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The Abstract
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> By Stephanie DiCapua Getman, Arnold Ventures
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*Editor's note: The Abstract will take a break next week. We'll be back in your inbox Oct. 21.
This week, Communications Manager Torie Ludwin offers an update on the Biden administration's student debt relief plan:
What looks so simple rarely is. In the broadest strokes, Biden’s student debt cancellation plan is straightforward — $10,000 for borrowers under an income cap, $20,000 for Pell Grant recipients. But now that the federal student loan cancellation application will open any day now, things are getting a little more complicated.
The cost of the program, anywhere from $379 billion to $441 billion, depends in part on how many students take the steps to get loan forgiveness. Historically, take-up rates for relief programs vary widely.
There are some questions still about who will benefit. The Federal Reserve Bank of New York’s analysis says the plan will eliminate federally held balances for 40.5% of federal borrowers, forgiving 31.1% of the total outstanding federal student loan balance. Because Pell grant recipients get double the relief ($20,000 instead of $10,000), the analysis concludes that more forgiveness dollars will go toward lower- and middle-income neighborhoods than those in higher-income communities. However, Adam Looney at the Brookings Institution sees otherwise, and questions whether the original goals of the program are being addressed.
Others see the relief plan as detrimental and are turning to the courts as a result. Frank Garrison of the Libertarian-leaning Pacific Legal Foundation brought a lawsuit against the Education Department saying that the debt relief money was harmful and would leave him worse off due to tax consequences; he wanted the debt relief plan blocked as a result (a federal judge declined, and students may choose to opt out of the relief program).
Six Republican Attorneys General also filed a lawsuit saying that debt cancellation would hurt their states, in part due to an anticipated drop in income from private student loan servicing, should students consolidate Federal Family Education Loans (FFEL) into the Direct Loan program, which is part of federal student loan forgiveness.
In response, the Education Department announced that it would exclude FFEL from the loan forgiveness program. That change could help head off potential legal claims from FFEL lenders against the policy; it also means about 800,000 of the more than 40 million otherwise eligible borrowers will not qualify for relief, and about 1.5 million FFEL borrowers who also have Direct Loans could get less relief.
With foresight, the White House is doubling down on efforts to prevent scammers from getting into the relief system. The Federal Trade Commission has issued two consumer warnings about student loan scams since the August announcement, and the FTC, Education Department, and Consumer Financial Protection Bureau convene today to discuss enforcement as well as scam prevention. (Arizona is suing the Education Department in part because of the added law enforcement costs it anticipates to put toward consumer protection laws.)
What happens after the Education Department doles out all this loan forgiveness? Well, Congress better make sure we don’t have to do it again. As Laura Arnold outlined in her op-ed that kicked off a series of hear-hears in outlets across the country, policymakers must pass laws that hold schools accountable for providing a quality education to students.
On the Hill, both sides of the aisle are putting forth plans for reform, and we at Arnold Ventures are cheering them on to work together to help students get a valuable education with the support they need at a cost they can afford. While simple ideas are sometimes complex to execute, we at Arnold Ventures are quite comfortable with the complex.
— Torie Ludwin, communications manager
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Illinois Prepares for
Historic Abolition of Cash Bail
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Illinois is gearing up to eliminate cash bail through a new law that takes effect in January 2023. The Pretrial Fairness Act, which passed last year, contains a range of provisions to ensure that people are not held pretrial unnecessarily.
What’s Happening: For decades, Illinois has required people to pay a cash bond in order to secure their release while they await trial. Now counties, judges, state’s attorneys, reformers, and victim advocates are working together to pilot and implement a system that limits pretrial incarceration to people at high risk of flight or causing harm, requires police to give tickets for some low-level offenses instead of making arrests, and eliminates incarceration for misdemeanor arrests, among other measures.
Why it Matters: The cash bail system detains thousands of people convicted of no crime simply because they lack money to pay for their release, resulting in wealth-based detention that disproportionately affects poor people of color. The new system will create greater equity in pretrial detention while preserving measures to promote public safety.
What’s Next: Despite pushback from critics, who falsely claim the bill will cause crime spikes, Illinois lawmakers and advocates are holding the line. The new system will be unveiled early next year.
Read the story>
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Getting “Down and Dirty"
on the Policy Side of Higher Ed
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AV Fellow Clare McCann is no stranger to thorny policy about American schools. After stints at the Education Department and New America, she recently joined Arnold Ventures to think about how higher ed can better serve students, families, and the public. Whether at work, curled up with a book in Maine, or en route to an international zoo, McCann’s policy mind keeps moving; she is a person whose goals are deeply rooted in a commitment to broadening opportunities for all students.
What’s Happening: The Biden administration canceled up to $20,000 of student debt, helping many students, but persistent problems still plague American higher ed. We spoke to McCann about laws and regulations that could address the underlying issues.
Why it Matters: Students are being asked to take on more debt than they can afford to repay. Grad school programs often cost more than the earnings they can realistically yield, and many for-profit schools leave students with burdensome loan debt for poor-performing certificate programs. “Too many people are not getting value out of their higher education,” McCann says. Congress needs to hold institutions accountable to provide a quality education.
What’s Next: Policymakers on both sides of the aisle are coming forward with proposals to reform higher education, suggesting progress may soon follow.
Read the story >
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How Medicare Price Negotiations
Finally Became Law
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What's happening: Key provisions of the Inflation Reduction Act are moving forward, including a reform that requires manufacturers to pay rebates to Medicare Part D when drug prices exceed inflation. The Part D program provides outpatient prescription drugs to older adults and people with disabilities, covering nearly 50 million Medicare beneficiaries. Because the inflation penalty will slow growth of list prices over time, many patients in Part D will, over time, see their out-of-pocket costs reduced.
Why it matters: Efforts to lower prescription drug prices have met fierce opposition from the pharmaceutical industry for decades. What's changed? Research played a major role in getting a slate of drug pricing reforms over finish line, including reforms to lower prescription drug prices by allowing Medicare to negotiate the prices of some of its most expensive medications. Mark E. Miller, the executive vice president of health care for Arnold Ventures, dives deep in a recent podcast with Relentless Health Value.
What's next: Arnold Ventures is committed to lowering drug prices to improve patient access to affordable medicines by addressing patent abuses and anticompetitive behaviors, market distortions, and the high and unjustified launch prices of prescription drugs. For more, read AV's Drug Pricing Fact Sheet and our issue brief.
Read the story>
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Criminal Justice
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Keri Blakinger's harrowing essay on the "human rights crisis" at the overcrowded Harris County jail all but demands that the public and policymakers start to pay attention.
Related: Two die at Harris County jail as critics blame unsafe conditions for the highest death toll in years, the Houston Chronicle reports.
- The Chronicle of Philanthropy quotes AV's Director of Criminal Justice Asheley Van Ness in its story about non-profits and charities supporting gun policy research and advocacy.
- Even after the Bruen decision, there is still room for research to inform court decisions about gun policy, write Rosanna Smart, an economist at RAND Corporation, Darrell A.H. Miller, a professor of law at Duke University, and Andrew R. Morral, director of RAND's Gun Policy in America initiative, in a Newsweek op-ed.
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In a Fox News op-ed, former U.S. Rep. Doug Collins explains how conservatives can and should lead on bail reform.
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To prevent the spread of COVID-19, the Justice Department released more than 11,000 people from federal prison to home confinement during the pandemic. Only 17 committed new offenses. Only one was violent. The lesson? We should be releasing more people from prison, writes Molly Gill, vice president of policy for Families Against Mandatory Minimums, in the Washington Post.
Charitable Giving Reform
- How the wealthy use a loophole to reap tax breaks — and delay giving away charitable dollars, via Bloomberg.
Health Care
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If health care affordability in the U.S. were a student, it would be flunking, new polling from Gallup and West Health suggests. Seventy-five percent of Americans graded affordability as a D or F; 1 in 3 Americans are concerned about their ability to pay for health care in the next year; half of Americans worry about affording care as they age; and 2 in 3 are concerned Medicare won’t exist when they need it.
- Massachusetts has told Mass General Brigham — one of the state’s dominant health systems with the highest prices — to get its spending in line. In the latest turn of events, regulators overseeing the state's efforts to rein in health care costs approved the system’s plan to slash $128 million in annual costs — including $90 million annually in price reductions.
Related: Massachusetts holding a major health system accountable for its role driving state health care spending higher is a first-of-its kind move. More states are following suit.
Higher Education
- IHEP’s latest case study, Student Success is in the DNA of Northern Arizona University, summarizes key strategies NAU is leveraging to champion the Equitable Value Movement and improve outcomes for students.
- The Washington Post reports on the Wisconsin Institute for Law and Liberty’s claims that President Biden’s student loan cancellation plan violates federal law by attempting to reduce the racial wealth gap and aid Black borrowers, which the group considers an “improper racial motive.”
- Higher Ed Dive gives a state-by-state breakdown and analysis of where student borrowers live who will receive forgiveness.
- In the Chicago Sun-Times, Senator Dick Durbin points out that students defrauded by for-profit colleges, often low-income and/or first generation students, will be some of the biggest beneficiaries of the student loan forgiveness program.
Contraceptive Choice and Access
- Biden speaks out against the University of Idaho’s guidance against distributing contraception on campus, in The Hill.
- Fortune reports on the FDA’s consideration of the first over-the-counter birth control pill in the U.S.
Evidence-Based Policy
Journalism
- In the latest example of impactful journalism produced by nonprofit news outlets supported by AV: After the Hechinger Report revealed the practice of transcript withholding by colleges, the Consumer Financial Protection Bureau ruled that colleges cannot withhold transcripts to force students to repay the loans they provided directly to students.
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"The Box: Minds Lost in Solitary Confinement," is an intense, immersive view into the psychologically damaging experience of solitary confinement, told through the stories of three survivors. The camera is never far from its subject in this short documentary by James Burns and Shal Ngo — forcing the viewer into the same oppressive, cramped, and suffocating spaces as those locked in solitude. It is unsettling and effective.
Burns is also one of the film’s narrators. He was charged as an adult at age 15 and sentenced to 12 years in prison: "My story isn't unique. There's many kids growing up in environments that aren't safe, that aren't conducive to success, and they fall into the narrative that society has given to them. And that's the way I saw myself."
Burns, along with Five Mualimm-ak and Pamela Winn, describe the unpredictable violence of prison life, and the minor infractions that can land someone in solitary: having too many pencils or too much toilet paper, talking back to officers, talking too much at all. Once there, in a cell the size of a parking space, all sense of time and hope of human connection is lost. “Every mistake that you make is gonna get you more time in the box. And the more time you get in the box, the more mistakes you're gonna make.”
Burns spent 11 consecutive months in solitary confinement — at age 16.
Related: A staggering number of people are held in isolation for months, years, even decades, and many will leave broken in mind and body. Some states are realizing they’ve gone too far.
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- On Tuesday, October 18, 2022, at 2 p.m. ET, Arnold Ventures’ Higher Education and Evidence-Based Policy initiatives will host a 60-minute Zoom webinar for prospective applicants seeking grant funding through our joint request for proposals (RFP): rigorous impact evaluations of programs and practices (“interventions”) to promote college success in the United States. Register here.
- On Wednesday, Oct. 19, at 1 p.m. PT / 4 p.m. ET, join a webinar on charitable giving reform: "Where Has All the Money Gone? Why Food Banks and other Basic Needs Nonprofits Should Support Philanthropic Policy Change" will explore why more than a trillion dollars in charitable “gifts” are locked up in private foundations and donor-advised funds (DAFs), rather than being used to support our nation’s charities. Speakers include Susannah Morgan of Oregon Food Bank; Ray Madoff of Boston College Law School Forum on Philanthropy and the Public Good; Vu Le of Nonprofit AF; and Chuck Collins of Program on Inequality and the Common Good at the Institute for Policy Studies. Register here.
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I love this appreciation of Loretta Lynn, who died this week at 90 and paved the way for so many women in country music: "Loretta Lynn Was Fearless."
Check out these 16 stunning images from The Nature Conservancy’s annual photo contest.
Do you agree with this list of television's 100 greatest shows of all time?
"Tu stultus es. You are dumb." That's how satirical website The Onion opens its legal argument in an amicus brief defending the First Amendment protection of satire, which may be the funniest thing ever filed before the U.S. Supreme Court.
Get out the vote — for Fat Bear Week, a contest that highlights the transition bears make as they face winter and pays homage to survival. Through Oct. 11, voters can gawk at 12 brown bears at their home in Katmai National Park in Alaska on web cams or ponder the bears' hulk online and decide which bears from the official bracket advance. Details here.
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