In just under an hour of deliberations, the Senate Health, Education, Labor, and Pensions Committee approved both the Higher Education Act Reauthorization and the Budget Reconciliation bills by wide margins. The two bills passed with the addition of only three amendments, which would make substantial changes to the federal student aid programs by raising $22 billion over five years for need-based aid and at the same time cutting approximately $1 billion in spending. These increases and savings would come at the expense of student loan providers in the form of subsidy cuts.
The HEA reauthorization bill (S. 1642), Higher Education Amendments of 2007, passed on a 20-0 vote and faced little opposition.
The budget reconciliation bill, Higher Education Access Act of 2007, received some debate, but still passed by an overwhelming 17-3 majority. Three Republican Senators - Judd Gregg (R-NH), Richard Burr (R-NC), and Wayne Allard (R-CO) - cast the dissenting votes.
Committee Chairman Senator Edward Kennedy (D-MA) voiced his approval of the passage of the two bills in a press release yesterday.
"This is a historic day for America's students. The HELP Committee has passed two bills that will increase access to college and make sure scarce federal dollars are going where they are most needed - to students," said Kennedy.
In his opening remarks at the committee meeting, Kennedy said that Congress had lost sight of the principle that "no qualified student should be denied the opportunity to attend college because of the cost."
As a result, Kennedy stated than 400,000 qualified students do not attend a four-year college due to the costs and that those who do attend college are becoming increasingly burdened by student loan debt.
"Today, the average student leaves college with more than $19,000 in student loan debt. This mountain of debt is distorting countless Americans’ basic life choices," said Kennedy.
According to Kennedy, the two bills would "restore the fundamental principle that guided the Higher Education Act at its inception - that no student should have to mortgage his or her future in order to pay for higher education today."
While debate was limited, some Senators criticized the Democrats for using the budget reconciliation process to push through this sweeping legislation. Senator Gregg asked that the two bills be combined into just one bill, but other members of the Committee were resistant to the idea because it could allow Republicans to invoke the Byrd rule. The Byrd rule prohibits the Senate from considering "extraneous matter" as part of a reconciliation bill and could allow Republicans an opportunity to derail portions of the proposed legislation.
But Gregg also voiced his support of the student loan auction process as outlined in the Reconciliation bill, saying that he would like to see it expanded to the other loan programs. Currently it would be limited to PLUS loans.
Only three amendments were added to the proposed legislation. Two amendments that were proposed and added by Burr create two matching grant programs to promote financial literacy and encourage disadvantaged high school students to attend college. No details have yet been released on the two matching grant programs.
Senator Sherrod Brown (D-OH) also added an amendment that would ensure that no TRIO program would be required to participate in a program evaluation that requires recruiting students to serve as a control group. According to the amendment, the U.S. Department of Education would not be able to reward or penalize any institution for choosing to participate, or refusing to participate, in a study that requires such a control group.
Many are speculating that the College Cost Reduction Act, which was passed by the House Education Committee last week, may make it to the House floor for a vote as early as next week. The two Senate bills passed yesterday aren't expected to reach a full Senate vote until sometime in July.
Other Media Coverage
By Justin Draeger
NASFAA Assistant Director for Communications
Larry Zaglaniczny, NASFAA Director for Congressional Relations, also contributed to this article.
Posted 06/21/07 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
