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Senate Passes Higher Education Act Reauthorization Legislation

July 24, 2007

The Senate today unanimously passed the Higher Education Amendments of 2007 (S. 1642), taking a significant step toward reauthorizing the Higher Education Act of 1965, which has languished in Congress since it was due for renewal in September 2004.

The legislation includes some major modifications in programs important to colleges and universities, including raising the ceiling for the maximum Pell Grant to $6,300 and increasing restrictions on the relationships between lenders, guarantee agencies and institutions.

Among other key provisions, the legislation

  • Requires institutions to disclose any plans they have for improving their academic program.
  • Defines the accrediting agency standard on student achievement as success with respect to student achievement in relation to institutional mission, “which may include different standards for different institutions or programs.”
  • Calls for five House and five Senate appointees—and five from the Secretary of Education—to the Institutional Quality and Integrity Advisory Committee.
  • Prohibits the Department of Education from establishing a national unit record database, although it authorizes a pilot program for states and consortiums desiring to do so.
  • Imposes new reporting requirements in the areas of tuition and cost of attendance, and creates a “Higher Education Price Increase Watch List” that would rank institutions by a still-to-be-determined “price index.”  
  • Requires institutions to publish their policies regarding the transfer of academic credit.
  • Redesigns the Leveraging Educational Partnership program to strengthen partnerships between the states and institutions to bolster graduation and persistence.
  • Streamlines the application process for requesting federal student aid.
  • Asks the Advisory Committee on Student Financial Aid to examine the regulatory burden imposed on colleges and universities.

The Senate voted unanimously on Tuesday to add a provision by Sen. Tom Coburn (R-OK) as amended by language developed by Sen. Edward M. Kennedy (D-MA) to ensure that federal grant and student aid funds are not used to lobby the federal government.

The original amendment would have required institutions to submit an annual report to the Department of Education to prove that no tuition funds or funds received from a federal grant, loan, or contract “were used to hire a registered lobbyist or to pay any person or entity for influencing or attempting to influence” Congress or a federal agency.

The Kennedy-Coburn compromise would prohibit colleges and universities from using federal funds to pay any person to lobby a federal agency or Congress for federal contracts, grants, loans, or cooperative agreements. It also would prohibit colleges and universities from using federal student aid funding to hire a registered lobbyist or any person or entity to secure a federal earmark.  

Other approved amendments include proposals to create a federal student loan clearinghouse; require teacher-preparation programs to set goals for increasing the number of mathematics, science, and special education teachers; require the Government Accountability Office to study the feasibility of collecting information on the employment of college graduates; and create a program of technology grants for minority-serving institutions. In addition, senators agreed to authorize federal funds for 80 Upward Bound programs that lost their grants this year, including 21 programs at historically black colleges and universities.

At the last moment, an amendment on peer-to-peer file sharing by Senate Majority Leader Harry Reid (D-NV) was withdrawn. It would have given the Secretary of Education authority to impose fines, including loss of Title IV eligibility, on the 25 institutions said by the entertainment industry to have the highest numbers of illegal downloads on their campus computer networks. 

In lieu of the Reid amendment, language was inserted into the manager’s package by Kennedy that asks campuses to disclose to students what their policy is on copyright infringement and to make them aware of the consequences of illegal downloading.

The Higher Education Act of 1965 was created to strengthen the educational resources of nation’s colleges and universities and to provide financial assistance for students in postsecondary and higher education. The legislation provides funding authorization for programs and activities in four main categories: student financial aid, support services to help students complete high school and enter and succeed in postsecondary education, aid to strengthen institutions, and aid to improve K-12 teacher training at postsecondary institutions.

Congress has reauthorized HEA seven times. The current authorization expired on Sept. 30, 2004 but has been extended multiple times in the past three years while Congress dealt with other issues.

In the past week, Congress has passed FY 2008 budget reconciliation legislation as well as the long-delayed HEA reauthorization bill. The House and Senate passed different versions of budget reconciliation that would cut subsidies for student loan lenders and use the savings to increase grants to low income students. The difference between the bills must be ironed out by a conference committee of members from both chambers before the start of the new federal fiscal year on Oct. 1. 

With today's action, the Senate must now wait for the House Committee on Education and Labor to take up HEA reauthorization, which is expected sometime this fall.

Links to ACE letters on the Senate bill:

Letter to the Senate in Support of the Higher Education Amendments of 2007 (S. 1642) (PDF; 33 KB)

Letter to the Senate Opposing the Coburn Amendment to the Higher Education Amendments of 2007 (S. 1642) (PDF; 44 KB)

Letter to the Senate Opposing the Durbin Textbook Amendment to the Higher Education Amendments of 2007 (S. 1642) (PDF; 43 KB)

Letter to the Senate Opposing the Reid Filesharing Amendment to the Higher Education Amendments of 2007 (S. 1642) (PDF; 39 KB)

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