Covid19 considerations for Higher Ed

After several days of web conferences with higher education, I believe it necessary to highlight some of the growing areas of concern resulting from Covid-19:

• Many colleges have been substantially impacted financially by Covid-19. This may be especially true for smaller regional public institutions and lesser known private colleges. If your child is planning on attending one of these types of schools, you need to ask how the 2020-2021 operating budget could be impacted, and if your child’s scholarship might result in some type of adjustment from year to year (however, if you are in the process of appealing for financial aid, do not ask these types of questions until you have the final financial aid decision).

• All colleges have lost substantial revenues this current semester, and will most likely continue to do so during the summer (they are trying to determine if programing, available courses and faculty/staff, and resources need to be reduced for school year 2020-2021).

• For students enrolling in comprehensive learning support programs, it is essential to ascertain if the program will continue at the same level of programming and professionalism for 2020-2021.

• Fall Semester classes may be impacted too (we just do not know) – you may want to ask if deposits are refundable if the college is not able to provide in-person, on-campus instruction and residential life (and if tuition and fees might be modified if students end up with distance learning).

• Finally, many families have been impacted financially, and many have lost employment. It is NOT too late to appeal a financial aid decision or file for financial aid – contact the college’s financial aid office for guidance (I’m happy to talk you through this process before you connect with the college).

Every week seems to offer us some new aspect from the fallout of Covid-19. These perspectives may look different by the end of April, and again by the end of June, and even August. But I do want you to be aware of the possible implications for school year 2020-2021 sooner rather than later.

Your children are resilient like their parents. With every change, comes an opportunity. I am anticipating that colleges will rise to this moment, and be more innovative and adjust accordingly. I am confident that our youth will emerge as even stronger, more creative, better problem solvers.

Today’s AP Article highlights these growing concerns - Financial Hits pile up for Colleges as some fight to survive

Public Loan Forgiveness

To clarify for this opportunity, a borrower must have done the following as outlined by Dept of Education:

-  Submitted the Public Service Loan Forgiveness: Application for Forgiveness and had that application denied because some or all of the payments were not made under a qualifying repayment plan for PSLF

-- Worked at least 10 years of full-time employment with a qualifying employer, certified by the employer, and approved by the Department

-- Made 120 qualifying monthly payments under the new requirements for the TEPSLF opportunity while working full-time for a qualifying employer or employers

Borrowers who believe they may qualify for the TEPSLF opportunity should email a request for reconsideration to TEPSLF@MyFedLoan.org.

From the New York Times:

"So now comes the fix-it fund. It could allow some of the people who were in a list of formerly ineligible repayment plans into the loan forgiveness program if they apply for the exception before the $350 million runs out (or after Congress allocates more money, if that ever happens). Only people who paid more than they would have under an income-driven repayment plan on their most recent monthly loan payment and the one 12 months ago (and thus were consistently overpaying, in effect) will be eligible.

If this sounds like it applies to you, you need to do the following things in the following order. First, you need to make 120 on-time payments in the right job, with the right loan; you can't go looking for relief yet if you've made only 90 payments, even if you already know that 30 of them, five or more years ago, were in the wrong repayment plan. Then, you need to ask FedLoan, your servicer, to begin formal forgiveness proceedings. It will then reject you for being in the wrong repayment plan for part or all of that 120-month period.

Only once that happens can you apply for the money, by sending an email to FedLoan. (The address is on the Department of Education's website.) The department has a template there that you can follow."

Michael Rose, Director for Government Relations, NACAC