Government Relations Archive

Reauthorization of the Higher Education Act

The second session of the 110th Congress began recently and it appears as if the House will be bringing up its version of the reauthorization of the Higher Education Act sometime during the week of February 4.

These are the issues that independent colleges and universities are most concerned about in the House’s version of the bill:

College Cost – the bill would establish the Higher Education Price Index and would create a federal Price Increase Watch List for any college whose sticker price exceeds a federally-prescribed pricing index.

The National Association of Independent Colleges and Universities (NAICU) reports that it is unlikely any modifications will change this provision of the bill.

Accreditation and Student Learning Outcomes – the bill’s language mirrored the language in the Senate bill with colleges setting their own standards for student learning. This protective language was eliminated in the House bill at the request of certain accreditors.

NAICU reports that the accreditors, the Council for Higher Education Accreditation (CHEA), and the higher education associations have agreed on compromise language that, hopefully, will be included in the final House bill.

Teacher Education – the bill would require all colleges in the country to follow several federally-prescribed curriculum elements. This would create a precedent of using a college’s participation in federal student aid programs as a means of prescribing a curriculum in a particular field of study.

NAICU reports that this is driven by No Child Left Behind concerns on accountability and that key members of the House may accept softer language – but not do away with the federal mandate.

Articulation Agreements – the bill would call for the development of statewide articulation agreements and it is unclear if all institutions would be required to participate in them.

NAICU reports that they have been told that the House bill will be modified to include clarifying language acceptable to independent colleges and universities.

Reporting – the bill would add numerous new reporting requirements that would be very costly to colleges. It was recently reported in the Chronicle that one reason the bill contains so many new requirements is that “the renewal of the Higher Education Act is five years overdue. As a result, there is a built-up demand for more reporting and record-keeping.”

NAICU reports that there is “no relief in sight.” The new reporting requirements being proposed are important to the members who developed them and the burden on institutions is simply not a priority.

Last Dollar – the bill would require GEAR UP and three other new federal scholarship programs to be the last grants given in a student’s financial aid package. This means institutional aid will be packaged before these additional dollars are awarded. Not only does this complicate the packaging, but it also allows federal program reviewers to oversee how a college awards its own aid.

NAICU reports that these concerns are being heard and should be addressed in the final House bill.

Other News

Sen. Max S. Baucus (D-MT) and Sen. Charles Grassley (R-IA) who are Chair and Ranking Member of the Senate Finance Committee have sent a detailed letter to 136 institutions requesting information about their endowment spending, financial aid policies, and tuition increases over the past decade. This came about when an annual report was released that showed in FY 2007, college endowments enjoyed their biggest investment gains in nearly a decade.