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

Texas to Mandate FAFSA Completion

Jul 10, 2019, 15:46 PM
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Summary : Texas will become the second state to require high school seniors to complete the Free Application for Federal Student Aid before graduating.
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Beginning with the 2020-21 academic year, Texas will require high school seniors to complete the Free Application for Federal Student Aid (FAFSA) before graduating. Completing the form is a leading indicator of college enrollment, and there is ample evidence that more financial aid is associated with outcomes like college completion, Inside Higher Ed reported.

A handful of states have considered making FAFSA completion mandatory for graduating high school students, with Louisiana enacting the requirement last year. Texas will now become the second state to do so. 

During the last academic year, Louisiana saw FAFSA completions by high school students climb by more than 25 percent. 

"As the forerunner of this kind of policy, the early successes that Louisiana has seen with mandatory FAFSA has to be encouraging for other states," said Bill DeBaun, director of data and evaluation at the National College Access Network. "We shouldn't assume Texas will see the same effects Louisiana did. But given the scale of the state, even a modest effect could make a big splash on the FAFSA completion cycle."

College access groups say high school seniors leave millions of aid dollars on the table each year by not completing the form—often because it is too difficult or they do not believe they will qualify for aid.

The complexity of the FAFSA application has come under increasing scrutiny at the federal level, reported Inside Higher Ed. Senate lawmakers negotiating a reauthorization of the Higher Education Act have identified a streamlined application as a top priority. Meanwhile, the Education Department in recent years has rolled out changes designed to simplify FAFSA completion, like the IRS data retrieval tool and the use of prior-prior year family income. 

The complexity of the form remains a major obstacle for students and parents, though. Therefore, achieving big gains in FAFSA completion requires significant investment and outreach by schools and state officials.

Louisiana launched a multipronged approach to FAFSA completion backed by funding from the Kresge Foundation, which included a peer support program, automated phone reminders, financial incentive vouchers, and waivers, among other things. 

In Texas, state officials are still finalizing the details for howout the requirement would work in practice on high school campuses. The Texas Education Agency will appoint an advisory committee to develop expectations for those campuses.

 

Related Link

Inside Higher Ed

https://www.insidehighered.com/news/2019/07/10/texas-becomes-second-state-require-fafsa-completion

 
Michelle Mott
Categories :
  • Advocacy
  • Financial Aid and FAFSA
  • Higher Education Act
  • State Relations
Tags :
  • Access and Equity
  • college completion
  • data retrieval tool
  • FAFSA
  • Financial Aid
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