19 relief bills, taxpayers’ dependents of any age, including college students, were eligible
for payments.
Student Loan Borrower Relief
ARPA eliminated taxation on the portions of student loans that are discharged by the federal government. Loan forgiveness is typically treated as income and therefore taxable. The provision covers loans for postsecondary educational expenses, including
federal student loans and certain private education loans; and is applicable between the timeframe of Dec. 31, 2020, through Jan. 1, 2027.
On March 30, the U.S. Department of Education (ED) announced an expansion of the pause on federal student loan interest, and collections on defaulted loans, for the Federal Family Education Loan (FFEL) Program. ED reported that this will help more than 1 million borrowers during the COVID-19 emergency.
On Jan. 21, at the request of President Biden, the U.S. Department of Education further extended the current relief of payment, interest-accrual, and defaulted-loan collections for federal student loan borrowers through Sept. 30, 2021.
Professional Judgment
ARPA required institutions receiving aid from the HEER Fund to dedicate funds to conduct direct outreach to financial aid applicants about professional judgment – the opportunity to receive a financial aid adjustment due to factors such as recent
unemployment.
On Jan. 29, ED released a letter reminding institutional financial aid offices of their ability to engage in professional judgment and make it easier for those who are unemployed or
have received unemployment assistance to access federal student aid.
Supplemental Nutrition Assistance Program (SNAP)
On March 19, ED informed institutions that they can conduct direct outreach to students who may meet the temporarily expanded eligibility
criteria for SNAP that waived work requirements for students with a zero EFC. The Office of Federal Student Aid will also reach out to students and offer information for SNAP.
ARPA changed the “90/10” rule to mandate that for-profit institutions factor non-Department of Education federal funds, such as educational benefits provided by the U.S. Department of Veteran Affairs, toward their 90% maximum revenue from federal
sources. This is subject to negotiated rulemaking, a federal process for regulations (not to begin before Oct. 1, 2021). The 90/10 rule should be applied to IHE fiscal years beginning on or after Jan. 1, 2023.
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