College students who take out federal loans are required to receive counseling when they receive the loan and before they enter repayment, but not in between -- a source of frustration for financial aid administrators who say they are not able to advise students on whether they are overborrowing or will be able to pay back a loan in a timely manner. The Obama administration signaled this week that it was developing a plan to allow some colleges and universities to require additional loan counseling of student borrowers on their campuses. The idea is somewhat controversial among advocates for students because of concerns that creating additional burdens for low-income students could deter them from seeking the loans they need to pursue a college degree. It’s also a violation of federal law to limit an eligible student’s access to federal direct loans, except by using “professional judgment,” in which aid administrators have latitude to decide that special circumstances warrant more financial aid. The administration itself emphasized that fact in a letter to participating institutions last year.

July 14, 2016 ・ From Inside Higher Ed