21st Century Competitiveness Subcommittee Chairman Howard P. "Buck" McKeon (R-Calif.) on March 3 formally announced that he will drop the most controversial provision of his Affordability in Higher Education Act. The bill, H.R. 3311, would have punished some colleges and universities that rapidly increase tuition rates by revoking their eligibility for campus-based and other Title IV student financial aid programs--with the exception of Pell Grants and Part B and D Stafford Loans.
The bill aims to curb burgeoning tuition costs, but opponents to the Republican-backed plan said it would enforce price controls, cut funding to college students in need of financial aid, and undercut institutions' efforts to increase or maintain academic quality.
A press release announcing the decision said McKeon will offer to remove the provision penalizing institutions "in exchange for a continued commitment on the part of institutions to avoid excessive tuition hikes that hurt parents and students." The congressman warned, however, that he will put the provision back in the bill immediately "if the positive trend slows or is reversed in the months ahead."
NASFAA Lauds McKeon's Decision
NASFAA President Dallas Martin said he is "pleased" that McKeon has decided to remove the punitive measure from his bill.
"NASFAA Members, like Congressman McKeon, are concerned about rising college costs and we pledge our support in finding reasonable solutions to help address the issue," Martin said. "However, we cannot support sanctions being imposed upon institutions that in turn prevent qualified students from receiving need-based aid."
In his statement to the press, McKeon said, "I am delighted that my bill successfully sent a strong message to colleges and universities that more must be done to reign [sic] in the cost of tuition and fees. This is a very positive development."
"Thanks to the debate this proposal has sparked, more and more institutions today are announcing voluntary steps to avoid excessive tuition hikes that hurt parents and students. This is a victory for low and middle income students," he said.
As proof that institutions have taken McKeon's proposal to heart, the lawmaker cited a February 12 Baltimore Sun article that said the bill "has already had the positive effect of thrusting the topic of tuition controls into local debates over college affordability."
McKeon's office also cited the recent decision by several institutions --including the University of Virginia and George Washington University--to freeze tuition at freshman year levels, increase need-based grants, or even lower tuition rates.
The bill introduced on October 16, 2003 differed significantly from the version first proposed several months prior. Early on, McKeon proposed to withdraw federal aid from institutions that increase tuition and fees by more than twice the rate of inflation for two years in a row. The final version of the affordability bill softened that measure by giving institutions longer to get tuition increases under control and exempting low-cost schools from penalties.
Some portions of H.R. 3311 will be retained as lawmakers move forward. Specifically, the bill still mandates the creation of a College Affordability Index, which would be a standard measure parents and students can use to assess tuition and fee increases over a given period. The amended legislation would also retain a provision to eliminate barriers for students transferring credits from one institution to another, and to create a new College Affordability Demonstration Program that encourages innovative strategies in the delivery of financial aid and education.
NASFAA's Martin said "We strongly support efforts that will provide students and their families with accurate and easily accessible information about the cost of college and the availability of student financial aid."
Democrats Respond
Also on March 3, House Democrats issued a press release responding to McKeon's announcement. Rep. George Miller (D-Calif.), ranking member of the House education committee, said "even with the change ... the Republican proposal still fails to address the primary reason for rising college tuition--that states have pushed higher prices onto students at public institutions, which serve more than three-quarters of all college students."
"Rep. McKeon claims to have backed away from his original plan because of indications that certain colleges and universities are taking action on their own to stop tuition hikes," said Miller. "Despite efforts by a number of colleges and universities to make tuition affordable, the facts show that tuition continues to rise rapidly."
"It is more likely that McKeon abandoned his plan because of the intense criticism it rightly sparked," Miller said. Democrats have offered their own reauthorization plan, the details of which can be viewed on-line.
An updated summary of the revised bill was released in conjunction with McKeon's March 3 announcement.
The House Committee on Education and the Workforce will likely take up H.R. 3311 soon, as part of a larger bill to reauthorize the Higher Education Act.
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted March 4, 2004 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2004. Redistribution to non-NASFAA institutions is prohibited
Please submit Web Site questions or comments to web@nasfaa.org
