Higher Education Bill

Senator Lamar Alexander says that the bill to re-approve the Higher Education Law must go through the education committee in about a month to give it time to go through Congress this year…read more

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Opinion Piece: Student Loan Borrowers Absolutely Should NOT Vote for Buttigieg, Biden

Anyone have thoughts on this article?


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Budget Proposal ED Cuts

Current administration today released its fiscal year 2021 budget request, which proposes a $5.6 billion cut to Department of Education programs. The $66.6 billion funding request amounts to a 7.8% decrease compared to what was enacted in fiscal year (FY) 2020, and includes alarming cuts to several student aid programs, including eliminating the Public Service Loan Forgiveness and Federal Supplemental Educational Opportunity Grant programs, and eliminating subsidized student loans. However, the budget also includes support to allow incarcerated individuals to have access to the Pell Grant, at an estimated cost of $10 million in the first year.

Notably, the budget also included several policy proposals for which NASFAA has advocated, such as allowing financial aid professionals the flexibility to set lower loan limits and require annual loan counseling in certain nondiscriminatory situations, and bringing independent oversight to the Department of Education’s Office of Federal Student Aid (FSA), to ensure accountability for taxpayers, transparency for
policymakers, and collaboration for stakeholders. The proposal also calls for limits to the amount that can be borrowed by graduate students and parents — ideas that NAFSAA has also explored in recent years.

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Entrance and Exit Counseling Effectiveness

STUDENT LOAN COUNSELING is required for student loan borrowers; however, each year students exit their school unaware of how much they borrowed, and many think they owe nothing…read more from US News and World Report

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Loan rehabilitation is a one-time "Get out of default" card. Here’s how it works:

The collection agency sets a monthly payment based on your income, minus any reasonable monthly expenses. The amount could be as low as $5 a month.

You’ll need to provide documentation, like copies of pay stubs and bills, and complete a detailed form to help determine the amount. Any wages garnished due to defaulted student loans will be considered among your expenses.

Make nine payments of the agreed-upon amount within 10 months and your loans move out of default. Any wage garnishment will stop. And you’re once again able to choose a repayment plan that works for you, including several income-based options that could drop your monthly payment to $0.

Once out of default, take care to stay out. Make your payments each month. Recertify your income every year if you’re on an income-based plan. And call your loan servicer if you run into trouble. If you default a second time, you’ll have fewer options.

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2018 SFA Conference – Atlanta

2018 SFA Conference Highlights:

  • Sec of Ed Betsy DeVos – Accountability and student loan debt is crisis
  • Third Party Audits- Not necessary if all you are doing is default prevention. Just file an Assertion Letter with ED. "Third Party Oversight Group" in Kansas City. See Dear Colleague Letter Gen 16:15

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IBR Great but Don’t Over Sell It.

Is IBR plans helpful? I just recently read this article about IBR’s take a look here…https://www.forbes.com/sites/prestoncooper2/2018/08/07/income-based-repayment-reduces-student-loan-delinquency-but-dont-oversell-it/#7cf66f6e37d0

Matt Klabacka

702-610-8574 mobile/text

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