With the flurry of higher ed staff processing and packaging aid offers, reviewing financial aid appeals and counseling students on the changes, NASFAA is asking the Department of Education to work closely with financial aid offices to protect underresourced students from the lightning-quick turnaround.
"We're about to fall off that cliff," said Higher Education Co-Chairman Gregg Haddad referring to the reliance the state system placed on one-time federal aid investments, such as the American Rescue Plan.
Last year brought in the largest freshman class Bethune-Cooman had seen in more than 10 years and a 34% net tuition increase. With federal aid drying up in June, however, they intend to capitalize on an unexpected spark.
“Schools that engage in fraud or misconduct are on notice that we may be listening, and they should clean up accordingly,” said Kristen Donoghue, FSA’s chief enforcement officer in the Department's announcement.
To curb the deepening student loan crisis, the Department of Education aims to impede the abuse of federal funding at for-profit colleges by forcing school leaders to assume personal liability for unpaid institutional debt.