Federal Higher Education Act Reauthorization Proposals Released

Category: Federal Issues

US House and Senate Education Committee leaders recently released outlines of their plans to reauthorize the Higher Education Act, revealing an expected policy divide in approaches to reauthorization. House Republicans announced a focus on streamlining and consolidating federal student aid programs into “one grant, one loan, and one work-study program,” creating the “Flex Pell” to allow students to draw down grant funding outside the traditional academic schedule, addressing cost drivers of the Pell Grant Program, encouraging competency-based and online education, eliminating certain regulations affecting colleges, and preventing a government rating system for higher education.  House priorities can be viewed here.

Two Senate proposals also have been outlined—the Higher Education Affordability Act proposed by Senator Tom Harkin (D-IA) and the Financial Aid Simplification and Transparency Act (FAST Act) by Senators Lamar Alexander (R-TN) and Michael Bennet (D-CO).  Senator Harkin’s proposal calls for year-round Pell Grants, new federal accountability measures for colleges, increased consumer protection for student loan borrowers, and a State-Federal College Affordability Partnership to increase state investment in public higher education and lower tuition costs.  More information on Harkin’s proposal is available here.

Senators Alexander and Bennet’s proposal includes provisions aimed at simplifying federal financial aid processes, streamlining federal grant and loan programs, discouraging over-borrowing by tying the amount a student is authorized to borrow to enrollment status (e.g. full-time, part-time), simplifying repayments, and allowing the use of Pell Grants year-round.  The proposal would eliminate the FAFSA and instead create the “Student Aid Short Form,” requiring answers to the following two questions:  What is your family size? What was your household income two years ago?  Click here for more information.

We’ll keep you updated as these proposals make their way through the federal legislative process.  Check back soon for more information.

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