Lance's Corner

GAO Issues Report on Federal Student Loan Repayments

Aug 14, 2024

Per the notice below, the United States Government Accountability Office (GAO) has issued a report on federal student loan repayments.

When the Student Loan Payment Pause Ended, Did Borrowers Pay?

Student debt is one of the fastest-growing forms of household debt.  More than 43 million people had federal student loans, totaling about $1.5 trillion at the start of 2024.  During COVID-19, student loan borrowers received a reprieve when payments on their loans were paused for more than 3 years.  But when payments restarted in October 2023, there was concern about potentially high rates of delinquency after such a prolonged period of postponed payments.  So, what happened when payments came due?  Today’s WatchBlog post looks at our new report for Congress about what happened when the student loan payment pause ended.
Photo showing a graduation cap and diploma on a stack of paper money

Many borrowers did not begin to pay when the pause ended

In our new report, we looked at the status of federal student loans as of January 2024—just a few months after the payment pause ended and loans came due.

Current on payments.  About 17.8 million borrowers were in good standing on their loans.  About 4.5 million of the borrowers in good standing had scheduled payments of $0 on income-driven repayment plans.  These plans base monthly payments on a borrower’s income and family size and offer forgiveness of any remaining loan balance at the end of the repayment period.  Monthly payments can be as low as $0 for some borrowers and still count toward forgiveness.

Past-due on payments.  Nearly 10 million borrowers were past due on their loan payments as of January 31.  The Department of Education typically reports borrowers as delinquent to credit reporting agencies when they become 90 days past due on their loans.  But the department is forgoing this practice as part of its temporary relief program known as the “on ramp.”  As of January 31, Education reported that nearly 6.7 million borrowers had been shielded from negative credit reporting since monthly payments resumed.

In forbearance or deferment.  Another about 6 million borrowers did not need to make payment on their loans.  About 2.5 million borrowers were in forbearance—a status that allows borrowers experiencing financial struggles to temporarily postpone or reduce monthly payments.  About 3.3 million borrowers were in deferment, which allows borrowers to temporarily postpone payments if they are returning to school, in active-duty military service, unemployed, or experiencing economic hardship.

Pie chart showing the repayment status of federal student loans as of January 2024--53% were current on payments, 29% were past due, 10% in deferment, 7% in forbearance

Temporary relief programs and repayment plans offered

When the payment pause ended, Education established temporary relief options for some borrowers to help them resume payments.  As discussed above, some borrowers were shielded from negative credit reporting through the “on ramp.”  Education also implemented Fresh Start, which allows borrowers to more easily restore defaulted loans to good standing.  Borrowers with defaulted loans can learn more about Fresh Start on Education’s website.  Both Fresh Start and the “on-ramp” are scheduled to end September 30.

Repayment plans.  Should borrowers need help making payments, Education offers four income-driven repayment plans.  As of January, the most popular plan was the newest option—Saving on a Valuable Education (SAVE).  About 25% of borrowers were enrolled in SAVE.  In July, a federal appeals court granted an emergency motion for a stay that temporarily prohibits Education from implementing the SAVE plan.  Since then, Education announced that borrowers enrolled in the SAVE plan would be placed in an interest-free forbearance while litigation was ongoing.

What are the repayment plans?  The differences between the four plans include the percentage and definition of income used to calculate monthly payments amounts and the years required for repayment.

  • Saving on a Valuable Education (SAVE)—This plan requires payments that are generally 10% of your discretionary income.  The remaining unpaid balance of loans is forgiven up to 20 or 25 years.  The SAVE plan generally offers borrowers lower payments because Education sets its payments based on a smaller portion of borrowers’ income than other plans.  Also, borrowers who make a full monthly payment are not charged any remaining accrued interest that month.

  • Income-Contingent Repayment (ICR)—Payments are 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income.  The remaining unpaid balance of loans is forgiven after 25 years.

  • Income-Based Repayment (IBR)—Depending on when you first took out loans (before or on or after July 1, 2014), payments are generally 10% or 15% of the borrower’s discretionary income, but never more than the 10-year Standard repayment plan amount.  The remaining unpaid balance of loans is forgiven after 20 or 25 years.

  • Pay As You Earn (PAYE)—Payments are generally 10% of your discretionary income, but never more than the 10-year Standard repayment plan amount.  The remaining unpaid balance of loans is forgiven after 20 years.

You can find out more about which plan is the best fit for you and how to apply for a plan by visiting Education’s website.  Learn more about our work on student loans by checking out our latest report.

GAO Report on Federal Student Loan Repayments: https://www.gao.gov/assets/gao-24-107150.pdf.

GAO Highlights on Federal Student Loan Repayments: https://www.gao.gov/products/gao-24-107150?utm_campaign=usgao_email&utm_content=daybook&utm_medium=email&utm_source=govdelivery.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc