Twelve days out from the start of her senior year at Texas Christian University, Kaylee Webb was still waiting for a $19,000 Parent PLUS Loan that would help pay for tuition, fees, room and board at her dream school—as it had every semester so far. So I went to speak with them in person. They were just like, ‘Sorry, you’re not eligible.’” This fall marks the first academic year since sweeping changes to federal student loans took effect in July, including a limit on the previously uncapped Parent and Grad PLUS loans.
Webb and other existing borrowers didn’t think they would be affected because of a legacy provision outlined in the law, as well as the Education Department’s final rule, which was released in April. But then ED clarified its interpretation in early August. A TCU official told them that based on that August clarification, legacy access was no longer calculated by the length of time a student was enrolled, but the number of credit hours they had completed.
Since Kaylee had exceeded the minimum number of credits hours for her degree—120—she was no longer protected. In a statement to _Inside Higher Ed_, the university said that while it never wants to see a family “negatively impacted,” the “subsequent administrative guidance and rulemaking from the Department of Education changed how loan eligibility is determined.” (ED has said the clarification didn’t represent a change in policy.) Half of Kaylee’s credits came from an associate degree that she earned in high school in an effort to save money. Katrina said she was “devastated.” Kaylee Webb (right) said her heart was set on TCU; it was the only school she applied to.
Now, she gets to share her Horned Frog spirit with her sister Jaci (left) and mom, Katrina (right). These are all kids that tried to get ahead, and now they’re being punished. I don’t think that’s fair for any of us when we’re trying our best.” But not all colleges see the department’s clarification, delivered via a webinar, as binding.
And even groups like the National Association of Student Financial Aid Administrators say they can’t provide blanket advice and are encouraging institutions to consult with their own legal counsel. Loyola Marymount University in Los Angeles told _Inside Higher Ed_ that it would stick to the department’s final rule and base loan eligibility on years enrolled, not credit hours, as that is the “current written interpretation.” “LMU is aware of the Department of Education’s discussion of a different interpretation during its August [webinar] and is awaiting formal written guidance from the Office of Federal Student Aid before making any changes to its financial aid policies,” a spokesperson said in an email. That decision left Kathryn Cook, a business owner and student, without the Grad PLUS loan she needed to pay for the last of four years in LMU’s evening law program—though she expected ED’s clarification would help.
Kathryn Cook is currently pursuing her J.D. at Loyola Law School. When the rule was first drafted, Cook was told she was in the clear. But that changed in July.
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