August 19, 2008
Dear NASFAA Member:
As you have likely heard by now, the Higher Education Opportunity Act, a measure reauthorizing the set of laws which govern student financial aid (among other matters pertaining to postsecondary education) was signed into law by President Bush on August 14, 2008.
During the prolonged reauthorization of the law (the Higher Education Act expired on September 30, 2003 and its program authority was maintained by a series of short-term extensions), NASFAA, through our Federal Issues Committee and the Reauthorization Task Force, was engaged in ongoing advocacy efforts to positively impact the contents of the measure and negotiate on behalf of our members the best outcome for students and families. Those two committees are to be commended for the commitment of their members to serving the needs of the profession, schools, and students over the extended time it took to complete work on this revision of the law.
Throughout this effort and on many of the relevant issues, we were joined by others in the higher education community, such as ACE, AASCU, NAICU, and AACC.
Like any piece of legislation this size, the measure that was finally signed into law represents a compromise between many wide and varied stakeholders. Financial aid administrators will undoubtedly find that the HEOA contains extensive changes in many aspects of the student aid process. Some of these changes are extremely positive, while others seem likely to place an additional burden on financial aid administrators and other campus offices.
While this measure is far from perfect, it does provide much-needed increases in federal grant aid for needy students and creates important protections for student borrowers.
NASFAA is particularly pleased that the legislation increases the authorized funding levels for Federal Pell Grants, which help the neediest of the nation’s students. The HEOA also increases the minimum Pell Grant award and extends eligibility to year-round enrollment so that students who accelerate their program are not penalized.
These increases in the Pell Grant program flexibility and authorization levels are a good start. However - as NASFAA stated in a July 30 letter to House and Senate leadership-the litmus test takes place at the appropriations level, when lawmakers put their legislative rhetoric into dollars.
While less than what we advocated, NASFAA also supports the new law’s requirement for school participation in a self-certification process for private student loan applications to ensure that students receive appropriate loan counseling and avoid unnecessary debt.
The law also introduces a federal code of conduct for financial aid offices that work with loan providers. The bill carefully balances the need for lenders and financial aid offices to collaborate to meet the best interests of students with protection against potential conflicts of interest. We hope this will ultimately provide one law for financial aid offices and lenders to abide by, rather than having to navigate a confusing maze of other conflicting codes. Such a reduction in administrative burden can free schools to return their attention to their primary mission: serving students.
Conversely, there are some aspects of the law which will cause heartburn to institutions, such as
Timing was critical in the completion of this reauthorization. As we look toward crucial presidential and congressional elections this fall, a failure to complete the bill now may have resulted in a further and significant delay in its passage. Signing the bill before so many schools commence their academic year signals a commitment to students that the nation is willing to invest in their academic success.
NASFAA is pleased to see the HEOA finalized, as further delay could have caused the years of effort put into refining the bill to be lost. Also, it is entirely possible that a delayed passage of the HEOA and the need next year for a new successor reauthorization bill could have resulted in new, objectionable provisions.
It was important for the health of our federal student aid programs that this reauthorization be completed, so we can work toward the next step of increased higher education appropriations.
NASFAA will continue to work with the Department of Education to ease administrative burdens included in the new measures. We urge our members to email us with suggestions for technical changes that need to be made to the legislation to improve on-campus operational issues that concern you.
NASFAA HEOA Resources
Immediately following Senate and House passage of HEOA, NASFAA staff compiled a general summary of the 1,100-page legislation using the explanatory statement of the conference committee as well as the legislative text of the Conference Report. The Department of Education will have the final say in interpreting lawmakers' intent when it develops regulatory language through Negotiated Rulemaking.
In order to give members a chance to learn more about the HEOA and ask questions, NASFAA is holding a free Webinar for members on August 21. The event will address a number of the immediate implementation issues and other HEOA questions, including student consumer information and disclosures, provisions that impact veterans and military personnel, the most significant changes to need analysis and student eligibility, and the most important changes to the individual Title IV programs. This is part of NASFAA’s ongoing effort to make sure members are informed about HEOA and its potential impact. We encourage you to attend.
Participants may register by going to the NASFAA Webinar Center. Those who can't attend the live event should register as well so they can access the archived recording and handouts.
This is just the one of the training and information resources NASFAA will provide to members as we continue to analyze the new law. I hope you will share your questions and concerns about the law with our staff at Web@NASFAA.org so that we can help you find the answers you need.
Sincerely, Dr. Philip R. Day, Jr.
President and CEO
National Association of Student Financial Aid Administrators
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National Association of Student Financial Aid Administrators (NASFAA)
1101 Connecticut Avenue, NW, Suite 1100, Washington, DC 20036
Phone: (202) 785-0453; Fax: (202) 785-1487; Web: www.NASFAA.org