SCHNEIDER INTRODUCES BIPARTISAN BILL TO HELP STUDENTS ACCESS FEDERAL STUDENT LOANS WHEN STUDYING ABROAD
WASHINGTON – Rep. Brad Schneider (IL-10) and Rep. Lloyd Smucker (PA-11), members of the House Ways and Means Committee, introduced the bipartisan Providing Distance Education for Foreign Institutions Act, a bill to ensure American students studying at universities abroad can continue to access federal student loans.
“We need to help American students already weighed down by record-setting student debt and lift the barriers that stand in the way of accessing an international degree,” said Rep Schneider. “Students who pursue an international education gain skills that equip them to thrive in a global economy, and they deserve the same support they receive at home. Universities routinely offer a portion of their classes online in the US and abroad, but only students who study internationally are barred from receiving financial aid for such programs. This bill closes that gap.”
American students studying at institutions of higher education that participate in the Title IV loan program can finance full degrees abroad. However, the 400 international schools that participate in the loan program are currently prohibited from participating in Title IV if any part of their program is offered online. During the COVID-19 pandemic this prohibition was waived but has since gone back into effect, leaving American students at risk of losing their ability to finance their degrees as most colleges and universities have widened their courses to routinely offer programs online.
“Students studying abroad shouldn’t risk losing federal aid just because some of their coursework is remote. I thank Rep. Schneider for joining me on this bipartisan fix, and urge my colleagues to support this commonsense legislation,” said Rep. Smucker.
Due to this prohibition, schools are forced to make extreme and costly accommodations – offering in person programs only for American students using financial aid. Without amendment, these schools could completely opt out of participating in the Title IV loan program and American students will be left without a way to finance their degrees abroad.
“The International Education Council (IEC) applauds the introduction of The Providing Distance Education for Foreign institutions Act and commends Representatives Scheider and Smucker on the introduction of the bill. The total online prohibition has shut the door on American students who need to finance their degree while physically attending campuses abroad. American youth should be able to choose their location and program of study, given the high-quality-for-value and unique offerings at highly reputable international schools. This measure will continue to allow those Americans to use their federal loan funds to help obtain that experience as the delivery of education evolves,” said IEC Executive Director Robert Moran. “We are grateful to Representatives Smucker and Schneider for supporting American students and recognizing the need for this legislation. American financial aid provides students with the ability to choose their institution. Participation by colleges and universities outside the United States in the Title IV Direct Loan program vastly expands opportunities for students who want to obtain their postsecondary education overseas. These opportunities provide students with a wealth of global awareness and diplomatic skillsets they bring home to the United States.”
You can find the bill text here.
###