Congress has passed the reauthorization of the Higher Education Act, setting policy for student aid for the next 6-10 years.

While there are some good useful changes, most alarming is the massive increase in reporting requirements. According to Senator Lamar Alexander (R-TN), former college president and US Secretary of Education , the bill imposes “too many regulations on schools and undermines the autonomy that has made American education so successful…the Senate has spewed forth a well-intentioned contraption of unnecessary rules and regulations that waste time and money that ought to be spent on students and improving quality…this bill more than doubles (the list of regulations), creating 24 new categories and 100 new reporting requirements.”

Improvements from previous versions

Accreditation – The compromise language is agreed upon by accreditation agencies and colleges.

Transfer of Credit – no longer dictates policies, but requires colleges to publish policies and the articulation agreements the colleges have.

Net Tuition information to students – previous version required this in admissions materials. It is now limited to net tuition for federally aided students and must go on the Secretary’s web site.

Price Controls/Watch Lists – Previous versions veered into controlling the colleges’ tuition. The current version requires colleges (if they appear on the “top 5% lists”) report to the Secretary about the portions of the budget causing prices to increase. If the college appears two or more years it must report progress in reducing costs.

Code of Conduct – Previous versions prohibited board service or charitable gifts by banks. The current version deletes those provisions.

Useful Changes to Student Aid Programs (contingent upon funding)

Pell Grants – Increases maximum and minimum grant. Makes the grant available year round. Limits availability (to 18 semesters!), and makes the maximum grant available to students if a parent died while performing military service in Iraq or Afghanistan.

Loans -- Expands loan forgiveness in areas of national need to include foreign language specialists, child welfare workers, school counselors, STEM employees, physical therapists, occupational therapists, school administrators, etc.

• Maintains school-as-lender but requires annual audits.
• Increases loan limit for Perkins loans and expands loan forgiveness in Perkins loans to include firefighters, faculty at Tribal colleges, librarians, or speech pathologist.

Graduation Rates – Allows colleges with students who take time out from school to serve on a church mission (or other limited circumstances) to use an alternative method for calculating graduation rates.

Other Changes

Students with Intellectual Disabilities - makes student aid available to students with cognitive disabilities.

Expands programs for minority serving institutions.

Too many new reporting requirements

Cost – While much improved, the bill includes extensive “watch” lists (effective July 2011 but looking back at the past three years, so the base year is 2008-2009)

Consumer Information – Expands information collected on IPEDS

Safety – prompt reporting of incidents, test and publicize emergency response and evacuation procedures, publish a fire safety report including statistics and description of systems on campus, establish a missing person notification policy.

For more information:

Committee Messaging
Full Summary
Statement of Managers
Conference Report

ICW works closely with the National Association of State Executives and the National Association of Independent Colleges and Universities (NAICU) to formulate and advocate for supportive higher education public policy. For information about ICW's federal public policy, contact:

Violet Boyer
President and CEO
Office: 206.623.4494
Cellular: 206.714.2402