The House of Representatives on October 6 and 7 passed two higher education bills introduced by Republican legislators. The Higher Education Extension Act of 2004 (H.R. 5185) extends authority for the continuation of Higher Education Act (HEA) programs through September 30, 2005. The unanimously-passed Taxpayer-Teacher Protection Act (H.R. 5186) would close for one year a loophole in current student aid regulation that allows nonprofit lenders that finance their loans using tax-exempt bonds a guaranteed return of 9.5%.
H.R. 5186 uses the savings from these "excess subsidies" to expand loan forgiveness for qualified teachers of math, science, and special education who agree to teach for five or more years in high-poverty K-12 schools.
In a House Education and the Workforce Committee majority staff press release, Chairman John Boehner (R-Ohio) said H.R. 5186's passage will clear the way for this year's HEA reauthorization.
The only question remaining "is whether Democrats and Republicans can agree on how the money should be used within the Higher Education Act," Boehner said. "We couldn't find agreement on that question this year, and unfortunately it looks like that debate will continue into 2005. But in the meantime, this bill gives us the chance to close down the subsidies now, and use the money for something we can all agree is a worthy cause."
21st Century Competitiveness Subcommittee Chairman Howard "Buck" McKeon (R-Calif.) noted that while he would have preferred to address the 9.5% lender subsidy in a comprehensive HEA reauthorization bill, this is the best solution for the time being. "I hope next year, my Democratic colleagues will join us in the same bipartisan fashion to pass a permanent solution to this very critical problem," he said.
In a minority staff press release responding to the votes, Rep. George Miller (Calif.) the ranking Democrat on the House education committee said that GOP leaders "finally took one step in the right direction" by bringing H.R. 5186 to a vote. However, Miller added, "The failure to permanently and completely close the loophole means that some 10,000 teachers who are working in our nation’s most challenging schools will not get the loan forgiveness that the sponsors of this legislation admit is desperately needed."
Senate bill S. 2877 is a companion to House bill H.R. 5186. Both bills were introduced last week after a flurry of newspaper editorials, articles, and legislative attacks and counterattacks. The Senate is expected to consider S. 2877 this week.
NASFAA President Dallas Martin on October 4 sent letters to House education committee leaders seeking passage of all three bills.
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted October 8, 2004 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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