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Higher Education Act

The Higher Education Act (HEA) is a federal law that governs the administration of federal higher education programs. Its purpose is to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education.

First passed in 1965 to ensure that every individual has access to higher education, regardless of income or zip code, the HEA governs student-aid programs, federal aid to colleges, and oversight of teacher preparation programs. It is generally scheduled for reauthorization by Congress every five years to encourage growth and change.

The HEA has been reauthorized in 1968, 1972, 1976, 1980, 1986, 1992, 1998, and 2008. Current authorization for the programs in the Higher Education Act expired at the end of 2013, but has been extended while Congress prepares changes and amendments.
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Latest Actions

Efforts to update the Higher Education Act stalled as the COVID-19 pandemic put Congressional discussions on hold. Prior to the outbreak, lawmakers were reportedly close to reaching a deal after years of failure. However, there is hope that negotiations will eventually resume in the 117th Congress.

HEA in the 116th Congress

  • Senate Action

    U.S. Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Lamar Alexander (R-TN) in September 2019 introduced a piecemeal approach to update the Higher Education Act in the 116th Congress (2019-2020). The Student Aid Improvement Act, S. 2557, included eight bipartisan bills to streamline the Federal Application for Student Aid (FAFSA), simplify financial aid award letters, expand Pell Grant eligibility for students in prisons and allow Pell to be used for short-term programs, among other changes. The proposal followed months of stalled efforts to reach a bipartisan deal for a comprehensive HEA reauthorization.

    SENATE PRESS RELEASE   BILL TEXT

  • House Action

    Democrats on the U.S. House Education and Labor Committee in October 2019 unveiled a sweeping overhaul of the federal higher education law, aiming to cut the cost of college and increase access to college for low-income and minority students. The College Affordability Act included provisions that would:

    • Include the Reverse Transfer Efficiency Act, which AACRAO strongly supports and has advocated for over the past several years
    • Create a national tuition-free community college through a federal-state partnership model where the federal government contributes a per student amount at least 75 percent of the average resident tuition for public community colleges and states contribute 25 percent
    • Increase the maximum Pell Grant award by $500 and permanently index the award to inflation
    • Simplify FAFSA, including an automatic zero EFC for recipients of means-tested benefits
    • Create the Federal Direct Perkins Loan Program to provide an additional source of borrowing for undergraduates and graduates
    • Allow Deferred Action for Childhood Arrivals (DACA) and certain other undocumented students access to federal student aid
    • Repeal the federal "student unit record" ban and require the Education Department to develop a system that uses student-level data to evaluate postsecondary outcomes
    • Change the 90/10 rule ratio (the percentage cap of Title IV aid an institution may receive) to 85/15 and expand it to include all educational programs
    • Require the Education Department to establish a Borrower Defense to Repayment process to discharge the federal loans of students who were defrauded by their colleges
    • Require the Education Department to establish a compliance standard that includes a debt-to-earnings threshold for training programs that are statutorily required to lead to gainful employment
    • Prohibit the Education Department from issuing or enforcing the proposed Title IX rules that the Trump administration published in November 2018, among other things.
     

    The College Affordability Act shared some key provisions with the Senate's package of bipartisan bills. Both proposals aimed to streamline FAFSA, simplify financial aid award letters, and expand Pell eligibility for incarcerated students and short-term programs—although the House bill excluded for-profit colleges.

    However, the House measure did not gain any traction in the 116th Congress's Republican-controlled Senate.

    HOUSE PRESS RELEASE BILL TEXT OVERVIEW OF COLLEGE AFFORDABILITY ACT

     

UPDATES

Alexander Unveils Narrow Package to Update HEA

Oct 2, 2019, 16:26 PM
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Summary : The proposal follows months of stalled efforts to reach a bipartisan deal for a comprehensive HEA reauthorization and illustrates Sen. Alexander's urgency to pass major higher education legislation before he retires after next year.
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U.S. Senator Lamar Alexander (R-TN), chairman of the chamber's education committee, released a package of eight bipartisan bills to narrowly update the Higher Education Act (HEA). 

The legislation fleshes out a proposal the senator previously outlined when he blocked a bill to extend funding for minority-serving colleges and universities, Inside Higher Ed reported. The Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act, which the House approved last Tuesday, would provide a two-year extension of the $255 million in annual funding for historically black colleges and universities and other minority-serving institutions that expired at the end of September. In its place, Alexander offered a deal that would attach long-term funding for those colleges to several measures with bipartisan support in the Senate.

The Student Aid Improvement Act would streamline the Federal Application for Student Aid (FAFSA), simplify financial aid award letters, expand Pell Grant eligibility for students in prisons and allow Pell to be used for short-term programs, among other changes. The package would be paid for by allowing student borrowers on income-driven repayment plans to pay up to 10 percent of their discretionary income, even if the amount exceeds what they would owe under a standard repayment plan.

The legislation notably does not include the College Transparency Act, which would create a federal student-level data system to track college outcomes. Sen. Alexander, who recently signed on as a co-sponsor of the bill, said on the Senate floor that the measure should be part of the package, however.

The proposal follows months of stalled efforts to reach a bipartisan deal for a comprehensive HEA reauthorization and illustrates Sen. Alexander's urgency to pass major higher education legislation before he retires after next year. However, Sen. Patty Murray (D-WA), ranking member on the education committee has insisted that lawmakers pass the FUTURE Act and then work on a comprehensive HEA reauthorization, reported Inside Higher Ed. Further, House Democrats are unlikely to take up the legislation even if it manages to pass the Senate.

Related Link

Inside Higher Ed

https://www.insidehighered.com/quicktakes/2019/09/27/alexander-releases-narrow-higher-ed-package

Inside Higher Ed

https://www.insidehighered.com/quicktakes/2019/09/30/alexander-backs-college-transparency-act

 
Michelle Mott
Categories :
  • Advocacy
  • Financial Aid and FAFSA
  • Higher Education Act
Tags :
  • hbcu
  • IBR
  • MSI
  • pell grant
  • unit record data system
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