WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine, a member of the Senate Health, Education, Labor and Pensions Committee, (both D-VA) released the following statement regarding the Trump Administration’s plans to pull federal funding from the Alexandria, Arlington, Fairfax, Loudoun, and Prince William County Public School Districts:

“The Trump Administration destroyed the federal Department of Education and forced out an exceptional president at the University of Virginia. Now it wants to punish high-performing, award-winning schools districts in Northern Virginia. You can’t have a strong economy without strong schools, so add this to the list of President Trump’s disastrous economic policies, alongside his sweeping tariffs and rolling back of investment incentives that were creating tens of thousands of jobs in Virginia.”

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WASHINGTON —Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement after Jim Ryan resigned as President of University of Virginia following pressure from the Department of Justice (DOJ):

“Virginia’s economy and prosperity depend on the strength and integrity of our higher education system. It is outrageous that officials in the Trump Department of Justice demanded the Commonwealth’s globally recognized university remove President Ryan—a strong leader who has served UVA honorably and moved the university forward—over ridiculous ‘culture war’ traps. Decisions about UVA’s leadership belong solely to its Board of Visitors, in keeping with Virginia’s well-established and respected system of higher education governance. This is a mistake that hurts Virginia’s future.”

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) issued the statement below in response to a new form released by the U.S. Department of Education, which has begun to accept applications from joint consolidation loan borrowers seeking to separate their loans.

This announcement and new application follows longtime efforts by Sen. Warner to provide relief for individuals who previously consolidated their federal student loan debt. Borrowers who consolidated their student debt with a spouse, did so under a program that was created by Congress and subsequently eliminated without providing a way for spouses to sever existing loans – even in the event of domestic violence, economic abuse, or an unresponsive partner. In 2022, Sen. Warner secured the passage of the Joint Consolidation Loan Separation Act of 2021 in order to help borrowers who remain liable for their abusive or uncommunicative spouse’s portion of their consolidated debts. In July of 2024, Sen. Warner hailed new Ed implementation guidance that today culminates in the launch of this new application.

“Two years after getting the Joint Consolidation Loan Separation Act into law, I’m proud to say that borrowers can now apply to separate their joint consolidation loans. While this took longer than I had hoped for, I have no doubt that it brings a sigh of relief to so many borrowers who remain trapped in financial agreements with unresponsive or abusive ex-spouses, and unable to access important loan forgiveness programs. I’m proud to have written the law that’s bringing this process to life and I’m glad to see the Department of Education take such a significant step towards freeing borrowers from these burdensome loans,” said Sen. Warner.

Through the new Department of Education form, borrowers are able to submit a:

• Joint Application: Both co-borrowers submit individual App/Notes to the Department, which will separate the JCL and create a new, individual Direct Consolidation Loan for each individual; or,
• Separate Application: An individual JCL applicant submits an App/Note to the Department without regard to whether or when the co-borrower applies, if the applicant has experienced an act of domestic violence or economic abuse from the other co-borrower, or if they are unable to reasonably reach or access the loan information of the other co-borrower.

Once the loans are separated, the applicants’ loan obligation will be consolidated into a Direct Consolidation Loan if both borrowers completed the joint application process. For those who submit a separate application, the loan obligation will follow the same process as the joint application process, but if the remaining co-borrower does not complete an application, their loan obligation will remain a JCL with one borrower.

Sen. Warner’s Joint Consolidation Loan Separation Act, originally introduced in 2017, was inspired by Sara, a constituent from McLean, Virginia who contacted Sen. Warner to communicate her struggles with a joint consolidation loan. Sara was raising two children on a public school teacher’s salary in Northern Virginia and trying to keep up with payments on her student loans. Unfortunately, her ex-spouse, whom she had divorced and moved thousands of miles away from to start fresh, refused to pay his share of their joint loan. Because joint consolidation loans create joint and several liability for borrowers, Sara faced the threat of having her wages as a public school teacher garnished if she did not pay both her and her ex-husband’s portions of their debt. Sen. Warner did not think this was fair and sought to create a solution, so that constituents like Sara could control their own financial futures. You can hear Sen. Warner tell Sara’s story here.

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WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and John Thune (R-SD), alongside U.S. Reps. Scott Peters (CA-50) and Nicole Malliotakis (NY-11) introduced the Employer Participation in Repayment Act – bipartisan legislation to help Americans tackle their student loan debt by making permanent a provision that allows employers to contribute up to $5,250 tax-free to their employees’ student loans. 

In 2020, Sens. Warner and Thune along with Rep. Peters negotiated the inclusion of a provision in the CARES Act that allowed these contributions temporarily. Later that year, as part of the government spending package, they secured an extension allowing this benefit through January 1, 2026. By making this tax benefit permanent, today’s legislation would provide employees with much-needed relief and employers with a unique and permanent tool to attract and retain talented employees.

“Too many young Americans are struggling under the weight of student debt, preventing them from establishing savings, buying homes, and building wealth,” said Sen. Warner. “My Employer Participation in Repayment Act took an important step to help folks pay down their debt while also giving employers a powerful tool to recruit and retain the best talent, but it’s set to expire soon. I’m proud to be pushing to make this benefit permanent so we can grow our economy and support the middle class by supporting recent graduates and employers alike.”  

“Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face,” said Sen. Thune. “The Warner-Thune bill would permanently equip employers with this unique tool to help attract and retain talented employees while protecting American taxpayers from costly burdens. This is a win-win for graduates and their employers, and I hope it will once again garner strong, bipartisan support.”

“I relied on student loans to get through college when the cost of higher education was much lower than it is today. Now, the collective debt among Americans is $1.7 trillion, which limits our economic growth and young people’s economic prospects,” said Rep. Peters. “Over the last four years, this program has been a huge success — helping employers pay off thousands of employees’ loans and compete for the best talent. This public-private collaboration has proven itself as a cost-effective solution to the student debt crisis and it is imperative that we make it permanent.”  

“Over the past 20 years, the cost to attend college has risen 45 percent, forcing students to choose between pursuing higher education and taking on tens of thousands of dollars in burdensome student loan debt,” Rep. Malliotakis said. “Our bipartisan legislation will allow millions of students and recent graduates to continue receiving reimbursement through their employer up to $5,250 per year tax-free, which can be used to repay student loans, pay tuition, and purchase required books, supplies, and equipment for academic courses. This tax incentive will continue to strengthen our workforce, increase our nation’s competitiveness, and provide much-needed economic relief to millions of Americans who are struggling to make ends meet during this time of record-high inflation.” 

Reports estimate that Americans owe a combined $1.74 trillion dollars in student loan debt. This debt is a significant financial burden that not only influences the way the American workforce saves and spends, but also has a stifling effect on the economy. This legislation would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt.

The legislation has support from numerous educational organizations.

“The American Council on Education strongly supports the ‘Employer Participation in Repayment Act,’ which would make permanent the CARES Act expansion of Sec. 127 to cover student loan repayment assistance. Many Americans are paying off student loans while balancing the needs of their families and achieving new skills to advance in their careers. This legislation would provide employers the opportunity to support their employees in pursuing education and/or to manage their student loan debt, which represents a win-win for employers and employees. This expansion of Sec. 127 potentially also could generate substantial private sector funds for student loan repayment through a new public-private partnership to help ease the burden of future and current student loan debt on students and recent graduates. Thank you for your leadership on this important issue,”said the American Council on Education (ACE).

“AICCU is proud to endorse the Employer Participation in Repayment Act, introduced by Congressmembers Nicole Malliotakis and Scott Peters. The independent higher education sector in California enrolls 54% of California graduate students, making the sector the leader in educating the state’s advanced workforce. This bill would make permanent the expansion of Section 127 and will encourage employees to complete their degrees or aspire to upskill and attain a certificate or advanced degree and reinvest them back in with their employer. This is a win-win-win situation for all—the employer, staff, and the postsecondary institution. Thank you, Congressmembers Peters and Malliotakis, for your joint leadership on this critical issue,” said Kristen Soares, President of AICCU.

“Employers and workers alike have benefited from the COVID-era laws allowing Section 127 benefits to be provided to employees for the purpose of repaying student loans. Unfortunately, when the bills were signed into law, Congress included an expiration date for the end of 2025, meaning employees could soon be stripped of a benefit that has eased the financial burden of repaying costly loans during a time of high inflation, and employers could lose a benefit they have offered to attract and retain employees. CUPA-HR therefore fully supports this bill to ensure modern Section 127 benefits are made permanent,” said Andy Brantley, President and Chief Executive Officer at the College and University Professional Association for Human Resources (CUPA-HR).

“The Consortium of Hospital-Affiliated Colleges and Universities (CHACU) endorses this important legislation to make the student loan repayment expansion permanent.  It provides confidence to students entering critically in-demand healthcare careers such nursing, as well as the hospitals seeking to attract and retain them.  Thank you for this legislation which will strongly support nursing and allied health education,” said Nate Brandstater, President of Kettering College and CHACU Member.

“Fidelity Investments commends the bipartisan introduction of the Employer Participation in Repayment Act. As a market leader for student debt workplace benefits since 2016, Fidelity applauds the proposal to create a permanent path for employers to seamlessly contribute to and ease the student debt burden of their employees. Originally enacted as part of the CARES Act, this bill ensures an impactful public-private solution to the country’s growing student debt crisis that can continue to enhance the financial well-being of hard-working Americans and bolster the recruiting and retention strength of companies seeking to offer this benefit. We look forward to working with Congress to enact this legislation into law,” said Jesse Moore, Senior Vice President, Head of Student Debt at Fidelity Investments.

“The National Association of Independent Colleges and Universities (NAICU) is pleased to support bipartisan legislation that would make permanent the expansion of IRC Sec. 127. This expansion to allow student loan repayment assistance should absolutely be a permanent benefit and not expire next year as currently scheduled.  This assistance helps working students, employers, and ultimately the U.S. economy. Section 127 benefits play a critical role in maintaining U.S. competitiveness and preventing the accumulation of student debt by enabling employers to fund the training, development and education of their employees, without imposing tax burdens on those employees for the education they receive.  Employees use these benefits to pursue their educational and career goals and use amounts provided by their employer to either help pay for the cost of tuition or repay student loans,” said Karin Johns, Director of Tax Policy at the National Association of Independent Colleges and Universities.

“The National Association of REALTORS® (NAR) has long supported efforts to ease the burden of student loan debt. The Employer Participation in Repayment Act is a useful tool in easing the weight of student debt. NAR applauds the leadership from Representatives Peters and Malliotakis and Senators Warner and Thune in making this change permanent. This legislation creates a win-win for both employers in search of attracting and maintaining talented workers and employees who will receive relief on their debt, enabling them to save money for important life decisions like purchasing a home,” said Kevin Sears, President of the National Association of Realtors®.

“We are proud to continue to support this initiative and thank Congressmember Peters for his commitment to San Diego’s small businesses,” said Jerry Sanders, President and CEO of the San Diego Regional Chamber of Commerce. “By expanding the benefits employers can offer employees through student debt repayment, the Employer Participation in Repayment Act of 2024 is helping strengthen efforts to attract and retain workers, especially for small business owners.”

“SHRM is proud to support the Employer Participation in Repayment Act, a bipartisan bill that would permanently allow employers to help employees pay off their student loans. SHRM has long championed policies that allow employers to offer education assistance programs that meet the needs of today’s workforce. This legislation would benefit millions of Americans who are struggling with student loan debt, while simultaneously providing employers with a strategic advantage in attracting and retaining top talent in a competitive job market,” said Emily M. Dickens, Chief of Staff and Head of Government Affairs at SHRM.

“Extending the tax exclusion for employer-provided student loan repayment assistance is crucial for today’s U.S. workforce and is 100% aligned with employer perspectives on these benefits,” says Scott Thompson, CEO of Tuition.io.  “As the cost of higher education continues to skyrocket, this benefit enables companies to foster a more educated and skilled workforce, while helping their employees cover basic living expenses, a challenge for so many people today. Since Tuition.io started administering contributions in 2016, employers on our platform have helped pay down student loan debt for hundreds of thousands of employees in key sectors like healthcare, manufacturing, and technology. We at Tuition.io strongly support making these benefits under Section 127 permanent, as their removal would be a significant setback for both corporations and their employees,” said Scott Thompson, CEO of Tuition.io.

"The enormity of this bipartisan initiative cannot be understated. Extending educational assistance benefits to permanently include tax-free student loan repayments will be transformational both for those holding student debt and for employers. As the workforce continues to place an increasing emphasis on financial stability, tax-free employer contributions will be the center of focus for many employers going forward. Highway Benefits has been proud to be able to help companies of all sizes offer this benefit. We look forward to continuing to work with congress in order to make sure that tax-free student loan repayments are here to stay," said Mick MacLaverty, CEO of Highway Benefits. 

Full text of the legislation can be found here. A summary of the legislation can be found here.

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WASHINGTON – Following significant problems with the rollout of the new Free Application for Federal Student Aid (FAFSA) this year, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) are urging the Department of Education Office of Inspector General (OIG) to issue a quick review of problems with the form’s rollout and provide a course for corrective action. This move by Sens. Warner and Kaine comes as incoming high school seniors across the country prepare to fill out the FAFSA form as part of the college application process that typically begins in the late summer and early fall.

The Government Accountability Office (GAO) is currently investigating a broader and full-scale review of the 2024-2025 FAFSA rollout. While GAO and the IG are working together on this review, it is on a longer timeline and likely will not be complete when the FAFSA reopens this fall. The faster “management alert” review being requested by the Senators would focus on the immediate problems that need to be resolved ahead of relaunching the application.

In highlighting the need for a faster review to address urgent problems ahead of next school year, the Senators pointed to the cost that these problems had on students.

“In particular, issues with the form leading to long periods of uncertainty have had a major ripple effect on students and colleges alike,” the Senators wrote. “Students experienced delayed access to the application, technical glitches impacting timely submission, and processing errors. As a result of these setbacks, higher education institutions received student financial data months later than expected, causing slowdowns in the process of providing prospective students with complete financial aid packages ahead of college enrollment deadlines. Many colleges and universities pushed their enrollment deadlines, leading to fragmentation in the college decision timeline.”

And while significant progress has been made to address these issues, the Senators highlighted that lingering issues are still plaguing many who rely on financial aid to make their college decision.

They continued, “And, while most problems have been fully resolved or provided temporary fixes, we remain concerned about continuing challenges, including that students from a mixed immigration status family and whose contributors do not have a Social Security Number are still unable to successfully submit the FAFSA form. Such FAFSA hurdles particularly impact individuals who need financial aid the most, including low-income, first-generation, and traditionally underserved students. For many of these students, the biggest consideration in committing to a college is deciding how to finance it.”

In their letter the Senators also specifically asked that the OIG, in working with GAO, ensure that the broader FAFSA review includes a full assessment of the following:

• A detailed chronology of the development, implementation, and management of the form;
• Contributing factors to the form delay, technical malfunctions and backend complications, formula miscalculations, data and processing errors, and other issues;
• The role of contractors in the launch of the FAFSA form;
• The Department’s oversight, performance standards, and review of contractors;
• The Department’s communication and information sharing with impacted communities, including students and higher education institutions;
• The impact of funding and other competing priorities on implementation;
• The deadline for implementation, which was pushed from July 1, 2023 to July, 1, 2024;[10]
• Potential challenges that the Department will need to anticipate ahead of the coming academic year and beyond; and
• Recommendations for corrective action.

This letter comes after Sen. Warner met with Virginia students to discuss the problems with this year’s rollout of the new FAFSA form and hear how the botched process impacted their college decision process. Earlier this year, the Senators also pushed the Department of Education to quickly address the problems for current students.

A copy of the letter is available here and below:

Dear Inspector General Bruce:

We write to you regarding the launch of the new Free Application for Federal Student Aid (FAFSA), which was unveiled on December 31, 2023. In 2020, Congress passed the FAFSA Simplification Act1 , intending to streamline and demystify the federal financial aid process, redesign the FAFSA, and increase access to grants, student loans, and work-study opportunities. 

The “Better FAFSA” form impressively simplified the federal financial aid application from over 100 questions to as few as 18, allowing many students to retrieve income data directly from the Internal Revenue Service and apply for aid in less than thirty minutes. According to the Department of Education, the updated student aid determination formula, as part of the FAFSA Simplification Act, is expected to provide an additional 665,000 students from low-income backgrounds with access to federal grants and more than 1.7 million students with the maximum grant amount. This includes 16,626 Virginia students who will have new access to the Pell Grant and an additional 37,916 Virginians who will go from partial Pell Grant funding to full, expanding affordability and paving paths towards higher education.

Despite this progress, we are disappointed to report that we have heard from countless students, parents, educators, high school counselors, financial aid administrators, and higher education institutions sharing their experiences and expressing great worry with the implications of the 2024-2025 FAFSA rollout.

In particular, issues with the form leading to long periods of uncertainty have had a major ripple effect on students and colleges alike. Students experienced delayed access to the application, technical glitches impacting timely submission, and processing errors. As a result of these setbacks, higher education institutions received student financial data months later than expected, causing slowdowns in the process of providing prospective students with complete financial aid packages ahead of college enrollment deadlines. Many colleges and universities pushed their enrollment deadlines, leading to fragmentation in the college decision timeline.

We welcomed the Department’s efforts over the last few months to provide workarounds to some of aforementioned issues and new steps to support schools and students,6 which has resulted in the successful submission of 8.95 million forms.7 However, the FAFSA impediments and other persisting obstacles have, unfortunately, left prospective students with inadequate time to consider financial aid packages prior to college decision day. In some cases, students have had to commit to a school without a complete understanding of their aid or forgo enrolling in school altogether – the exact opposite of what the new form was intended to achieve.

And, while most problems have been fully resolved or provided temporary fixes, we remain concerned about continuing challenges, including that students from a mixed immigration status family and whose contributors do not have a Social Security Number are still unable to successfully submit the FAFSA form. Such FAFSA hurdles particularly impact individuals who need financial aid the most, including low-income, first-generation, and traditionally underserved students. For many of these students, the biggest consideration in committing to a college is deciding how to finance it.

Further, recent data demonstrates that current national and state-level FAFSA completion rates are lower than last year. According to the National College Attainment Network, as of May 17, only 41.5% of the high school class of 2024 completed the FAFSA – a 15.5% drop from the previous class.8 We are greatly concerned that, as a result of FAFSA related issues and the continuation of such issues, more students will consider opting out of pursuing higher education in the coming years.

We recognize that the Department of Education, and in particular, the Office of Federal Student Aid, was under a difficult implementation timeline while managing limited funding and resources for an extensive financial aid portfolio. We also want to highlight that the contractors responsible for overseeing the implementation played a leading role in the deployment of the form and ensuing complications.

As such, we express great concern with the deployment of the 2024-2025 FAFSA form and the potential consequences it will have on students seeking federal financial aid and pursuing higher education in the fall and the academic years after. We also are concerned about the potential for continued disruptions for the 2025-2026 FAFSA. That is why, we respectfully request that the Office of the Inspector General review and assess the development, implementation, and management of the “Better FAFSA” and swiftly provide direction for corrective action to ensure a smooth and uninterrupted application process for the upcoming academic year and beyond.

We are cognizant of the existing investigations currently open by the Government Accountability Office (GAO). We ask the Office of the Investigative General (OIG) work to ensure that both entities are working in coordination and that investigative efforts are not duplicative. We also understand that GAO investigations operate on a long-term scale and that the current issues regarding the 2024-2025 FAFSA are time sensitive because of the expected to roll out on October 1, 2024. Notwithstanding the GAO investigations, we ask that the OIG consider issuing a separate “management alert” that identifies that current issues with the FAFSA form, potential issues that may arise ahead of October 1, and recommendations to ensure a smooth application period.

Additionally, we ask that your larger and full review of the “Better FAFSA” form and the implementation of the FAFSA Simplification Act include, along with any other topics you find appropriate, include a full assessment of the following:

• A detailed chronology of the development, implementation, and management of the form;
• Contributing factors to the form delay, technical malfunctions and backend complications, formula miscalculations, data and processing errors, and other issues;
• The role of contractors in the launch of the FAFSA form;
• The Department’s oversight, performance standards, and review of contractors;
• The Department’s communication and information sharing with impacted communities, including students and higher education institutions;
• The impact of funding and other competing priorities on implementation;
• The deadline for implementation, which was pushed from July 1, 2023 to July, 1, 2024;[10]
• Potential challenges that the Department will need to anticipate ahead of the coming academic year and beyond; and
• Recommendations for corrective action.

The FAFSA form is a gateway to college accessibility and affordability and through this review and recommendations for improvement, we aim to ensure that doors to postsecondary institutions remain open to interested students.

We appreciate your prompt attention to this request.

Sincerely,

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine, a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, joined their colleagues in urging the U.S. Department of Education (ED) to urgently address the issues millions of students across the country have had with the new Free Application for Federal Student Aid (FAFSA) form. Every year, about 17 million students fill out the FAFSA form as a first step to accessing the financial aid needed to cover the costs of higher education. The redesigned FAFSA, which was made possible by the FUTURE Act and the FAFSA Simplification Act Warner and Kaine helped pass, will make it easier for students to get financial aid and help 1.5 million more students, including 37,916 students in Virginia, access the maximum Pell Grant award. However, operational glitches and delays in the rollout of this new version of the FAFSA form have left students and colleges in limbo and locked many families out of the process altogether.

The members wrote, “We are supportive of the Department’s decision to make these adjustments in the updated form, but were disappointed to hear these adjustments would lead to even further delays in this year’s FAFSA processing…We write today to ask for more clarity on how the Department plans to communicate any further delays in FAFSA processing, and how the Department intends to minimize the potential impact on students and families so they can make the most informed decision possible about their futures, including through providing prompt, clear timelines.”

They continued, “Any delays in financial aid processing will most impact the students that need aid most, including many students of color, students from mixed status families, students from rural backgrounds, students experiencing homelessness or in foster care, first-generation students, and students from underserved communities. For institutions to support students’ ability to make informed decisions about their future, they need clear guidance and resources from the Department immediately on any and all next steps.”

“The recent announcements from the Department were a welcome first step in addressing the many challenges students, counselors, aid administrators, and relevant stakeholders are facing in accessing, submitting, and processing the new FAFSA form. But now, it is imperative that we all work together to ensure no student falls through the cracks or faces unnecessary challenges in accessing the aid they are due,” wrote the members.

Last December, Kaine led a bipartisan group of his colleagues in urging ED to provide clear guidance and communication to students, families, educators, college access counselors, and schools leading up to and after the release of the new FAFSA.

The letter was led by U.S. Senators Bernie Sanders (I-VT) and Patty Murray (D-WA) and cosigned by Senators Alex Padilla (D-CA), Chuck Schumer (D-NY), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Sherrod Brown (D-OH), Maria Cantwell (D-WA), Bob Casey (D-PA), Catherine Cortez-Masto (D-NV), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), John Hickenlooper (D-CO), Mazie K. Hirono (D-HI), Mark Kelly (D-AZ), Angus King (I-ME), Amy Klobuchar (D-MN), Ed Markey (D-MA), Jeff Merkley (D-OR), Jon Ossoff (D-GA), Gary Peters (D-MI), Jack Reed (D-RI), Jacky Rosen (D-NV), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Reverend Raphael Warnock (D-GA), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR).

Full text of the letter is available here and below:

Dear Secretary Cardona:

We write today regarding the Department of Education’s (the Department) ongoing implementation of the Free Application for Federal Student Aid (FAFSA) form. Each year, about 17 million students fill out the FAFSA form as a first step to accessing critical financial aid to help cover the skyrocketing costs of higher education.

In 2020, Congress passed the bipartisan FAFSA Simplification Act to make the federal student financial aid process more efficient and straightforward. The FAFSA Simplification Act directed the Department to streamline the application form and make long overdue updates to the formulas that assess a students’ financial need. According to the Department, as a result of this law, the 2024-2025 FAFSA form will ensure 610,000 more students from low-income backgrounds will be eligible to receive a federal Pell Grant, and 1.5 million more students will be eligible to receive a maximum Pell award.

Implementation of these changes was a significant undertaking, one that the Department has had to do with less funding than it anticipated would be needed to complete the job correctly and on time. The Department released the new FAFSA form to the public, incrementally, beginning December 30th, 2023, nearly three months later than usual. But, in a sign of how pivotal the FAFSA is, to date, an estimated 3.6 million FAFSA forms have already been successfully submitted. Even though the newly released FAFSA form did not initially include legally mandated adjustments to the Income Protection Allowance (IPA), the Department’s recent corrective action to implement those adjustments will result in $1.8 billion in additional financial aid for students. We are supportive of the Department’s decision to make these adjustments in the updated form, but were disappointed to hear these adjustments would lead to even further delays in this year’s FAFSA processing.

Any delays in financial aid processing will most impact the students that need aid most, including many students of color, students from mixed status families, students from rural backgrounds, students experiencing homelessness or in foster care, first-generation students, and students from underserved communities. For institutions to support students’ ability to make informed decisions about their future, they need clear guidance and resources from the Department immediately on any and all next steps.  

We were pleased to see the recent announcement of the Department’s plans to provide additional resources and supports for under-resourced high schools and colleges to assist their students with the FAFSA form, and to deploy federal staff to support aid efforts. We urge the Department to distribute these resources and tools to schools and institutions of higher education as quickly as possible, and to clearly communicate with stakeholders about the ways to access these resources and how these new resources will support students, families, and student aid administrators in submitting and processing the FAFSA form. 

We write today to ask for more clarity on how the Department plans to communicate any further delays in FAFSA processing, and how the Department intends to minimize the potential impact on students and families so they can make the most informed decision possible about their futures, including through providing prompt, clear timelines. 

We kindly request that the Department provide responses to the following set of questions:

1. The Department has indicated it will send IPA-adjusted and finalized FAFSA data in early March, it is imperative that this data is sent to institutions as early in March as possible. On what date in March does the Department intend to send finalized information to relevant stakeholders? When will the Department disperse its test data to institutions of higher education so that they can test their infrastructure and best prepare to create financial aid packages for students?  How and when will the Department communicate with relevant stakeholders if this intended plan changes?
2. How is the Department communicating with relevant stakeholders, such as students, families, and college financial aid professionals, in a timely and culturally responsive manner about the ongoing FAFSA delay and ongoing issues for some students, including students from mixed status families, in submitting the form? How often will any supportive materials be updated to reflect the most up to date information, and how can stakeholders access this information?
3. In light of the repeated delays in institutions receiving relevant aid information, as well as ongoing issues for some students in submitting the form, will the Department consider reducing the rate of students selected for additional verification to ensure students do not face further barriers to receiving the aid they are due?
4. How is the Department working to ensure all under resourced high schools and colleges that need assistance in FAFSA processing are aware of and have access to the resources offered by the Department to assist them?
5. Is the Department working with state aid agencies and other relevant stakeholders to ensure timely processing and delivery of other forms of financial aid such as scholarship or state aid for students?
6. Will the Department ask states, and colleges and universities to relax any admissions or scholarship deadlines to ensure students have ample time to apply for additional aid and make informed decisions about their futures? 
7. Are any of the implementation challenges caused by the lack of resources? Detail whether there are specific requests that Congress can respond to in order to help address related issues moving forward.

The recent announcements from the Department were a welcome first step in addressing the many challenges students, counselors, aid administrators, and relevant stakeholders are facing in accessing, submitting, and processing the new FAFSA form. But now, it is imperative that we all work together to ensure no student falls through the cracks or faces unnecessary challenges in accessing the aid they are due.

Sincerely,

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) wrote to U.S. Department of Education (DOE) Secretary Miguel Cardona to urge the DOE to combat antisemitism and Islamophobia on college and university campuses. Since the onset of the Israel-Hamas crisis, higher education institutions have seen a precipitous rise in antisemitism and Islamophobia, including hate speech, harassment, and violence – creating an environment of fear and vulnerability for students.

“We write to express our concern about the alarming rise in antisemitism and Islamophobia in the United States following the recent violence in Israel and Gaza. These events have had a profound impact on our college and university campuses, where students of all backgrounds come together to learn and engage,” the senators wrote.

The letter draws attention to a few specific and recent examples of Islamophobia and antisemitism on college campuses. At Stanford University, an Arab Muslim student was the victim of a hit-and-run, where the perpetrator shouted vulgar and racist remarks during his attack. At Cornell University, a student posted violent threats online against the Jewish community, subsequently leading to his arrest. 

“In the face of these challenges, it is essential that we stand together as a nation against discrimination, xenophobia, and bigotry. Hate has no place in America, and our educational institutions play a pivotal role in ensuring that,” the senators continued. “We look forward to your continued dedication to this important issue. We are hopeful that, together, we can create a safer environment for students at our colleges and universities.”

In the letter, the senators specifically call on the DOE to:

• expand the Antisemitism Awareness Campaign, 
• craft an Islamophobia Awareness Campaign, 
• conduct additional outreach to Jewish, Muslim, Israeli, Palestinian, and Arab student communities, and
• provide resources to colleges and universities from the Department of Education’s Office of Civil Rights.

Sens. Warner and Kaine have long been vocal advocates against Islamophobia and antisemitism. Earlier this week, they also sent a letter to the Office of Personnel Management and the Office of Special Counsel requesting guidance on the self-expression rights of federal workers as related to the conflict and humanitarian crisis in the Gaza Strip. 

A copy of the letter is available here and below:

Dear Secretary Cardona:

We write to express our concern about the alarming rise in antisemitism and Islamophobia in the United States following the recent violence in Israel and Gaza. These events have had a profound impact on our college and university campuses, where students of all backgrounds come together to learn and engage.

The United States prides itself on being a nation that values diversity, inclusion, and religious freedom. Unfortunately, hate-fueled incidents targeting Jewish, Muslim, Israeli, Palestinian, and Arab students on our college campuses have shown that we still have much work to do to uphold these values. Incidents such as hateful rhetoric, harassment, vandalism, and threats have been reported, creating an environment of fear and vulnerability for students, many of whom have deep and personal connections to the region and the ongoing conflict.

At Stanford University, an Arab Muslim student was the victim of a hit-and-run, where the perpetrator shouted vulgar and racist remarks during his attack. At Cornell University, a student posted violent threats online against the Jewish community, subsequently leading to his arrest. Sadly, these are just a few of the startling incidents reported across the country, and we must do all we can to prevent it from growing.

We want to commend the Department of Education for the creation of the Antisemitism Awareness Campaign, which lays out a set of initiatives to ensure that all students, including Jewish students, are able to attend school free from discrimination. Recent events have highlighted the urgency and importance of continuing and expanding this campaign, which we urge you to do.  

Similarly, in following the Administration’s recent announcement to establish the first-ever National Strategy to Counter Islamophobia, we urge you to build upon that and create an Islamophobia Awareness Campaign for educational institutions. Through this effort, it is critical to acknowledge that Islamophobia also hurts those who are not of the Muslim faith. Individuals perceived to be Muslim, such as members of the Christian Arab and Sikh community, have unfortunately experienced the pain of anti-Muslim hate.

As you work to combat these various acts of hate, we also ask you to expand outreach to Jewish, Muslim, Israeli, Palestinian, and Arab student communities. This outreach should aim to address the specific concerns and challenges faced by these communities and provide a platform for support and action. By actively listening and understanding their unique concerns, we can work towards creating an environment where students feel safe, heard, and protected. 

Additionally, we were pleased to learn that the Department of Education recently issued a Dear Colleague reminding schools of their legal obligation to provide all students with a learning environment free from discrimination. This Dear Colleague included an updated discrimination complaint form, which specifies additional protections for students under Title VI of the Civil Rights Act of 1964. We appreciate these efforts and request that you continue to provide comprehensive information and resources from the Department of Education’s Office of Civil Rights to colleges and universities. These tools can empower educational institutions to respond effectively to and report discrimination, harassment, bias, and related incidents.

In the face of these challenges, it is essential that we stand together as a nation against discrimination, xenophobia, and bigotry. Hate has no place in America, and our educational institutions play a pivotal role in ensuring that. 

We look forward to your continued dedication to this important issue. We are hopeful that, together, we can create a safer environment for students at our colleges and universities.

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WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and John Thune (R-SD) urged the Internal Revenue Service (IRS) to more effectively promote educational assistance programs that would help alleviate the burden of student loan payments. Specifically, the senators are focused on efforts to make employers and employees aware of their Employer Participation in Repayment Act, which allows employers to contribute up to $5,250 tax-free to employees’ student loans annually through 2025.

“This provision within section 127 is a win-win for employers and employees, as it provides a pathway towards student loan debt relief for borrowers and provides employers with another option to recruit and retain talent necessary to grow their businesses,” the senators wrote.

In April of this year, Sen. Warner questioned IRS Commissioner Danny Werfel on the organization’s outreach efforts regarding benefits available to borrowers. During the exchange, Commissioner Werfel committed to devoting significant efforts to making taxpayers aware of these benefits. Since then however, little progress has been made to make employers and employees aware of these programs, which would greatly reduce stress of monthly payments for borrowers and help employees retain qualified candidates.  

“During your testimony before the Senate Finance Committee on April 19, 2023, you stated that outreach on section 127, including ensuring that taxpayers are aware of such benefits, is a top priority of the agency,” the senators continued. “However, we have found that resources on educational assistance programs are difficult to locate on the IRS website. Additionally, within these hard-to-find and limited resources, the expansion of the program to include student loan debt as a qualifying tax-free educational expense is not highlighted as new information and the eligibility window is deeply buried. Furthermore, online IRS webinars have failed to adequately promote employer-provided educational assistance programs and call attention to student loan debt payments as a qualifying expense.” 

The senators requested the IRS take a series of steps to better promote these programs and ensure that employers and employees are fully aware of the benefits afforded to them, including that:

• The IRS host and publish webinars on employer-provided educational assistance programs;
• The IRS publish new and robust resources to aide employers seeking to take advantage of section 127 benefits;
• And the IRS communicate expanded section 127 benefits and new resources to employers and employees, including, but not limited to, transmitting this information through IRS e-newsletters for business owners.

Created in 1978 and made permanent in 2012, section 127 of the IRS Code provides a tax benefit allowing employers to contribute up to $5,250 in tax-free annual assistance to employees pursuing continued education. In 2019, with broad bipartisan support, Sens. Warner and Thune introduced the Employer Participation in Repayment Act, legislation that extends this tax-free benefit to employees’ existing student loans. The senators played a key role in extending this provision through 2025 as part of the 2021 government spending package.  

A copy of the letter can be found here and below. 

Dear Commissioner Werfel,

We write to urge the Internal Revenue Service (IRS) to take meaningful steps to effectively promote educational assistance benefits provided under section 127 of the Internal Revenue Code, specifically the temporary provision within the law that allows employers to contribute up to $5,250 tax-free towards their employees’ student loans annually. This provision within section 127 is a win-win for employers and employees, as it provides a pathway towards student loan debt relief for borrowers and provides employers with another option to recruit and retain talent necessary to grow their businesses.

Nationwide, Americans owe more than $1.7 trillion in student loan debt, outstripping credit cards and auto loans as the country’s leading source of non-housing debt. With increased college costs leading to students taking on more debt, the need for innovative solutions to ease the burden of student loan debt is greater than ever. That is why we were pleased to secure passage of our Employer Participation in Repayment Act (EPRA), which reformed educational assistance programs under section 127 to include student loans payments as a qualifying educational expense.

Prior to this change, employers with educational assistance programs could provide their employees with up to $5,250 per year in tax-free benefits for ongoing education purposes (e.g., tuition and fees). The EPRA provision that we championed as part of the CARES Act amended section 127, expanding the $5,250 tax-free, annual benefit to include student loan payments through 2020, with subsequent legislation extending this benefit through 2025. In other words, as a result of this change in the law, employers are provided with an important tool to help their employees pay down outstanding student loan debt.

The modernization of section 127 better meets the needs of today’s workforce, as it not only helps individuals pay down their student loans, but also serves as a unique tool for employers to attract and retain talented employees. Additionally, employer-sponsored student loan repayment under section 127 helps employees get out of debt faster and put more of their hard-earned paycheck towards other necessities. While we were proud to champion this necessary expansion of section 127, as its sunset date approaches we want to make sure that we are maximizing the reach of this important benefit.

According to a 2023 survey of over 4,000 participants representing independent organizations, 48% of respondents indicated that their organization provides undergraduate or graduate tuition assistance. However, only 8% of responding organizations shared that they offer student loan repayment as an educational assistance benefit. This underscores the need for the IRS to use all tools at the agency’s disposal to increase awareness among employers about recent changes to section 127. Furthermore, the IRS should take steps to ensure that employers of all sizes have resources available to them to quickly form an educational assistance program for their workforce.

During your testimony before the Senate Finance Committee on April 19, 2023, you stated that outreach on section 127, including ensuring that taxpayers are aware of such benefits, is a top priority of the agency. However, we have found that resources on educational assistance programs are difficult to locate on the IRS website. Additionally, within these hard-to-find and limited resources, the expansion of the program to include student loan debt as a qualifying tax-free educational expense is not highlighted as new information and the eligibility window is deeply buried. Furthermore, online IRS webinars have failed to adequately promote employer-provided educational assistance programs and call attention to student loan debt payments as a qualifying expense.

To ensure that employers and employees are fully aware of the benefits afforded to them under section 127, we request that you take the following actions:

1)      We request that the IRS host and publish webinars on employer-provided educational assistance programs. Webinars should provide details on student loan debt being a qualifying expense under section 127 and provide participants with the opportunity to engage in a meaningful Q&A session with IRS staff. Furthermore, webinars should be scheduled with adequate notice periods, promoted in conjunction with relevant stakeholders, including industry associations, and published prominently on the agency’s website for future reference.

2)      We request that the IRS publish new and robust resources to aide employers seeking to take advantage of section 127 benefits. These new resources should include a sample written plan for employers to utilize and the addition of a ‘Frequently Asked Questions’ section on employer-provided educational assistance programs to the IRS webpage. These resources should be clearly visible and prominently displayed on the IRS webpage.

3)      Finally, we ask that the IRS communicate expanded section 127 benefits and new resources to employers and employees, including, but not limited to, transmitting this information through IRS e-newsletters for business owners.

We are hopeful that by providing additional resources and informing employers and employees of section 127 benefits, we will address our shared goals of promoting workforce development, improving worker recruitment and retention, and providing much-needed student loan debt relief.

We appreciate your attention to this matter and look forward to your prompt response.

Sincerely,

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WASHINGTON – Today, U.S. Senators Mark R. Warner and Tim Kaine announced $1,599,645 in federal funding through the Augustus F. Hawkins Center of Excellence program to address teacher shortages by supporting Virginia Commonwealth University’s (VCU) RTR teacher residency program. The funding will be used to recruit and support more teacher candidates from diverse backgrounds and provide them with the skills they need to teach in high-need schools. It will provide training and development through the Virginia Adult Literacy Resource Center (VALRC) and Multilingual Ambassador Program (MAP) to prepare teachers to support bilingual and multilingual students and provide a pathway for bilingual and multilingual adults to become teachers. The program will also offer professional development and an alumni network to retain a diverse teaching workforce. The RTR program partners with Richmond, Petersburg, Chesterfield County, and Henrico County public schools.

“As Virginia and our nation face educator shortages, it’s critical that we’re recruiting more Americans to fill these roles and providing them with the skills they need to help our students succeed,” said the senators. “We’re glad this funding will help address teacher shortages and increase diversity in the teacher workforce to better meet students’ needs, especially in such a diverse community like Central Virginia.” 

The funding was awarded by the U.S. Department of Education’s Augustus F. Hawkins Centers of Excellence (Hawkins) program, which supports the establishment of centers of excellence at Minority Serving Institutions (MSIs), like Historically Black Colleges and Universities (HBCUs) and Asian American and Native American Pacific Islander-Serving Institutions (AANAPISIs) with a state-accredited teacher preparation program to help increase the number of well-prepared teachers, including teachers of color. VCU was designated an AANAPISI in 2022. The majority of students in our nation’s public schools are students of color, but the teaching workforce is only comprised of 20 percent teachers of color. 

Warner and Kaine have long supported efforts to address the teacher shortage and expand diversity in the field. Kaine has introduced the PREP Act, which would address teacher and principal shortages, particularly in rural communities, and increase teacher diversity. Kaine also introduced the DIVERSIFY Act, which would strengthen the Teacher Education Assistance for College and High Education (TEACH) grant program, helping attract more teachers to the field and expand teacher diversity. Kaine has also introduced legislation to address educator shortages and increase children’s access to a diverse and well-prepared educator workforce by strengthening the federal Teacher Loan Forgiveness Program.

WASHINGTON –U.S. Sens. Mark R. Warner (D-VA) and Marsha Blackburn (R-TN) joined Reps. Doris Matsui (D-CA-07), Representative Zach Nunn (R-IA-03) reintroduced the Enhancing K-12 Cybersecurity Act, legislation to strengthen cybersecurity at America’s K-12 schools by promoting access to information, better tracking cyberattacks nationally, and providing new cybersecurity resources.

“As cyberattacks continue to expose private information and disrupt infrastructure across industries, including in education, with increased frequency, we must ensure that schools are in the best position possible to prevent and respond to attacks,” said Sen. Warner. “This legislation will put in place necessary procedures to protect our students’ data and keep sensitive information private.”

“Cyberattacks continue to grow in size, frequency, and complexity in critical U.S. institutions, including in America’s schools,” said Sen. Blackburn. “We must ensure that our education sector is equipped to address these threats and keep students’ personal information private. This bipartisan and bicameral legislation will improve the cybersecurity tracking system for schools and provide them with necessary training resources and best practices for prevention.”

“From ransomware to data breaches, cyberattacks targeting our K-12 schools are growing increasingly sophisticated and common, necessitating a robust response to keep our students and teachers safe,” said Rep. Matsui. “Cybercriminals are rapidly evolving their strategies to cause chaos and disruption, yet a lack of resources for our schools is forcing them to do more with less. The Enhancing K-12 Cybersecurity Act would establish a crucial roadmap to prepare our K-12 cyberinfrastructure for future attacks.”

“When I was working on the White House’s National Security Council, I witnessed firsthand how important it is to prioritize cybersecurity. With these crimes on the rise, it’s imperative that we provide our schools with the tools to keep students’ information secure,” said Rep. Nunn. “In the wake of the ransomware incident in January, I’m proud to work across the aisle to ensure our schools have the resources and training they need to protect students.”

Cyberattacks targeting schools are increasing in frequency and severity. These attacks have threatened students’ privacy and caused harmful classroom disruptions. According to the K-12 Cybersecurity Resource Center, from 2016-2021 there were over 1,300 publicly disclosed cyber incidents involving education organizations across all 50 states. These cyber incidents included ransomware, data breaches, and denial-of service attacks, among others.

Last September, the Federal Bureau of Investigation (FBI), the Cybersecurity and Infrastructure Security Agency (CISA), and the MultiState Information Sharing and Analysis Center (MS-ISAC) released a Cybersecurity Advisory outlining the significant cyber threat facing K-12 institutions, noting certain cybercriminals are “disproportionately targeting the education sector with ransomware attacks,” and that they anticipated increases in such attacks. As schools continue to expand the use of digital platforms to engage students, the Enhancing K-12 Cybersecurity Act provides additional resources to address cyber threats and protect personal information.

Specifically this bill:

• Directs the Cybersecurity and Infrastructure Security Agency Director to establish a Cybersecurity Information Exchange to disseminate information, best practices, and grant opportunities to improve cybersecurity.
• Establishes a Cybersecurity Incident Registry within CISA to track incidents of cyberattacks on elementary and secondary schools. Information submitted to the Registry is strictly voluntary and will help improve data collection to coordinate activities related to the nationwide monitoring of the incidence and financial impact of cyberattacks.
• Directs CISA to establish the K-12 Cybersecurity Technology Improvement Program to be administered through an information and analysis organization to deploy cybersecurity capabilities that will help address cybersecurity risks and threats to information systems of K-12 schools. This approach will capitalize on the existing services and expertise of organizations like MS-ISAC & others to ensure maximum impact of funds. The bill authorizes $10 million per year for FYs ‘24 & ‘25 to fund the Technology Improvement Program.

Full text of the Enhancing K-12 Cybersecurity Act is available here.

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WASHINGTON –– Today, U.S. Sens. Mark Warner (D-VA) and Todd Young (R-IN) were joined by Sens. Marco Rubio (R-FL), and Chris Coons (D-DE) in reintroducing the ISA Student Protection Act to support an innovative financing tool for students pursuing postsecondary education. The bipartisan bill would protect students by applying strong consumer protections to Income Share Agreements (ISAs).

ISAs provide opportunities for students to make plans for financing higher education based on their future income and job success. Under an ISA, a student agrees to pay a percentage of their income over a given time period in exchange for tuition payments from nongovernmental sources. When the agreed timeframe ends, the student stops payments regardless of whether the full amount has been paid back.

 “Income-Share Agreements are a promising way to finance postsecondary education and an attractive alternative to high-interest student loans,” said Sen. Warner. “There are students across the country who are already benefitting from ISAs and deserve the safeguards and certainty the ISA Student Protection Act of 2022 would provide.”

“Hoosiers should not be forced to make a choice between a quality education and an affordable one. In the midst of record-high inflation, many students and families continue to face financial hardship and an increase in student loan debt,” said Sen. Young. “With the appropriate safeguards, ISAs can be an innovative, debt-free financing option for Hoosier students. Our bipartisan bill works to strengthen the framework for ISAs, enabling both colleges and career and technical schools to prepare students for success in the workforce without burdening taxpayers.”

 “Everything is more expensive these days, especially the cost of a college degree. This common sense bill creates a debt-free financing option for students,” said Sen. Rubio.

“Income Share Agreements are a useful alternative for some students who need financing for postsecondary education and training, especially when federal student aid is not available. The ISA Student Protection Act of 2023 would establish guardrails to protect these students as they begin their careers while creating legal certainty for providers who develop these innovative financial offerings,” said Sen. Coons. “With trillions of dollars in U.S. student loan debt burdening the country’s workforce, I’m glad to move forward on bipartisan legislation to strengthen additional financing options for students who are preparing for success.”

Specifically, The ISA Student Protection Act of 2023 would:

1. Prohibit ISA providers from entering into agreements with students that require payments higher than 20 percent of income.
2. Exempt individuals from making payments towards their ISA when their income falls below an affordability threshold.
3. Set a maximum number of payments and limits payment obligation to the end of a fixed window.
4. Set a minimum number of voluntary payment relief pauses, during which payment obligations may be suspended.
5. Require detailed disclosures to students who are considering entering into an ISA, including the amount financed, the payment calculation method, the number of payments expected, the length of the agreement, and how their payments under the ISA would compare to payments under a comparable loan.
6. Provide strong bankruptcy protection for ISA recipients by omitting the higher “undue hardship” standard for discharge required under private loans.
7. Prevents funders from accelerating an ISA in default.
8. Ensure that ISA obligations cease in the event of death or total and permanent disability.
9. Apply federal consumer protection laws (e.g., Fair Credit Reporting Act, Fair Debt Collection Practices Act, Military Lending Act, Servicemembers Civil Relief Act, Equal Credit Opportunity Act) to ISAs.
10. Give the Consumer Financial Protection Bureau regulatory authority over ISAs.
11. Clarify the tax treatment of ISA contributions for both funders and recipients.

“Without legislative and regulatory certainty, Income Share Agreements will not be widely available at scale as an alternative to high interest rate parent plus or personal loans,” said Mung Chiang, President of Purdue University. “We commend Sen. Young and the bipartisan Senate sponsors introducing legislation today and encourage prompt consideration to provide the framework necessary to expand this student-friendly option as soon as possible."

“The cost of higher education and workforce training has skyrocketed and has become a significant obstacle to economic advancement,” said Maria Flynn, CEO of Jobs for the Future. “JFF applauds Senators Warner and Young for introducing the ISA Student Protection Act, which would support the exploration of income share agreements (ISAs) as an alternative model for financing higher education and training. JFF recognizes the need to protect against any possible risks with ISAs, which is why we are pleased to see that this legislation would provide clear definitions, parameters, and consumer protections for students.”

“Student Freedom Initiative has issued 176 Income Contingent Alternatives to Parent PLUS and private loans to junior and senior STEM students at Historical Black Colleges and Universities (HBCU) and over 300 students have applied,” said Mark Brown, Executive Director of Student Freedom Initiative. “Disbursements total just over $1.75M with an average disbursement of $13,672 per student. Sixty-three percent of HBCU students use Parent PLUS loans which default at five times the rate as similar instruments and the debt is held twice as long. We must invest in these students and not strap their parents with debt they cannot reasonably pay. Issuing conventional loans to families of limited means, some already in poverty, is unethical. Student Freedom Initiative strongly supports providing students, especially those living at or below the poverty level, with innovative solutions to financing their higher education, and we hope Congress will provide sensible regulations and legal certainty to those engaged in this effort.”

“The ISA Student Protection Act is a significant step forward in shaping the promising ISA model into a safe, sustainable, student-centric source of funding for workforce training,” said Peter Callstrom, President and CEO of the San Diego Workforce Partnership. “This legislation will empower entrepreneurial and innovative agencies like ours to continue exploring how ISAs can expand the reach and impact of talent development strategies.”

“The ISA Student Protection Act of 2023, introduced by Senators Warner and Young, will help create more accessible, affordable and accountable financing options for postsecondary education and training,” said Taylor Maag, Director of Workforce Development Policy for Progressive Policy Institute. “PPI has long supported Income-Share Agreements as a bold and innovative model for higher education financing and we applaud this effort to expand postsecondary opportunities for today’s students, while ensuring the necessary protections for their success.”

“Well-designed ISA programs open up support for student underserved in the current system, and they do so in a way that is affordable and aligned to students' educational and career success,” said Kevin James, Founder and CEO of Better Future Forward. “To ensure all students are protected and can benefit from these options, we need a strong, well-designed consumer protection framework built around the risk-sharing nature of ISAs. This bipartisan legislation is a strong step forward in that regard, and we commend Sens. Young, Warner, Coons, and Rubio for their work on it.”

“Stride Funding was built to improve educational access, career success, and economic mobility for all Americans. As tuition costs continue to rise, the cost of the American Dream has become inaccessible for millions of students, with economically disadvantaged students particularly handicapped due to standard student loan borrowing requirements tied to family economic status and credit background,” said Tess Michaels, Founder and CEP of Stride Funding. “Without innovation, all students have been left with limited access to affordable and flexible education funding and our most vulnerable students have been altogether denied pathways to educational programs that deliver real career value.  We congratulate and thank Senators Young, Warner, Coons, and Rubio for their leadership in crossing party lines to sponsor the ISA Student Protection Act of 2023 – ensuring that future generations gain access to more transparent, equitable, and accessible education funding through Income Share Agreements.”

Full text of the legislation is available here.

WASHINGTON — Today, U.S. Sens. Mark R. Warner and Tim Kaine announced $6,999,632 in federal funding for the Hampton Roads Community Action Program and Total Action Against Poverty in Roanoke Valley to provide training and career counseling services to incarcerated individuals so that they are prepared for employment opportunities and able to successfully transition into the workforce following their release.

“By expanding employment opportunities for formerly incarcerated Virginians, we can help them successfully transition back into the community, reduce recidivism, and strengthen our neighborhoods,” said the senators. “This federal funding will help individuals find employment and stay on the right track.”

The funding is distributed as follows:

• $3,999,633 for the Hampton Roads Community Action Program, Inc. in Newport News
• $2,999,999 for Total Action Against Poverty in Roanoke Valley, Inc. in Roanoke

The grants were awarded through the U.S. Department of Labor’s Employment and Training Administration (ETA)’s Pathway Homes program, which works to improve employability outcomes for adults during the reentry process from incarceration. 

In 2018, Warner and Kaine voted to pass the First Step Act, which reauthorized grant funding for state and local reentry programs that reduce recidivism. In 2015, Warner and Kaine successfully urged President Obama to “ban the box” on federal job applications to help expand job opportunities and reduce recidivism among ex-offenders. “Ban the Box” refers to the section on job application forms that inquired whether the applicant has ever been convicted.

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