Student Loan Default Divide | U.S. Adults Struggle with Literacy and Math | 2025 Reader Survey | Higher Ed Policy Update

This week, Whiteboard Advisors co-founder and Chief Advocacy Officer Anna Kimsey Edwards is filling in for Ben.

The countdown to the holidays is on.

Capitol Hill is bustling with NDAA and confirmation meetings, state policymakers are preparing for the start of legislative sessions, and educators are racing towards winter break. It seemed an improbable time for a major education event. Yet, this week’s Exchange 24, hosted by XQ Institute and the Carnegie Foundation for the Advancement of Teaching , couldn’t have been more relevant.

In a moment when the prospects of bipartisan collaboration seem bleak, the convening of hundreds of education leaders demonstrated that there is striking consensus—across the country and across the aisle—around the need to transform America’s high schools. According to a recent Gallup survey, less than half of K-12 students believe their coursework challenges them. Denise Forte of EdTrust flagged that in some cities, over half of high school students were chronically absent in 2022-23. Clearly, our high school students are disengaged.

In 2025, The Every Student Succeed Act (ESSA) will turn 10. The Trump Administration and Congress also have the opportunity to reauthorize the Higher Ed Act and WIOA, which is moving now; all three bills are overdue for a refresh. We know that states will have even greater influence in the next administration, so learning about state-level efforts that could inform greater alignment between—and innovation within—these bills was particularly valuable. Seven state chiefs, and along with other state and district cabinet leaders, were on hand to share their perspectives at Exchange 2024.

Here’s a quick rundown of Exchange24 highlights:

• Former Education Secretary Margaret Spellings joined policy veteran David Cleary for a candid conversation about the bipartisan coalition that drove No Child Left Behind nearly 25 years ago, offering important lessons for advancing education priorities in today's divided political landscape. Their insights reminded us of the critical role states play in advancing education policy at the federal level.
• We were fortunate to hear from state chiefs including Tony Thurmond of California, Kirsten Baesler of North Dakota, Director Stephen Dackin of Ohio, Nellie Tayloe Sanders of Oklahoma, Angélica Infante Green of Rhode Island, Sydnee Dickson of Utah, and Lisa Coons from Virginia, who shared the transformative work underway in their states. From competency-based education programs to computer science and cybersecurity graduation requirements.
• U.S. ED Assistant Secretary Roberto Rodriguez and I had the opportunity to facilitate a discussion with state chiefs advancing bold initiatives to redefine student success and ensure students are prepared for the careers of the future. As Commissioner Angélica Infante-Green of Rhode Island put it, “We all want the same thing—opportunity for every student.”
• Pollster Frank Luntz challenged us to move beyond education policy jargon that means little to parents, presenting research on more effective ways to communicate about student success and education “reform.” Luntz emphasized the importance of taking a fact-based approach to political conversation, “focusing on reality, not ideology.” His insights resonated deeply given what we learned from recent elections about the disconnect between policy conversations in Washington and kitchen table concerns of families.
• Perhaps most compelling were the voices of students themselves, including testimony by Raina Maiga, a senior at Purdue Polytechnic High School. Amid presentations from David Brooks encouraging “rehumanization” and raising the question of “how you assess without reducing to standardization,” Randi Weingarten, Geoffrey Canada, Denise Forte, and Eric Hanushek, it was young people's stories about the transformative power of engaging, purposeful high school experiences that brought the stakes of this work into sharpest focus.

On a personal note, I especially enjoyed hearing from Priya Parker, author of The Art of the Gathering, who grounded Exchange24 participants in how to maximize the impact of being together.

Watch out for some fine-tuning of W/A salon dinners in the year ahead… and momentum continuing to build in support of rethinking the American high school experience. Now is the time.

In this week’s edition of Notes, we round up the “Top 5 Articles of the Week.”

We’re also covering:

• Student Loan “Default Divide” Predominantly Impacts People of Color
• Chairwoman Foxx Reflects on Education Committee Leadership
• U.S. Adults Face Alarming Declines in Literacy and Numeracy

2024 Reader Survey

The year is coming to a close and we want to hear from YOU. We are asking readers to fill out this survey covering current and future education market conditions, key trends, and company priorities.

We’re looking forward to compiling and sharing the results in January!

Student Loan “Default Divide” Predominantly Impacts People of Color

The Pew Charitable Trusts released a new report on Wednesday examining the variances in student loan repayment outcomes by race and ethnicity. The report, called “The Student Loan Default Divide: Racial Inequities Play a Role,” focuses on the differing experiences of Black, Hispanic or Latino, and white borrowers.

Key Findings

• Black and Hispanic or Latino borrowers are more likely to face barriers to repayment (i.e., lower household income, employment challenges)—and therefore more likely to utilize temporary repayment relief options like deferment or forbearance—than white borrowers.
• Black borrowers are more likely to be enrolled in an income-driven repayment plan (45%) than Hispanic and Latino and white borrowers, who utilize these plans at a similar rate (32% and 31%, respectively).
• 50% of Black and 40% of Hispanic or Latino borrowers have experienced student loan default (a negative account status gained from 270 days of nonpayment), versus 29% of white borrowers.
• Borrowers of color are also more likely to default more than once (or, “redefault”). Around three-quarters of Black (74%) and Hispanic or Latino (75%) borrowers have experienced redefault, compared to 54% of white borrowers.

Important context: According to 2023 data from the U.S. Department of Education, most borrowers in default are Pell grant recipients (67%). Borrowers over the age of 50 are overrepresented; these borrowers account for 20% of all student loan borrowers, but one-third of borrowers in default. Finally—but critically—62% of borrowers in default did not obtain a credential, meaning they carry a significant debt burden without having gained a degree or certificate to enhance their economic opportunity and offset that burden. [POLITICO]

Why it matters: President Biden’s “on-ramp to repayment”—a one-year grace period to help borrowers ease back into student loan repayment post-pandemic without credit risk—expired on September 30.

In July, the U.S. Government Accountability Office (GAO) revealed that nearly 10 million borrowers are already past due—with 6 million between 91 and 120 days late—less than one year after repayment resumed post-pandemic.

What’s next: The Pew Charitable Trusts shared several policy recommendations to improve student loan repayment outcomes for at-risk borrowers and make the repayment process work better for all student loan borrowers. Read those recommendations and more in the full report.

Read the Full Report

Top 5 “What We’re Reading” Articles of the Week

Want to receive our daily summary of education industry and policy news? Sign up for What We’re Reading.

1. In a Test of Adult Know-How, America Comes Up Short [The Wall Street Journal, subscription model]
2. To fill seats, colleges flip the script with direct admissions [WGBH]
3. Forget FAFSA, says one state. We got you [The Hechinger Report]
4. Private Insurers Must Now Cover Dyslexia Testing in New York [The New York Times, subscription model]
5. Amid Explosion of School Choice, Report Spotlights the Marginalized Families Left Behind [The 74]

Chairwoman Foxx Reflects on Education Committee Leadership

Earlier this week, W/A’s Noah Sudow and Alex Davis attended a conversation with Virginia Foxx where she reflected on her past roles as both Chair and Ranking Member of the House Committee on Education and the Workforce.

Preston Cooper moderated the discussion with Dr. Foxx in which she proudly shared an overview of her recent work, including the importance of congressional oversight of the Executive Branch, the Committee’s recent scrutiny of elite colleges, including related to addressing antisemitism on campus, and, most notably, the College Cost Reduction Act (CCRA), which she noted had 150 sponsors and 55 additional commitments to vote.

CCRA is Dr. Foxx’s proposed reauthorization of the Higher Education Act, which has not been reauthorized since 2008. The bill includes provisions on a range of topics, including institutional risk-sharing, enshrining the legality of revenue sharing agreements in statute, and the collection of postsecondary data on student outcomes.

It is clear that Dr. Foxx is looking at Budget Reconciliation as a mechanism to pass elements of CCRA. Rep. Foxx highlighted that the Congressional Budget Office (CBO) estimated that the passage of CCRA would save over $180 billion dollars for the Federal government, hinting that its projected savings could mean that Congress may look to include some or all of CCRA’s provisions into Congress’ forthcoming effort to pass a budget reconciliation bill next Congress. CCRA was passed out of the Committee on Education and the Workforce on a 22-19 vote earlier this year but has not yet been brought up for a full vote on the House floor.

What’s next: Yesterday, Rep. Tim Walberg (R-MI) was appointed to succeed Rep. Foxx as Chair of the Committee. House Republican leadership voted to appoint Rep. Walberg as Chair over Rep. Burgess Owens (R-UT), who also sought the top position on the Committee. Rep. Walberg’s appointment is set to be voted on by the full GOP conference in the coming weeks.

U.S. Adults Face Alarming Declines in Literacy and Numeracy

A growing number of American adults are falling behind in literacy and numeracy, as revealed by the 2023 Program for the International Assessment of Adult Competencies (PIAAC). The findings underscore widening gaps in essential skills amid a backdrop of economic inequality and limited social mobility.

By the numbers:

• 28% of U.S. adults scored at the lowest levels of literacy in 2023, up from 19% in 2017.
• 34% scored at the lowest levels of numeracy, a rise from 29% over the same period.
• Literacy and numeracy skills in the U.S. are below the international average, ranking among the lowest-performing OECD countries.

Zoom out: The U.S. stands out for its growing gap between top and bottom performers, as higher scorers maintain their skills while others experience sharp declines. [NBC News]

• These disparities are reflected in broader economic and health outcomes. High scorers tend to earn 75% more and report better well-being than those at the bottom.

Why it matters: Adults with low skills struggle to navigate real-world tasks like comparing grocery labels or interpreting job descriptions. The widening skill gap threatens the U.S.'s competitiveness and raises concerns about social cohesion, particularly as non-native speakers and marginalized groups remain disproportionately affected. [The Economist, subscription model]

What’s next: Addressing these issues will require investment in adult education programs, workforce training, and initiatives that promote equitable access to learning opportunities. Policymakers must tackle systemic barriers that exacerbate skill disparities, from early education inequities to workplace training gaps.

The bottom line: Without intervention, declining literacy and numeracy rates risk deepening economic divides and reducing the capacity of adults to thrive in a modern workforce.

Quick Takes

FAFSA Deadline Act Signed Into Law

On Wednesday, the FAFSA Deadline Act—which passed overwhelmingly in the House (381-1) and unanimously in the Senate—was signed into law by President Joe Biden. Under the new law, the U.S. Department of Education (ED) is required to launch the FAFSA form to all students and families no later than October 1—its historic open date—and answer up to Congress if it can’t meet that deadline.

This new law comes in response to two straight years of FAFSA delays and disruptions, which has had far-reaching impacts for students and families, colleges, financial aid administrators, and counselors. Sen. Bill Cassidy (R-LA), ranking member and soon-to-be Chair of the Senate HELP committee, explained that “delays forced students to choose their college without knowing their financial aid status, or not attend college at all because they didn’t know if they could afford it.”

Relatedly, some experts and advocacy groups believe FAFSA woes are at least partially to blame for declining freshmen enrollment. According to recent data from the National Student Clearinghouse Research Center, 18-year-old freshmen enrollment is down 5% compared to last year.

Our team has been closely following FAFSA developments. Check out some of our previous coverage of this issue:

• 2025-26 FAFSA Opens Slightly Ahead of Schedule
• Three Takeaways From GAO’s Postmortem on Better FAFSA

Stop Campus Hazing Act Passes Senate

On Wednesday, the Senate passed the Stop Campus Hazing Act, which aims to curb hazing on college campuses. The bill, which also passed the House in September, has seen bipartisan support and is sponsored by Sen. Klobuchar (D-MN), Sen. Bill Cassidy (R-LA), Rep. Lucy McBath (D-GA), Rep. Jeff Duncan (R-SC).

Should the bill become law, institutions of higher education would be required to enact hazing prevention programs and openly disclose hazing cases in their annual security reports, also known as Clery Reports. The Stop Campus Hazing Act also broadens the definition of hazing and urges institutions to identify fraternities and sororities who have broken historic hazing prevention policies. [USA Today]

What’s next: The bill will now head to Biden’s desk for final approval.

Gauntlet AI Training Program Raises Eyebrows

BloomTech, formerly known as Lambda School, today announced their “Gauntlet AI” training program. This program guarantees a $200K/year, salaried AI engineering job to all who pass the entrance exam and complete the 12-week, 80-100 hours/week training program.

Guaranteed job placement is the nonpareil of vocational training programs, but concerns abound for the Gauntlet program. In addition to the program’s arduous time expectations, the aptitude test used to determine eligibility has the potential to run afoul of legal precedent for pre-employment testing, which has a complicated history. This would not be BloomTech’s first brush with the law, having previously been reprimanded and fined by the Consumer Financial Protection Bureau over student loan terms and ordered to cease operations in California by the California Bureau of Private Postsecondary Education.

People on the Move

• The Institute for Higher Education Policy (IHEP) announced three new appointments to their Board of Directors: MaryEllen McGuire, founder and president of the Postsecondary National Policy Institute; Ajita Talwalker Menon, president and CEO of Calbright College; and Denisa Gándara, associate professor of educational leadership and policy at the University of Texas at Austin.
• Saga Education is seeking a new Vice President of External Affairs. This position is remote. Apply here by December 27.
• The Carnegie Foundation for the Advancement of Teaching (Carnegie) is hiring a Director of Postsecondary Transformation. This position is remote. Apply here.

Upcoming Events and Convenings

• EdGate: The State of Learning Standards 2024, December 17 at 2 p.m. ET, Virtual
• Axios: AI+ Summit, December 17 from 1:30-7 p.m. PT, San Francisco, CA
• Apprenticeships For America: How States Are Driving the Future of Apprenticeships, December 18 from Noon-1 p.m. ET, Virtual
• Arc Network: Future of Education Technology Conference, January 14-17, Orlando, FL
• Digital Promise: AI K12 Deeper Learning Summit, February 27-March 1, Anaheim, CA
• SXSW: SXSW EDU Annual Conference, March 3-6, Austin, TX
• Education Commission of the States: 2025 National Forum on Education Policy, July 9-11, Salt Lake City, UT. Request for Proposals open until January 23.

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