Loan Limits, Regulatory Rollback in New Higher Education Bill

"Limits on student borrowing, a simplified financial aid process and an easing of accountability measures for colleges are among the main features of a wide-ranging higher education reauthorization bill introduced by Republicans on the House Education and the Workforce Committee," according to Bloomberg BNA.

"Committee Chairwoman Virginia Foxx (R-N.C.) told Bloomberg Government that the bill won’t need another hearing because the committee held a number of them on higher education in the past several years.

'A hard truth that students, families, and institutions must face is that the promise of a postsecondary education is broken,' Foxx said in a statement soon after the bill (H.R. 4508) was released Dec. 1. 'We need a higher education system that is designed to meet the needs of today’s students.'

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In streamlining the federal student aid program, a number of grants would be eliminated, including the Federal Supplemental Education Opportunity Grant, funding for low-income students, which the White House considered cutting earlier this year. It would also end the Perkins Loan program, which expired at the end of September and has yet to be reauthorized by Congress.

The benefits to streamlining a program have been debated by student aid administrators for many years, said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators. But he said, however, no matter how many programs there were, it was important to keep funding levels for students the same.

'One of our top priorities is to ensure that any funds produced through program consolidation are held and reinvested into students,' Draeger said in a statement."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 12/5/2017

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