Following Northern Illinois University Town Hall, Underwood Introduces Legislation to Simplify Student Loans Application Process | Representative Lauren Underwood
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Following Northern Illinois University Town Hall, Underwood Introduces Legislation to Simplify Student Loans Application Process

September 6, 2019

Legislation would reduce barriers to financial aid for Pell Grant recipients, increase transparency in loan application process

WASHINGTON— Today, Congresswoman Lauren Underwood (IL-14) introduced the File Once FAFSA Act and the Student Loan Contract Act to simplify and increase transparency in the student loan application process. Each year, nearly 2 million undergraduate students who would have qualified for federal Pell Grants fail to apply for or refile the Free Application for Federal Student Aid (FAFSA). Research suggests that the complexity of the application process prevents many students from obtaining aid.

The File Once FAFSA Act (H.R. 4240) would simplify the application for students by replacing the annual refiling requirements with a one-time FAFSA filing requirement for Pell-eligible students. This legislation ensures that any Pell-eligible student who completes the FAFSA for the first time, and learns they are eligible for a Pell Grant, will not be required to refile the FAFSA. If enacted, the bill would help over 7 million low-income students obtain Pell Grants more easily. This legislation is co-sponsored by freshmen Representatives Mary Gay Scanlon (D-PA) and Dr. Kim Schrier (D-WA).

File Once FAFSA Act 2019 Fact Sheet

The Student Loan Contract Act (H.R. 4241) makes a simple change to increase transparency in the student loan application process. The Student Loan Contract Act renames what is currently referred to as a "master promissory note" to reflect what it is: a student loan contract. The Student Loan Contract Act is co-sponsored by freshmen Representatives Elaine Luria (D-VA) and Mike Levin (D-CA).

"Higher education is one of the most valuable resources we have, but for many Americans, the application process for student loans is overly confusing and burdensome. The File Once FAFSA Act and the Student Loan Contract Act would break down these barriers, increasing students' ability to maximize financial aid awards and empowering them to make informed financial decisions," said Underwood.

Earlier this week, Underwood hosted a town hall with NIU students during which she addressed college affordability, mental health care, and protecting access to education for Dreamers. During her visit, Underwood met with Northern Illinois University (NIU) President, Lisa Freeman, to discuss college affordability and the urgent need to modernize Pell Grants for students. Last school year, approximately 700 NIU students who are residents of the 14th District received Pell Grants.

"We share Representative Underwood's commitment to making an affordable higher education more accessible. With over 40% of our current undergraduate students receiving federal Pell grants, we appreciate her efforts to reduce the barriers students in Illinois and across the nation face when seeking federal financial aid," said Sol Jensen, Vice President of Enrollment Management, Marketing, and Communications at NIU.

In Congress, Underwood is a member of the Committee on Education and Labor and has worked to increase transparency within the Department of Education for students. In March, Underwood wrote to the former Department of Education Secretary Betsy DeVos on the Department's failure to appropriately respond to borrowers who default on their student loans. In the letter, Underwood expressed concern for borrowers experiencing unacceptably long hold times when contacting the Department to receive clear information about their financial options or reasonable options for getting their payments back on track.

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Issues:Education