Taking it to the courts:
"We don't want to sue the Obama administration," Taylor said, "but we have to remember that it was Thurgood Marshall who challenged the Board of Education [in order to end segregation]. You have to be willing to tell the government when their position is wrong and we are willing to take this issue on as Thurgood Marshall would."
Taylor hopes ED can be persuaded to reverse the decision, reverting its credit requirements for PLUS loans to previous standards.
As a stopgap measure, he suggests that any student currently in school who has received a PLUS loan be automatically preapproved by ED for continuing loans until the student graduates.
"What sense does it make to have a student in school, taking on debt, then not being able to graduate," Taylor said. "That will only lead to significant erosion of our graduation rates, due to dropouts, and ultimately higher default rates. A true grandfathering will solve the immediate problem and give us three or four years to figure this out."
In the coming months, Taylor said he will continue to seek a compromise with ED administrators. "I will show up tomorrow if [Secretary Duncan] is ready to meet."
TMCF has also elicited the support of the Congressional Black Caucus and other members of Congress to address the ED policy changes regarding PLUS loans.
If by mid-July 2013 there is no sustainable resolution, the last remaining course of action is to sue, Taylor said.