On February 9, 2017, the federal government announced that colleges and universities would begin to receive student loan repayment information and payment information under the new College Financial Access Act.
The College Financial Accountability and Transparency Act, also known as the Fair Pay Act, is a federal law passed in December of last year that aims to help student borrowers navigate the financial industry and better understand their options.
Under the act, colleges and institutions will receive loan repayment data and payment info from the Consumer Financial Protection Bureau and the Department of Education, as well as information about the costs associated with the loans they offer students.
The data will be made available to students, parents, and their financial advisors, who will be able to make decisions about their options based on the financial aid they receive.
The act also aims to improve student loan servicing, making it easier for borrowers to get loans and pay them off more quickly.
Unfortunately, the Act is only part of a broader plan to improve the way the U.S. financial system works and the incentives for students to receive aid.
The federal government will also provide $300 million to states to help them meet their loan repayment goals, as a part of the Pell Grant and Work Opportunity Tax Credit, and $500 million in additional federal aid for college students to help with their costs associated in paying off their loans.
Under both of these initiatives, the government will be providing loans and other financial aid assistance to a wide variety of borrowers, regardless of their financial need, and it will also be supporting states in the form of loans and grants to states that provide support for financial aid to low-income students.
While the Federal Student Aid Act has a number of benefits, the act has also been criticized for being overly aggressive and burdensome.
Some student loan borrowers and advocacy groups have also raised concerns about the law’s impact on students’ ability to pay back their loans, which have been a major source of stress for many borrowers.
However, there are many other aspects of the bill that will benefit students as well.
The bill also provides a significant increase in federal student loan relief for low- and moderate-income borrowers, as the amount of aid provided to borrowers with student loan debt is already at a record high, and the amount will go up even more for those with student loans of $200,000 or more.
In addition, the legislation also gives states additional flexibility to determine how to fund their own programs, including eliminating a provision that requires states to provide loan repayment assistance to the poorest students.
In short, the College Financial Services and Opportunity Act of 2017 is a major win for borrowers and a win for the entire financial industry, and its impact will likely be felt throughout the financial services sector.
For more information about college financial aid and to get a free copy of our guide, visit collegefinancialaid.gov.
For a list of other changes to the financial system that will affect students and their families, check out our list of major financial reforms that are set to affect student loan payments and other issues affecting families and borrowers.
For other financial services news, check back to The Consumer.