News from ED today: Final regs on the TEACH grant were passed. It’s a little better than before, since students will now apparently sign a “service agreement and promise to repay” that explains “the service obligation that students must carry out for the TEACH Grant award not to convert to a Federal Direct Unsubsidized Loan.”
Just one question: Why call it a grant? Why not a loan-forgiveness program? This is a grant that for 80% of students will become a loan. And why not, at least, a subsidized loan?
Apparently, because ED isn’t allowed to change the name, purpose or structure of the program, all of which were dictated by the HEA. I suppose they did the best they could….
The only other good news is that the regs include an amendment which makes institutional participation in the program voluntary. Now the burden is shifted to schools to opt out of a program that would- on the face of it- appear to provide needed money to students. A tough call, but one that schools might consider making in the interest of their students. Most won’t get past the word “GRANT.”