Federal Student Aid Site Struggles to Provide Answers

April 23, 2024 TruthUSA

Two Republican lawmakers are investigating a glitch-prone federal aid site to determine if it is linked to funds being redirected to President Joe Biden’s student loan forgiveness initiatives.

Sen. Joni Ernst, R-Iowa, and Rep. Julia Letlow, R-La., sent a letter on Tuesday to the Office of the Inspector General for the Education Department seeking clarification on the flawed rollout of the Free Application for Federal Student Aid (FAFSA).

“It remains unclear whether those funds were used to improve the FAFSA form or for other projects, such as the $153 billion in student loan forgiveness that has been approved so far,” the letter stated.

In August 2022, Biden proposed a significant program to cancel billions in student loan debt, but this was ruled unconstitutional by the Supreme Court the following year. Despite this setback, the Biden administration recently announced a new plan to “provide debt relief to over 30 million Americans,” claiming that it would benefit not only borrowers but also the entire economy.

In their letter, Ernst and Letlow argue that during the 2023 budget negotiations, Republicans proposed a 20% increase for FAFSA on the condition that the funds would not be used for student debt relief, but Democrats rejected this offer.

“Millions of Americans who have responsibly paid their loans or chosen not to pursue higher education will now be responsible for repaying the loans of others,” Ernst and Letlow pointed out.

FAFSA, the student loan application program used by millions of students and thousands of universities, has faced numerous issues since its updated interface was introduced in October. The glitches have left millions of students in a state of uncertainty about their financial obligations and, consequently, the colleges they can afford.

In February, Ernst expressed concerns about FAFSA in a letter addressed to Secretary of Education Miguel Cardona, highlighting how the allocation of assets could negatively impact those in the farming community.