Trusteeship - May/June 2020 - 6

NEWS IN BRIEF

up its scrutiny of foreign gifts at universities and colleges,
especially at institutions such as Harvard University and Yale
University. Institutions must report gifts from foreign sources

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HE U.S. DEPARTMENT OF EDUCATION has stepped

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U.S. Department of Education
Escalates Inquiry into Reporting
of Foreign Gifts and Contracts

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that are more than $250,000 to the U. S. Department of Education. Congress
created this part of the Higher Education Act in 1965, "in light of concerns
about the growing financial relationship between U.S. universities and foreign
sources," according to the U.S. Department of Education.
Some institution officials believe that Department of Education's increased
efforts are beyond what the law requires but this heightened scrutiny has led
to around $6.5 billion in foreign funds being disclosed, as reported by an Inside

Trump Allows
Borrowers to Suspend
Student Loan Payments
for Two Months

Higher Ed article on February 20. There have also been some findings that are
worrying to officials. One such finding as explained in a November 27, 2019,
letter from Reed D. Rubinstein, the principal deputy of the general counsel to the
Chairman of Homeland Security's Permanent Subcommittee on Investigations:
"The six investigated universities collectively failed to report in excess of $1.3
billion from foreign sources (including China, Qatar, and Russia) over the past
seven years despite their clear legal duty to do so under Section 117."
This finding is concerning since contracts or funds from these sources
might lead to impacts and changes with what universities are teaching their
students and what research they are conducting.

SHUTTERSTOCK/ ANNA FOMINA

6 TRUSTEESHIP  MAY. JUN. 2020

DUE TO THE COVID-19 PANDEMIC , the U.S.
Department of Education announced in March
that it will suspend federal student loan
payments for two months. Every borrower will
have their interest rates set to zero percent for
at least 60 days. The interest waiver will not
lower the payments but will give borrowers relief
for these 60 days. If they choose, they can also
suspend their payments for two months.
"Right now, everyone should be focused on
staying safe and healthy, not worrying about
their student loan balance growing," said
Department of Education Secretary Betsy DeVos
in a statement on March 20.
The payments will also be suspended for
any borrower who is delinquent for more than
31 days on their payments for the 60-day span.
In a news conference on March 20, President
Trump announced that he may decide to keep
this repayment suspension longer if necessary,
according to a March 20 CNN article.
This will not be an automatic change. The
borrowers must contact their loan servicer to
request their loan payments to be suspended for
the 60 days. The loan servicers have been directed
by the U.S. Department of Education to give
anyone a forbearance who asks.
Trusteeship - May/June 2020

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