Legislative News RSS
HEA Technical Corrections Bill Adopts Provisions Advocated by NASFAA
The HEOA Technical Corrections Bill (H.R.1777) passed by the House and Senate on Tuesday and expected to be signed into law by the President includes several provisions advocated by NASFAA. Most notably the bill doesn't make the Department's proposed changes to the "Master Calendar" requirements, excludes EFC from information that must be given to students for the self-certification form, moves the date that VA benefits are excluded from estimated financial assistance up to July 1, 2009, allows lenders and guaranty agencies to provide entrance counseling, expands the Departments loan purchasing authority to allow it to buy rehabilitated loans, and extends the operation of experimental sites that have not been deemed "successful" to June 30, 2010.
Defense Department Releases GI Bill Transferability Policy
The Defense Department announced yesterday its policy for transferring educational benefits to the spouses and children of service members under the Post 9/11 GI Bill, which takes effect Aug. 1, 2009. Career service members on active duty or in the selected reserve on Aug. 1, 2009, and who are eligible for the Post-9/11 GI Bill may be entitled to transfer all or a portion of their education entitlement to one or more family members. The guidance just released refers to the transferability of benefits provisions in the original Post-9/11 GI Bill. The 2009 Supplemental Appropriations bill, which is now awaiting signature by President Obama, extends transferability further, allowing children to use Post-9/11 GI Bill benefits that could have been transferred to them if their military parent had lived.
House and Senate Pass HEA Technical Amendments Bill
The House unanimously approved legislation (H.R. 1777) yesterday that makes technical amendments to the Higher Education Act. The House approval came after the Senate unanimously approved the bill earlier in the day. The House and Senate's action clear the bill to be signed into law by President Obama. The text of the bill is not yet available, but NASFAA expects to publish additional details about the bill in tomorrow's Today's News as the text becomes available.
CBO Revised Budget Estimate Slightly Lowers Projected Savings from Eliminating FFELP
Yesterday, the Congressional Budget Office released updated estimates on the costs and savings of generated from the president's budget request. The estimated savings from eliminating the Federal Family Education Loan Program (FFELP) decreased slightly from earlier estimates from $94 billion to $87 billion. The updated estimates will make it harder to implement President Obama's proposal for a mandatory Pell grant. Instead, Democratic leaders are expected to push legislation that uses savings from eliminating FFEL to increase mandatory Pell spending.
NASFAA Summer Legislative Update
Congress has just eight weeks to tackle a very aggressive legislative agenda before they are scheduled to break for August recess. This legislative agenda includes two pieces of legislation that will have an impact on higher education: the Technical Amendments Bill (H.R. 1777) and the budget reconciliation legislation which is expected to include significant changes to student aid. The Obama administration has asked Congress to eliminate the FFEL program to offset increases in the Pell Grant.
Appropriation Committee Democrats Express Concern About Making Pell Mandatory
The Chairmen of the House and Senate Appropriations Subcommittees on Labor, Health and Human Services and Education both expressed concerns yesterday about the Obama administration's proposal to make Pell Grants a mandatory spending program during separate hearings with Education Secretary Arne Duncan. House Subcommittee Chairman David Obey (D-WI), who is also chairman of the House Appropriations Committee, said that he had some misgivings about making Pell mandatory because he thought it would not be fiscally responsible. Senate Subcommittee Chairman Tom Harkin (D-IA) told Duncan that he supported the administration's proposal to administer all loans through the Direct Loan program, but would need to discuss the administration's proposal to make Pell mandatory because committee members and other Senators had some concerns.
House Education Committee to Hold Hearing on Loan Reform
The House Education and Labor Committee announced that it will hold a hearing titled, "Increasing Student Aid through Loan Reform" on May 21 at 10:00 a.m. EDT. Witnesses for the hearing have not yet been announced. The Committee is expected to broadcast the hearing live online.
NASFAA Opposes Department of Ed's Proposal to Alter the Master Calendar
NASFAA sent a letter yesterday to education leaders in the House and Senate urging them not to adopt an amendment proposed by the U.S. Department of Education to change "Master Calendar" requirements as part of H.R. 1777, a bill to make technical corrections to the HEA. The HEA currently requires that regulations implementing the student aid programs under Title IV of the HEA that are published on or before November 1 of a given year do not take effect until July 1 of the next year - a delay of eight months after promulgation. Duncan proposed to limit the application of this requirement to only those regulations that affect the calculation of grant, loan, or work assistance under those programs.
House Panel Backs Increased Aid to Adult-Education Programs (The Chronicle of Higher Education)
"College officials and adult students, including a well-known country singer, argued for increases in federal funds for job training and adult education in a Congressional hearing on Tuesday. And the lawmakers appeared sympathetic to their pleas," The Chronicle of Higher Education reports. "A House of Representatives education subcommittee held the session as Congress prepares to renew the Workforce Investment Act, which governs job-training grants to colleges. Members of the panel asked both the educators and the students how to improve the adult-education system."
In Looming Showdown Over Loans, Obama Turns to Students for Support (The Chronicle of Higher Education)
"In an e-mail message titled 'Students Deserve Better,' the Democratic National Committee is asking college students who backed Barack Obama in the 2008 election to send letters to Congress in support of his plan to end the bank-based guaranteed-loan program," The Chronicle of Higher Education reports. "'You know how important financial assistance is for students across America who dream of a brighter future,' the message says. 'That's why we need your help to fix a broken system.' It continues, 'The special interests - bankers, lenders, and their lobbyists - are lining up against this plan. ... Stand with the president now.'"
Student-Loan Program on Chopping Block (The Denver Post)
"Lenders and schools in Colorado are fighting to save a program that once accounted for more than 80 percent of federal student loans in the state," The Denver Post reports. "Eliminating the program, which guarantees student loans that banks, Sallie Mae and state-affiliated student lending arms such as CollegeInvest provided, could save taxpayers $94 billion over 10 years in lower costs and higher interest income, according to estimates from the Congressional Budget Office. ... But eliminating FFELP would leave students with fewer borrowing options, reduce the customer service they receive and potentially contribute to higher defaults, backers of the current program argue."
Tuition-Free Public Service Academy Bill Reintroduced
Congressman Jim Moran, (D-VA), reintroduced legislation last week that would create a U.S. Public Service Academy modeled after the current military service academies at West Point, Annapolis and Colorado Springs. The United States Public Service Academy Act (H.R. 2102) would create an undergraduate institution designed to cultivate and groom a new generation of young leaders dedicated to public service. The Public Service Academy would offer four years of tuition-free education in exchange for five years of civilian service following graduation. Eligible fields of service would include public education, public health, law enforcement, and government.
