"This bill will create a higher education system that is more navigable for students and families," said House Education Committee Chair George Miller (D-CA). He pointed to new provisions that would help students navigate the "murky" environment of student loans, hold schools responsible for federal funds, simplify the financial aid application process, and increase college access.
"I am confident that this bill will help ensure that every qualified student has the opportunity to get an affordable, world-class college education," said Miller. "And I believe that this bill will help drive the innovation our nation needs to maintain its competitive edge."
While the bill received wide bipartisan support, Republicans were soured by the Rules process that eliminated the majority of Republican amendments submitted to the House Rules Committee. From the 61 amendments originally submitted to the House Rules Committee, only 27 were considered on the House floor. Only four of the 27 amendments under consideration yesterday came from Republicans.
The ranking House Education Committee Howard "Buck" McKeon admonished Democrats for using the budget reconciliation process to make changes to the student loan programs last fall in the College Cost Reduction and Access Act (CCRAA). McKeon pointed to the loss of more than 1,200 jobs in the Federal Family Education Loan Program (FFELP) and eight lenders who have left - or limited participation - in FFELP as signs that Congress may have "cut not just the fat, but also the bone" in regards to lender subsidies.
McKeon had hoped to introduce an amendment that would have required the Secretary of Education to monitor the availability of student loans in light of the situation with the financial markets, but the amendment was struck down from consideration during the Rules process.
Still, McKeon spoke favorably of the bill and joined Miller in urging House members to pass it. "On the whole, this bill is an achievement of persistence and commitment... it uses the power of sunshine and transparency to transform all aspects of our higher education system. Above all else, this bill offers real solutions to the college cost crisis."
Adopted: Manager's Amendment submitted by George Miller (D-CA)
The manager's amendment makes technical changes to the bill, as well as changes to the provisions on college costs to a more consumer friendly approach, while keeping the focus on accountability; a revised technical amendment to Pell grant funding; modifications to the Cohort Default Rate provisions to provide for a transition period before the new sanctions are imposed and provide for targeted technical assistance to schools in danger of losing their federal student aid as a result of high Cohort Default Rates; provisions to ensure that students are aware of lower-cost federal student aid options before turning to more expensive private loans and a means to helps students avoid potentially compromising their federal aid eligibility by inadvertently relying on private student loans or borrowing excess amounts of private student loans; and includes studies.
Adopted: National Study On Regulations on Higher Education Amendment submitted by Howard McKeon (R-CA)
This amendment would require the National Research Council to conduct a study of the regulations on institutions of higher education. NASFAA signed onto a letter of support for the amendment that was distributed to members of the House by the American Council on Education during the debate. The purpose of the bill is to target duplicative regulations that contribute to added costs to colleges that are ultimately passed onto students. The amendment received wide broad partisan support.
Adopted: Competitive Grants for Tribally Controlled Colleges and Universities Amendment submitted by Dale Kildee (D-MI)
Kildee's amendment authorizes discretion currently exercised by the Secretary of Education to reserve for competitive grants to Tribally Controlled Colleges and Universities for construction, maintenance, or renovation of campus facilities a percentage of funds appropriated for Tribal Colleges and Universities under Title III of the Higher Education Act.
Adopted: Market-Based Reforms in FFELP Amendment submitted by Thomas Petri (R-WI)
The amendment would require the existing Education-Treasury Study Group to evaluate the feasibility of an alternative market-based reform to the Federal Family Education Loan Program. The recommended alternative hopes to reduce federal costs to taxpayers and use savings to increase need-based grant aid to low-income student.
McKeon pointed out that the GAO in cooperation with the Department of Education already conducted a study several years ago that found auctions to be inefficient in delivering student loans. McKeon also questioned whether the Department has the capability to carry out the auction system.
On a recorded vote, the amendment was adopted by a vote of 260 to 153.
Adopted: New Audit and Reporting Provisions for FFELP Amendment submitted by Thomas Petri (R-WI)
The amendment would extend the new audit and reporting provisions applied only to the Direct Loan program to the Federal Family Education Loan Program. Petri contended that the Direct Loan Program has had no significant instances of unethical behavior, but has had imposed on it several new and burdensome reporting requirements. Petri's amendment would extend those new reporting provisions on guaranty agencies in the FFEL program as well.
Representative Tom Price (R-GA) opposed the amendment and claimed that FFEL participants are subject to full and regular audits, but the Department of Education is not. Price believes this amendment creates a duplicate audit for the FFEL program.
On a recorded vote, tech amendment was adopted by a vote of 222 to 191.
Adopted: Quality Efficiency Task Force Amendment submitted by Mike Castle (R-DE)
Castle's amendment would require a Quality Efficiency Task Forces to develop annual benchmarks for the top 5 percent of institutions in each institution category that have the largest increase in their tuition and fees over the most recent three year period in which data is available. The amendment also requires those institutions not meeting the benchmarks to provide the Secretary of Education a detailed explanation of the reasons why the institution did not meet such benchmarks.
NASFAA joined five other higher education associations in a letter of opposition to this amendment because its provisions are "excessive and unnecessary" and will create even more expense for colleges and universities that attempt to collect all the information required by this amendment.
The amendment passed on a voice vote.
Not Adopted: Bankruptcy Protection for Private Student Loan Borrowers Amendment submitted by Danny Davis (D-IL)
This amendment would restore protections to private student loan borrowers similar to those afforded other unsecured debtors by allowing them to discharge private student loans via bankruptcy. NASFAA supported the passage of this amendment.
"The amendment restores elemental fairness to student loan borrowers who need the protection afforded by bankruptcy law treating them and their student loans the same under bankruptcy law as the law treats other individuals seeking bankruptcy protection who have other consumer debts," wrote NASFAA Director for Congressional Relations Larry Zaglaniczny in an email to House representatives in support of the amendment.
This code will increase risks to lenders, according to McKeon. Lenders will respond to this amendment by increasing borrower standards and further restricting student loan access. Republicans also contend that this provision will help some borrowers, but will harm much more because of the restrictions on private student loan borrowing that will result because of it.
But Miller contended that these loans are similar to loans made in the subprime market and bankruptcy allows a much needed relief to borrowers who find themselves overwhelmed by student loan debt. On a recorded vote the amendment defeated by a vote of 179 to 236.
Adopted: Eliminate Interest on Direct Consolidation Loans For Active Duty Service Members Amendment submitted by Susan Davis (D-CA)
This amendment will prevent interest from accruing for active duty service members and qualifying National Guard members for up to 60 months on Direct Consolidation Loans. McKeon said that while he accepts the amendment, he hopes that when the bill is conferenced provisions will be put in place to extend the same benefit to FFEL consolidation loan borrowers.
Adopted: Student Loan Forgiveness for Physical Therapists Amendment submitted by Joe Sestak (D-PA)
This amendment includes physical therapists as an occupation defined as an area of national need to qualify for student loan forgiveness under Sec. 428K of the Higher Education Act.
Adopted: Articulation Agreement Amendment submitted by Joe Sestak (D-PA)
This amendment alters the articulation agreement strategies that may be employed by states and institutions of higher education to include management systems regarding course equivalency, transfer of credit, and articulation.
Adopted: "Teach to Reach" Grants Amendment submitted by John Yarmuth (D-KY)
The amendment provides competitive Teach to Reach grants to eligible partnerships to provide general education teacher candidates with the knowledge and skills to effectively instruct students with disabilities in their classrooms. Eligible partnerships must include an institution of higher education, a special education department within that institution, and a high-need local education agency. The amendment seeks to better train teachers to recognize and work with high functioning students with disabilities.
Adopted: Holistic Community-Centered Partnerships Against Gang Violence Amendment submitted by Alcee L. Hastings (D-FL) and Linda Sánchez, Linda (D-CA)
The amendment authorizes a nationwide pilot program through the Department of Education to promote holistic community-centered partnerships aimed at mitigating gang violence and reducing recidivism rates among juvenile ex-offenders previously detained for gang-related offenses.
Adopted: Requiring Colleges to Report on Endowment Spending Amendment submitted by Peter Welch (D-VT)
The amendment would require annual reporting by colleges and universities on how much of their endowment was paid out each year for the purpose of containing college costs. "For every dollar we put into financial aid, we see another increase in tuition," said Welch who feels that this would provide Congress information that is already being provided to university trustees. Republicans agreed with the amendment and said that this bill will help highlight many of the positive things that colleges and universities are doing to keep college costs down.
Adopted: Graduate Assistance in Areas of National Need (GAANN) Amendment submitted by Tom Lantos (D-CA) and Melvin Watt (D-NC)
The GAANN amendment makes a technical correction to the Graduate Assistance in Areas of National Need program to clarify Congressional intent that a Masters Degree level institution or program is eligible to be the lead recipient of a grant under the GAANN program.
In-State Tuition for Members of the Armed Forces Amendment Submitted by Chet Edwards (D-TX) and Nancy Boyda (D-KA)
This amendment would prohibit a state from charging members of the armed forces who are on active duty for more than 30 days and whose domicile or permanent duty station is in such state, and such members' dependents, more than the in-state tuition for attending a public institution of higher education in that state. Provides that, even if such members' permanent duty station is subsequently changed to a location outside the state, they or their dependents must continue to be charged no more than the in-state tuition if they remain continuously enrolled at the school.
Adopted: Pell Eligibility to Children of Fallen Soldiers Amendment submitted by Eddie Bernice Johnson (D-TX) and Don Young (R-AK)
This amendment expands Pell Grant eligibility to children who lost a parent or guardian as a result of the conflicts in Iraq or Afghanistan. These children will be eligible for the maximum amount of Pell Grant assistance.
Adopted: Student Loan Relief for School Administrators in Low-Income Districts submitted by Bart Stupak (D-MI)
This amendment provides federal student loan relief to borrowers who go into school administration in low-income school districts. Applies to any borrower who has been employed as a full-time school superintendent, principal, or other administrator for five consecutive complete school years in a school district in a low-income area.
Adopted: Pre-Population of FAFSA Income and Asset Information Amendment submitted by Lloyd Doggett (D-TX)
The amendment encourages the prepopulation of FAFSA income and asset information, by taxpayer consent, with tax data provided directly from the IRS to the Department of Education, and allows the Secretary of Education to provide for the use of second preceding tax year information.
Adopted: Study on Student Aid For Less Than Half-Time Students Amendment submitted by Brian Baird (D-WA)
This amendment would direct the Secretary of Education to conduct a study on the costs and benefits of making student aid available to less than half-time students. The Secretary would then make recommendations on how to best design a demonstration loan program targeted for less than half-time students.
Adopted: Sustainability Planning Grants Amendment submitted by Jay Inslee (D-WA)
Inslee's amendment would ensure that competitive Sustainability Planning Grants explicitly provide for "greenhouse gas emissions reductions" to reduce the threat of global warming and adds an eligibility requirement to FIPSE to ensure that institutions meet current energy efficiency standards. Additionally, includes a sense of Congress that the Federal Perkins Loan Program, which provides low-interest loans to help needy students finance a degree in higher education, should remain a campus-based aid program and to support increased funds to provide more low-income students with options.
Adopted: Loan Forgiveness For Community College Students Who Mentor At-Risk Youth submitted by Joseph Crowley (D-NY)
Crowley's amendment would allow community college students to have $10 forgiven from their student loans for every hour they dedicate to mentoring an at-risk child.
Adopted: Increased Authorization Levels for HBCUs and HBGIs Amendment submitted by Jim Cooper (D-TN)
The amendment increases the authorization level, from $300 million to $500 million, for the 103 Historically Black Colleges and Universities. Increases the authorization level, from $100 million to $125 million, for the 18 Historically Black Graduate Institutions.
Adopted: College Textbook Rental Grants Amendment submitted by Tim Ryan (D-OH) and Jason Altmire (D-PA)
The amendment creates a pilot competitive grant program (available to no more than 10 colleges) to assist institutions of higher education in setting up college textbook rental programs.
Adopted: Authorization Levels for Teach for America Amendment submitted by Chris Van Hollen (D-MD) and Mike Castle (R-DE)
This amendment authorizes Teach for America at $20 million for FY09 and $25 million for FY10. This should allow Teach for America membership to increase from 5,000 to 8,000.
Adopted: Statement of Policy on Working Relationship of Campus Security and State and Local Law Enforcement Amendment submitted by Kirsten Gillibrand (D-NY)
This amendment would require institutions of Higher Education shall adopt a statement of current policy concerning the working relationship of campus security personnel with State and local law enforcement agencies for the investigation of felonies or a report of a missing student.
Adopted: Truth in Tuition Amendment submitted by Patrick Murphy (D-PA) and Sue Myrick (R-NC)
The amendment would require colleges to provide information about the anticipated cost of a post-secondary degree. Institutions would have the option of offering either a multi-year tuition and fee schedule or a traditional, single-year tuition and fee schedule with a nonbinding, multi-year estimate of a student's net costs.
NASFAA joined five other higher education associations in a letter of opposition to this amendment because the bill would require that similar information be provided in a different - and less reliable - form to students and families. The provisions now in H.R. 4137 seek to provide students and families with information about past patterns in order to allow them to make judgments. The Murphy-Myrick amendment would require institutions to try to predict future tuition amounts, over which they have little control - including, among other things - inconsistencies in state funding.
Representative Tim Bishop (D-NY) expressed concern that students would be making decisions based on information that is speculative and asked for the opportunity to clarify the amendment in conference.
Adopted: Grant for Longitudinal Data System Amendment submitted by Heath Shuler (D-NC)
The Shuler amendment would authorize a competitive grant program through the Department of Education that would allow institutions of higher education or consortia to create longitudinal data systems to efficiently and accurately manage, analyze, disaggregate, and use individual student data. The amendment authorizes programs in no more than five states for a period of three years. McKeon praised the bill for being done at the state level.
According to the House Committee on Education and Labor, the College Opportunity and Affordability Act:
