October 2007
Federal Legislative Update
Federal Legislative Update
The College Cost Reduction Act
Last month, Congress approved comprehensive legislation that provides assistance to students in the form of increased Pell Grant awards, as well as relief from certain costs related to student loans. Supporters of the legislation, which was signed by President Bush on September 27, describe the legislation as the largest infusion of money into the Pell Grant program ever. The increased costs of these changes will be paid for through reduced payments to private lenders.
Last month, Congress approved comprehensive legislation that provides assistance to students in the form of increased Pell Grant awards, as well as relief from certain costs related to student loans. Supporters of the legislation, which was signed by President Bush on September 27, describe the legislation as the largest infusion of money into the Pell Grant program ever. The increased costs of these changes will be paid for through reduced payments to private lenders.
Highlights of the law include:
- An increase in the Pell Grant maximum annual award from the current $4,310 to $4,800 in 2008; and to $5,400 by 2012. At the start of 2007, the maximum grant stood at $4,050, an amount that had not changed in five years.
- Cuts in the federally-supported student loans program interest rates from the current 6.8 percent to 3.4 percent over the next five years.
- Allowing borrowers to cap monthly payments at 15 percent of their income.
- Creation of a loan forgiveness program, after ten years of payments, for graduates who work in certain public sector jobs, including 501(c-3) organizations.
- Creation of a new grant program for students in teacher preparation programs.
- Simplification of the Free Application for Federal Student Aid (FAFSA).
- Setting PLUS loan rates through a system of state-by-state auctions.
- Improvements to deferment options for individuals with student loans who serve in the military.
The effective dates of these provisions of the law vary. Further information is available through the Canisius Government Relations office.
America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act (America COMPETES)
In July, Congress completed action and President Bush signed legislation designed to expand federal support for science, technology, engineering and math education programs. The bill establishes grant programs to help educate current and future teachers in the areas of science and math. The legislation further expands federal support for scientific research.
Reauthorization of the Higher Education Act (HEA)
Since 2003, Congress has attempted to approve a reauthorization of the Higher Education Act, which sets national policy for colleges and universities. Portions of HEA that relate to financial assistance for students have been addressed in the College Cost Reduction Act noted above.
Since 2003, Congress has attempted to approve a reauthorization of the Higher Education Act, which sets national policy for colleges and universities. Portions of HEA that relate to financial assistance for students have been addressed in the College Cost Reduction Act noted above.
The most recent effort comes from Senator Edward Kennedy (D-MA). Kennedy’s bill, which was approved by the Senate 95-0, includes the following:
- Drawing attention to colleges whose cost increases outstrip peers.
- Promoting innovative models in teacher preparation.
- Retaining a college’s right to make its own decisions about what transfer credits it may accept from another school.
The House Education Committee, under the leadership of Representative George Miller (D-CA), is still working on their version of the legislation. While it is suggested by all involved that this may be the year when the HEA reauthorization is approved, skeptics point out that similar predictions have been presented more than once during the past four years.
The 2008 Budget
Congressional action has begun for approval of a 2008 federal budget. To date, all twelve appropriations bills that must be approved by Congress have moved through the full House. The Senate has approved its versions of four of the bills. Conferences committees to work out differences between versions have begun to meet.
Congressional action has begun for approval of a 2008 federal budget. To date, all twelve appropriations bills that must be approved by Congress have moved through the full House. The Senate has approved its versions of four of the bills. Conferences committees to work out differences between versions have begun to meet.
The 2008 federal fiscal year began on October 1. A continuing resolution has been approved to keep the federal government in business while final action is taken on the budget.
The New York State Commission on Higher Education
Governor Eliot Spitzer’s new Commission on Higher Education will “help identify innovative, cutting-edge ideas and necessary improvements that will improve the quality of education we deliver and make New York’s higher education system a world class institution.” Public and private institutions are represented on the panel. Assemblywoman Crystal Peoples (D-Buffalo) is also a member.
The commission, which was created in June, will issue a preliminary report in December. Its recommendations may be included in the Governor’s proposed 2008-2009 state budget, which he will present in January.
The Canisius College Government Relations Newsletter is a service of the College Relations Division. John J. Hurley, executive vice president and vice president for college relations; Debra S. Park, associate vice president for public relations; Kenneth C. Kruly, director of government relations (716-888-3755).