The Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications. CRS Report R44737, Version 11. Updated
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| Title: | The Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications. CRS Report R44737, Version 11. Updated |
|---|---|
| Language: | English |
| Authors: | Hegji, Alexandra, Library of Congress, Congressional Research Service (CRS) |
| Source: | Congressional Research Service. 2020. |
| Availability: | Congressional Research Service. Web site: https://crsreports.congress.gov/ |
| Peer Reviewed: | N |
| Page Count: | 31 |
| Publication Date: | 2020 |
| Intended Audience: | Policymakers |
| Document Type: | Reports - Descriptive |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | School Closing, Colleges, College Students, Loan Repayment, Paying for College, Student Loan Programs, Transfer Programs, Taxes, Tax Credits, Grants, Federal Aid, Veterans, Federal Legislation, Debt (Financial) |
| Laws, Policies and Program Identifiers: | Pell Grant Program, G I Bill |
| Abstract: | In academic year (AY) 2018-2019, approximately 6,400 institutions of higher education (IHEs), enrolling about 26.5 million postsecondary education students, participated in the federal student aid programs authorized under Title IV of the Higher Education Act of 1965 (HEA; P.L. 89-329, as amended). These IHEs ranged in sector, size, and educational programs offered. Most of these IHEs operate from year to year with few severe financial or operational concerns; however, each year, a few do face such concerns, which may cause them to cease or significantly curtail operations. The recent permanent closure of multiple large, proprietary (or private, for-profit) IHEs has brought into focus the extent to which a postsecondary student's education may be disrupted by a school closure. This report provides an explanation of the options a postsecondary student may pursue in the event the IHE he or she attends permanently closes, any financial relief that may be available to such students, and other practical implications for students following a school's closure. First, this report describes the academic options available to such students, such as participating in a teach-out or transferring to a new IHE. Next, it discusses issues related to financing a postsecondary education, including the extent to which borrowers may have any loans borrowed to finance educational expenses discharged due to a school closure and whether future financial assistance, including federal student loans, Pell Grants, and GI Bill educational benefits, may be available to students should they decide to continue their postsecondary education at another IHE. This report then describes additional relief that may be available to students who attended IHEs that closed, such as the potential to have tuition that has been paid reimbursed through a state tuition recovery fund. Finally, this report describes some potential income tax implications for students when their IHE has closed, including the extent to which they may incur a federal income tax liability for loans discharged and whether higher education tax credits remain available to them in future years. |
| Abstractor: | ERIC |
| Entry Date: | 2021 |
| Accession Number: | ED610731 |
| Database: | ERIC |
| FullText | Text: Availability: 0 CustomLinks: – Url: https://eric.ed.gov/contentdelivery/servlet/ERICServlet?accno=ED610731 Name: ERIC Full Text Category: fullText Text: Full Text from ERIC |
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| Header | DbId: eric DbLabel: ERIC An: ED610731 AccessLevel: 3 PubType: Report PubTypeId: report PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: The Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications. CRS Report R44737, Version 11. Updated – Name: Language Label: Language Group: Lang Data: English – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Hegji%2C+Alexandra%22">Hegji, Alexandra</searchLink><br /><searchLink fieldCode="AR" term="%22Library+of+Congress%2C+Congressional+Research+Service+%28CRS%29%22">Library of Congress, Congressional Research Service (CRS)</searchLink> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="SO" term="%22Congressional+Research+Service%22"><i>Congressional Research Service</i></searchLink>. 2020. – Name: Avail Label: Availability Group: Avail Data: Congressional Research Service. Web site: https://crsreports.congress.gov/ – Name: PeerReviewed Label: Peer Reviewed Group: SrcInfo Data: N – Name: Pages Label: Page Count Group: Src Data: 31 – Name: DatePubCY Label: Publication Date Group: Date Data: 2020 – Name: Audience Label: Intended Audience Group: Audnce Data: Policymakers – Name: TypeDocument Label: Document Type Group: TypDoc Data: Reports - Descriptive – Name: Audience Label: Education Level Group: Audnce Data: <searchLink fieldCode="EL" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="EL" term="%22Postsecondary+Education%22">Postsecondary Education</searchLink> – Name: Subject Label: Descriptors Group: Su Data: <searchLink fieldCode="DE" term="%22School+Closing%22">School Closing</searchLink><br /><searchLink fieldCode="DE" term="%22Colleges%22">Colleges</searchLink><br /><searchLink fieldCode="DE" term="%22College+Students%22">College Students</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+Repayment%22">Loan Repayment</searchLink><br /><searchLink fieldCode="DE" term="%22Paying+for+College%22">Paying for College</searchLink><br /><searchLink fieldCode="DE" term="%22Student+Loan+Programs%22">Student Loan Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Transfer+Programs%22">Transfer Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Taxes%22">Taxes</searchLink><br /><searchLink fieldCode="DE" term="%22Tax+Credits%22">Tax Credits</searchLink><br /><searchLink fieldCode="DE" term="%22Grants%22">Grants</searchLink><br /><searchLink fieldCode="DE" term="%22Federal+Aid%22">Federal Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Veterans%22">Veterans</searchLink><br /><searchLink fieldCode="DE" term="%22Federal+Legislation%22">Federal Legislation</searchLink><br /><searchLink fieldCode="DE" term="%22Debt+%28Financial%29%22">Debt (Financial)</searchLink> – Name: SubjectThesaurus Label: Laws, Policies and Program Identifiers Group: Su Data: <searchLink fieldCode="SU" term="%22Pell+Grant+Program%22">Pell Grant Program</searchLink><br /><searchLink fieldCode="SU" term="%22G+I+Bill%22">G I Bill</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: In academic year (AY) 2018-2019, approximately 6,400 institutions of higher education (IHEs), enrolling about 26.5 million postsecondary education students, participated in the federal student aid programs authorized under Title IV of the Higher Education Act of 1965 (HEA; P.L. 89-329, as amended). These IHEs ranged in sector, size, and educational programs offered. Most of these IHEs operate from year to year with few severe financial or operational concerns; however, each year, a few do face such concerns, which may cause them to cease or significantly curtail operations. The recent permanent closure of multiple large, proprietary (or private, for-profit) IHEs has brought into focus the extent to which a postsecondary student's education may be disrupted by a school closure. This report provides an explanation of the options a postsecondary student may pursue in the event the IHE he or she attends permanently closes, any financial relief that may be available to such students, and other practical implications for students following a school's closure. First, this report describes the academic options available to such students, such as participating in a teach-out or transferring to a new IHE. Next, it discusses issues related to financing a postsecondary education, including the extent to which borrowers may have any loans borrowed to finance educational expenses discharged due to a school closure and whether future financial assistance, including federal student loans, Pell Grants, and GI Bill educational benefits, may be available to students should they decide to continue their postsecondary education at another IHE. This report then describes additional relief that may be available to students who attended IHEs that closed, such as the potential to have tuition that has been paid reimbursed through a state tuition recovery fund. Finally, this report describes some potential income tax implications for students when their IHE has closed, including the extent to which they may incur a federal income tax liability for loans discharged and whether higher education tax credits remain available to them in future years. – Name: AbstractInfo Label: Abstractor Group: Ab Data: ERIC – Name: DateEntry Label: Entry Date Group: Date Data: 2021 – Name: AN Label: Accession Number Group: ID Data: ED610731 |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED610731 |
| RecordInfo | BibRecord: BibEntity: Languages: – Text: English PhysicalDescription: Pagination: PageCount: 31 Subjects: – SubjectFull: School Closing Type: general – SubjectFull: Colleges Type: general – SubjectFull: College Students Type: general – SubjectFull: Loan Repayment Type: general – SubjectFull: Paying for College Type: general – SubjectFull: Student Loan Programs Type: general – SubjectFull: Transfer Programs Type: general – SubjectFull: Taxes Type: general – SubjectFull: Tax Credits Type: general – SubjectFull: Grants Type: general – SubjectFull: Federal Aid Type: general – SubjectFull: Veterans Type: general – SubjectFull: Federal Legislation Type: general – SubjectFull: Debt (Financial) Type: general – SubjectFull: Pell Grant Program Type: general – SubjectFull: G I Bill Type: general Titles: – TitleFull: The Closure of Institutions of Higher Education: Student Options, Borrower Relief, and Other Implications. CRS Report R44737, Version 11. Updated Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Library of Congress, Congressional Research Service (CRS) – PersonEntity: Name: NameFull: Hegji, Alexandra IsPartOfRelationships: – BibEntity: Dates: – D: 17 M: 11 Type: published Y: 2020 Titles: – TitleFull: Congressional Research Service Type: main |
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