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Federal Student Aid's core mission is to ensure that all eligible Americans benefit from federal financial assistance—grants, loans and work-study programs—for education beyond high school. The programs Federal Student Aid administers comprise the nation's largest source of student financial aid: during the 2010–11 school year alone ...
Student loans may be discharged through bankruptcy, but this is difficult. [2] Research shows that access to student loans increases credit-constrained students' degree completion, later-life earnings, and student loan repayment while having no impact on overall debt. [3]
The Elementary and Secondary Education Act (ESEA) was passed by the 89th United States Congress and signed into law by President Lyndon B. Johnson on April 11, 1965. Part of Johnson's "War on Poverty", the act has been one of the most far-reaching laws affecting education passed by the United States Congress, and was reauthorized by the No Child Left Behind Act of 2001.
More than 4 million student loan borrowers have enrolled in the new income-driven repayment plan that the Biden administration touts as “the most affordable ever.”
However, FedLoan stopped servicing federal student loans after December 2022 and the Department of Education then transferred the loans it was servicing to Nelnet, Edfinancial, Aidvantage or MOHELA.
In 10 years, the loan program experienced 230% growth in the loan portfolio and 130% growth in the loan recipients. Student loan debt in 2019 is the highest it has ever been. According to the latest loan debt statistics, student loan debt has become the second highest consumer debt category behind mortgage debt. [15]
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