The Senate on July 31 quietly passed H.R. 1412, the Higher Education Relief Opportunities for Students (HEROES) Act of 2003. The bill, which passed the House of Representatives on April 1, now goes to the President for signing.
H.R. 1412 gives the Secretary of Education broad authority to waive or modify requirements or regulations pertaining to the Title IV student aid programs of the Higher Education Act. Individuals affected by this bill include active duty military personnel; those performing National Guard duty during a war, operation, or national emergency; people residing in a declared disaster area; and people who have suffered economic hardship as a direct result of a war, military operation, or emergency.
According to an August 4 news release from the House Education and the Workforce Committee, "Many of the men and women serving in the Persian Gulf conflict are U.S. military reservists who are college and university students participating in federal financial aid programs."
The HEROES bill allows ED to excuse such active duty military personnel from their federal student loan obligations.
"For example, the families of military reservists who left their jobs when called to active duty could be relieved from making student loan payments during the time of service, and the families of borrowers serving on active duty could be given relief from collection calls from lenders while the conflict is taking place," noted the release.
Specifically, H.R. 1412 authorizes the Secretary to grant waivers to ensure that:
- affected aid recipients are not penalized financially because they have been called to duty;
- administrative requirements placed on affected recipients are minimized to avoid violations or defaults;
- income calculations may be modified in light of the special circumstances; and
- institutions of higher education, lenders, guaranty agencies, and others located in declared disaster areas may be granted temporary relief from reporting and due diligence, among other requirements.
The American Council on Education and 14 other organizations, including NASFAA, endorsed H.R. 1412 in a March 31 letter to House Members. NASFAA had previously endorsed the bill in a March 26 letter to House 21st Century Competitiveness Subcommittee Chairman Howard P. "Buck" McKeon (R-Calif.).
The bill was introduced on March 25 by Rep. John Kline (R-Minn.), and provides authority similar to that given during Operation Desert Storm and after the terrorist attacks of September 11, 2001.
"Providing the Secretary of Education with the flexibility to grant financial relief for the men and women serving overseas will provide critical support at a time when it is needed the most," stated House Education and the Workforce Committee Chairman John Boehner (R-Ohio). "The time has come to show our full support for the members of our armed services, and I'm pleased that the Senate has taken action to move this bill forward."
Secretary Rod Paige released a statement that said, in part, "I congratulate the Senate for its passage of HEROES legislation to aid troops who have answered the call to duty. In many instances, these servicemen and women have suspended their lives, jobs, and education. HEROES provides them with relief from student loan obligations while they are deployed. Additionally, the bill asks postsecondary institutions to provide tuition refunds to military personnel called to duty and to assist them upon their return to complete their studies.
"An essential aspect of the legislation gives the secretary of education authority to take these steps in the event of a future national emergency. I applaud the Congress for instituting this provision, in particular, to ensure a quick response to help troops and their families should that need arise."
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted August 7, 2003 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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