The Senate is scheduled to reconvene on Monday, April 20 and the House plans to reconvene the following day. The two chambers will be considering measures that could have a wide-ranging impact on student aid.

Democratic leaders are reportedly pushing for negotiators representing both chambers to approve the 2010 fiscal year budget resolution, which provides broad spending outlines and could include a legislative process that would make it easier for the Senate to approve President Obama's proposal to eliminate the FFELP and make Pell Grants a true entitlement program. Once negotiators agree on a final version of the budget resolution the House and Senate must vote on this negotiated version, known as a conference report.

The House and Senate approved their respective spending plans in the beginning of April and the House version contains reconciliation instructions for the House Education and Labor Committee to create $1 billion in budget savings. The Senate version does not contain these instructions. The reconciliation instructions would make it easier for the Senate to pass major changes to student aid proposed by the Obama administration by limiting debate and amendments, and only requiring 51 votes (instead of 60) to prevent a filibuster.

The reconciliation instructions included in the House's version of the 2010 fiscal year budget resolution have become a contentious item and it is expected to be one of the major obstacles negotiators will have to overcome in order to agree on a conference report.

While House and Senate negotiators iron out the differences between the two budget resolutions, Appropriations Committees will begin hearings on their respective spending measures and begin to move forward on the appropriations cycle for Fiscal Year 2010.

In addition, the Senate is expected to pass legislation providing corrections to the Higher Education Act. This bill would:

• suspend the Parent PLUS Loan auction
• assist borrowers who are unable to rehabilitate their loans due to current market conditions
• move up the date (from July 2010 to July 2009) for veteran education benefits to be excluded when determining eligibility for student loans and campus-based aid.
• delay implementation of the simplified Free Application for Federal Student Aid (FAFSA)

By Haley Chitty
NASFAA Director of Communications

Posted 04/17/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.