NACUBO On Your Side: August 17–September 6, 2022
9/06/2022
As things move quickly in Washington, DC, NACUBO is your constant advocate in action. NACUBO On Your Side covers important legislative and agency activity NACUBO staff are tracking, what we’re currently advocating for, and how you can take action with us.
Here are the issues we are tracking and advocating for this week.
On the Hill
Inflation Reduction Act Becomes LawOn August 16, President Joe Biden signed the Inflation Reduction Act into law. NACUBO will continue to monitor for further guidance on provisions that could affect higher education institutions, including the significant changes made to the 179D tax deduction for energy efficient commercial construction and expanded tax credits for electric vehicles.
Agency Action
President Biden Announces Broad Debt Cancellation
Following months of speculation, President Joe Biden announced that his administration would cancel $10,000 of outstanding student loan debt for borrowers earning under $125,000 and $20,000 for borrowers who received a Pell Grant. He also announced a final extension of the repayment pause, through December 31, and the creation of a new income-driven repayment plan.
IRS Publishes Guidance on Accessing Exempt Organization Returns
The IRS published final regulations, providing guidance to states wanting to obtain exempt organization returns or return information, including exempt status denials and revocations. The final rules reflect changes made by the Pension Protection Act of 2006 allowing the IRS to share additional information to certain state officials for the purpose of administering state laws governing exempt organizations.
Biden Administration Reminds Borrowers of Upcoming PLSF Waiver Deadline
A limited waiver for the Public Service Loan Forgiveness Program is set to expire on October 31. This waiver allows borrowers to gain additional PSLF credit, even if they had been told previously that they had the wrong loan type or the wrong repayment plan. Colleges and universities are encouraged to promote the waiver to their employees. Additionally, the White House has created a PSLF website with a simple three-step eligibility tool for borrowers.
DHS Publishes Final DACA Rule
The Department of Homeland Security (DHS) released a final rule codifying the Deferred Action for Childhood Arrivals (DACA) policy. The rule, which stays true to the one proposed last year, helps shore up the policy, which has faced numerous legal challenges since its inception in an Obama administration memo. The rule is set to go into effect on October 31, but DHS is not accepting new applications at this time due to an injunction that has been in place since July 16, 2021.
Advocacy
NACUBO Weighs In on CA Debt Collection Licensing Regulations
On August 29, NACUBO submitted comments to the California Department of Financial Protection and Innovation on its proposed changes to regulations governing the Debt Collection Licensing Act. The proposed rule included a carve-out for public institutions, and NACUBO requested a similar exemption for private, nonprofit colleges and universities.
Higher Education Community Comments on Targeted Debt Relief NPRM
NACUBO joined 25 other higher education associations in a letter led by the American Council on Education offering comments to ED on its proposed rulemaking on targeted forgiveness programs. The letter offers general support for the department’s proposed changes to borrower defense, public service loan forgiveness, and closed school discharge, and it offers improvements in each area.
Take Action
Register Now for NACUBO’s September Washington UpdateNACUBO’s next quarterly Washington Update will take place on Tuesday, Sept. 16 from 2–2:30 pm ET. The webcast is free for members, and you can send questions in advance to advocacy@nacubo.org.
