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House Passes Need-Based Educational Aid Act of 2007

May 1, 2008

On Wednesday, the House of Representatives passed the Need-Based Educational Aid Act of 2007 (H.R. 1777) by voice vote. The American Council on Education (ACE) sent a letter to every member of the House to outline the higher education community’s support for the legislation. 

H.R. 1777, sponsored by Rep. William Delahunt (D-MA), would permanently renew a provision of existing law (known as Section 568) that allows qualifying colleges and universities to establish common approaches for awarding non-federal, institutional student aid without violating anti-trust laws.

Section 568 is intended to increase access to higher education by promoting financial aid policies that support the largest number of financially needy students. It does not permit discussion or comparison of institutional awards for individual students. This provision has been renewed twice before–once in 1997 and again in 2001–and in both instances, it passed the Judiciary Committee by voice vote and the full House under suspension.

“Without explicit statutory permission, colleges and universities would be reluctant to have discussions on these issues, despite Congress’ earlier affirmation that permitting institutions to establish and agree upon common financial aid principles and procedures improves access to higher education,” writes ACE Senior Vice President Terry Hartle, on behalf of seven higher education associations, including ACE. “In addition, families of aid applicants would face widespread confusion, as institutions could no longer agree upon common principles and standards for assessing financial need.”

The bill will now move to the Senate for consideration.

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