- Prison Education Program application goes live
- Next steps on repayment and student debt
- Advocates in Action returns this fall
- Funding opportunities
Prison Education Program application goes live
The U.S. Education Department (ED) is now accepting applications to participate in the new Prison Education Program (PEP), which provides Pell grants to incarcerated students participating in approved higher education programs offered in prison.
Community colleges have been closely involved in the prison education space for years, with many colleges offering programs in prisons, participating in the Second Chance Pell experiment and leading the charge to restore Pell Grant eligibility for incarcerated students. Two-year colleges had a key seat at the table during the rulemaking process for the program’s implementation, and many changes requested by the American Association of Community Colleges (AACC) were incorporated into the final rule.
The new application process for colleges is multi-step. A college must gain approval from the corrections agency overseeing the prison and the college’s accreditor. There are several requirements that a college must meet to ensure program quality for the unique student population. Please contact AACC if you would like more information on the application process or on existing community college prison education programs.
Next steps on repayment and student debt
Following the Supreme Court decision on student debt cancellation, the Biden administration has announced that it intends to seek an alternative route to implement the cancellation plan: the Higher Education Act (HEA).
Unlike the HEROES Act, the law that ED initially cited during the creation of the plan, HEA has additional bureaucratic requirements. The department will have to go through a negotiated rulemaking process for the cancellation plan, including public hearings, a rulemaking panel and public comments.
While the administration continues to search for a path forward for cancellation, ED is obligated to end the repayment pause in August, per the terms of the debt ceiling agreement. This makes for a complicated environment for borrowers, especially those entering repayment for the first time, or whose servicers changed during the repayment pause, or who thought that all or much of their remaining balance would be eliminated.
Recognizing these challenges, ED announced that, while repayment will resume this fall, it will create an “on-ramp” period. During the 12-month period, borrowers’ credit scores won’t be impacted by missed payments and borrowers will not be put into default. Unlike during the payment pause, interest will continue to accrue for borrowers during the on-ramp period.
ED is also implementing its new borrower-friendly income-driven repayment plan, called Saving on a Valuable Education (SAVE). First proposed alongside the announcement of the student debt cancellation plan, SAVE:
- Lowers the monthly payment amounts for undergraduate borrowers from 10% to 5% of discretionary income.
- Raises the income-protection allowance so that no borrower earning under 225% of the federal poverty level will owe a monthly payment (up from 150%).
- For borrowers with original balances of $12,000 or less, lowers the timeline to forgiveness from 20 years of payments to 10 years.
- Ensures that borrowers’ loan balances will not grow due to unpaid monthly interest.
The plan will replace the current Revised Pay-As-You-Earn (REPAYE) plan. Current borrowers enrolled in REPAYE will be automatically enrolled in the SAVE plan, while other borrowers can apply for the new IDR plan now. ED will phase in these changes, with the plan going fully into effect on July 1, 2024.
Advocates in Action returns this fall
AACC’s annual Advocates in Action (AiA) event returns this fall in Washington, D.C., on September 18 and 19. At AiA, participants hear from and interact with higher education leaders – including policymakers, top legislative staff, higher education media, influential researchers and officials from the Biden administration – in an intimate seminar setting. The event provides a terrific opportunity to learn more about the federal advocacy environment, strengthen your knowledge of key issues impacting community colleges, grow your advocacy network, and hone your skills as an advocate for your college and the sector. Community college presidents, trustees, government relations directors and other administrators are encouraged to attend.
Register today for the event is now open. Attendees can make hotel accommodations at the Ven at Embassy Row Hotel.
Funding opportunities
Applications are open for key community college funding opportunities:
- Child Care Access Means Parents in Schools (CCAMPIS) Grant Program – Due July 31
- Advanced Technological Education (ATE) – Due October 5
For more detailed information on these issues, visit the Community College Advocacy Updates page on our website. Send questions, feedback and more to: kgimborys@aacc.nche.edu.
