76-532: Title IV of the Higher Education Act of 1965 (HEA) covers the administration of the United States federal student financial aid programs. American colleges and universities are generally classified with regard to their inclusion under Title IV, such as under the U.S. Department of Education statistics. Title IV was one of eight titles: Title IV contains nine parts that authorize
152-629: A National Teachers Corps. The "financial assistance for students" is covered in Title IV of the HEA. The Higher Education Act of 1965 was reauthorized in 1968, 1972, 1976, 1980, 1986, 1992, 1998, and 2008. The current authorization for the programs in the Higher Education Act expired at the end of 2013 but has been extended through various temporary measures since 2014. Before each re-authorization, Congress amends additional programs, changes
228-500: A broad array of programs and provisions to assist students and their families in gaining access to and financing a postsecondary education. Programs authorized under this title are the primary sources of federal aid supporting postsecondary education. The act is sectioned: This United States federal legislation article is a stub . You can help Misplaced Pages by expanding it . Higher Education Act of 1965 The Higher Education Act of 1965 ( HEA ) ( Pub. L. 89–329 )
304-682: A decade or more as the average student takes 19.4 years. The program is named after William D. Ford , a former member of the U.S. House of Representatives from Michigan . Following the passage of the Health Care and Education Reconciliation Act of 2010 , the Federal Direct Loan Program is the sole government-backed loan program in the United States. The program replaced the earlier Federal Family Education Loan (FFEL) program which issued "guaranteed loans" — loans originated and funded by private lenders but guaranteed by
380-566: A drag on the economy as a whole because of high levels of student debt. One way that has been suggested to help students with loan repayment is to lower interest on balances. U.S. Senator Richard Blumenthal urged, "We must reduce the student loan interest rate back to 3.4 percent immediately, and then even lower, and develop ways for past students to reduce and erase the $ 1 trillion in existing debt. The failure of Congress to act now threatens our all too slow and fragile economic recovery and job creation." Another way to deal with debt to income levels
456-405: A greater overall cost of the loan. Pew Charitable Trusts research highlights the increasing number of student loan borrowers who encounter repayment problems or interruptions. As of October 2018, the number of student loan borrowers in default in the United States was more than 8 million, which equates to about 1 in 5 federal student loan borrowers. The numbers may even be understated because of
532-419: A huge cost to the government, which we now know is true. The estimate was that in the 1990s the defaulted student loans would cost the government at least two to three billion dollars each year. From the graphic 1 above, it is apparent that the number of students entering default has surmounted that estimate. Some believe that the growth of student loan debt is reaching problematic levels. Economists point to
608-406: A large risk the government bears when giving out low-interest rate loans. Delinquency is . It will result in the late payments or missing payments being reported to the credit bureaus and credit scores being adjusted accordingly. and the consequences are much more severe. A borrower is considered to have defaulted when he or she fails to make required payments for 270 days. When a loan is in default,
684-464: A loan repayment metric or a measure of student loan debt compared to earnings of graduates. The agency published its rule in June 2011, estimating that five percent of for-profit programs and one percent of nonprofit and public programs would lose eligibility. The for-profit industry filed a lawsuit to stop the implementation of the gainful employment rule. In 2012, a federal district court affirmed
760-474: A new " income-based repayment " option capped loan repayment at 15% of an individual's discretionary income, while a Public Service Loan Forgiveness promised that some borrowers could forgive student loan balances after ten years of repayment. The student aid formula's income protection allowance was increased, and the interest rate on new student loans was changed to fixed rates from the variable rate. The new law also took action to address problematic practices in
836-550: A no "substantial gainful activity" test, which is the same standard used by the Social Security Administration in determining eligibility for Social Security Disability Insurance (SSDI). The changes took effect on July 1, 2010. Also included in the 2008 revision of the HEOA were provisions requiring action by U.S. colleges and universities to combat illegal file-sharing. Following significant lobbying by
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#1732773039315912-449: A particular institution." The law defines "estimated net price" as the difference between an institution's average total Price of Attendance (the sum of tuition and fees, room and board, books and supplies, and other expenses, including personal expenses and transportation for first-time, full-time undergraduate students who receive aid) and the institution's median need- and merit-based grant aid awarded. Elise Miller, program director for
988-537: A small pilot of income-contingent repayment as part of the direct loan program, which was expanded along with that program the following year. The problem of consumer abuses by for-profit colleges was a major topic in hearings leading to the bipartisan 1992 reauthorization bill. In the wake of skyrocketing student loan defaults, an 18-month investigation by the Senate Permanent Subcommittee on Investigations had concluded in 1991 that
1064-411: A student for any additional Title IV federal student aid in the future. In many instances, the payment of federal student loans will cover any interest accruing between payments. However, if interest accrues between payments of the loan then the lender can capitalize the accrued interest by increasing the principal balance of the loan. The growing principal balance results in higher interest payments and
1140-543: A system of triggers for state-level reviews of colleges by State Postsecondary Review Entities or SPREs. At the urging of nonprofit colleges the SPRE provisions were repealed in 1995 by the newly elected Republican Congress . The Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) was first authorized under the Higher Education Amendments of 1998. Also in the amendments of 1998
1216-535: Is a disincentive for students to save is widely cited. The government is issuing cheap loans that are widely available and more than ever, students are attending expensive schools and are less worried about their ability to repay the debt. Students are not incentivized to attend schools with lower tuition. This is exacerbated by the fact that federal financial aids provides less support for students going to community college. They are low cost institutions to begin with but are disadvantaged by both state and federal aid. Data
1292-544: Is called the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. The act aims to simplify the federal financial aid process and expand federal work-study programs. It would also repeal two Obama-era programs - "gainful employment" and " borrower defense " - aimed at preventing financial exploitation of undergraduates, as well as bar their readoption. According to Committee spokesman Michael Woeste, "the reforms within
1368-408: Is permitted." During this reform period of 2008, Title VI of the HEA was reviewed. Title VI provides federal funds to 129 international studies and foreign language centers at universities nationwide. Title VI supplies grants for international language studies, business and international education programs as well as international policy. After being reauthorized in 2008, the Higher Education Act
1444-452: Is responsible for managing the outstanding loan portfolio, reported that at the end of 2009 there were $ 1.5 trillion of loans outstanding which is spread out over 42.9 million unduplicated recipients. In 10 years, the loan program experienced 230% growth in the loan portfolio and 130% growth in the loan recipients. Student loan debt in 2019 is the highest it has ever been. According to the latest loan debt statistics, student loan debt has become
1520-677: Is the Aid Elimination Provision, which prevents students with drug charges from receiving federal aid for colleges and universities. This is where question 31 on the FAFSA forms originates. The question asks whether the student has ever been convicted of a drug crime while receiving federal financial aid. This statutory provision was upheld by the United States Court of Appeals for the Eighth Circuit in
1596-609: Is to require higher learning accountability. "Only recently have government regulators demanded accountability for the educational benefits universities produce and the efficiency with which they produce them: What does college cost? How many students are admitted? How many graduate? How long does it take them to graduate? How many get good jobs? At the same time, accrediting bodies have changed their measurement emphasis from inputs and activities to outcomes...Students want not just high-paying jobs, but an acceptable ratio of starting salary to student debt. Governments likewise care not just about
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#17327730393151672-553: Is wiped out, the rate at which it grows would remain the same. These plans would also have unintended consequences, demonstrating that future debt could be forgiven as well. The Stafford Student Loan Program is a subsidized loan that has been criticized for its lack of reform. Its structure has not changed much since its creation in 1965. The problems are that it is too costly, a wasteful subsidy for middle-income students, acts as disincentive for students to save, and providing an incentive for colleges to raise tuition. The issue that it
1748-470: The GI Bill program, provided support only to public or nonprofit colleges and universities, and the financial aid was restricted to academic degree programs. For vocational training, including at accredited for-profit schools, Congress in 1965 established a separate student loan program for education "designed to fit individuals for useful employment in recognized occupations." Subsequent amendments merged
1824-682: The Motion Picture Association of America (MPAA) and Recording Industry Association of America (RIAA), the additions to the HEOA of 2008 included requirements that all U.S. colleges and universities (1) release an annual disclosure to students regarding copyright laws and associated campus policies, (2) a written plan, submitted to the Department of Education, to combat copyright abuse using one or more technology-based deterrents, and (3) an offer to students of alternatives to illegal downloading. Significant controversy surrounded
1900-681: The Omnibus Budget Reconciliation Act of 1993 , although in 1994 the 104th Congress passed legislation to prevent the switch to 100% direct lending. Funding for new direct loans in the Federal Direct Student Loan Program increased from $ 12.6 billion in 2005 to $ 17.8 billion in 2008. President Barack Obama organized all new loans under the Direct Loan program by July 2010. The switch to 100% Direct Lending effective July 1, 2010
1976-837: The United States Department of Education 's Integrated Postsecondary Education Data System ( IPEDS ), stated the idea behind the requirement: "We just want to break down the myth of sticker price and get beyond it. This is to give students some indication that they will not [necessarily] be paying that full price." The template was developed based on the suggestions of the IPEDS' Technical Review Panel (TRP), which met on January 27–28, 2009, and included 58 individuals representing federal and state governments, post-secondary institutions from all sectors, and association representatives, and template contractors. Mary Sapp, assistant vice president for planning and institutional research at
2052-676: The Education Subcommittee of the Senate Committee on Labor and Public Welfare held numerous hearings. Based on the recommendations of university administrators, educators, and student aid officers, a new bill was introduced: H. R. 9567. It was passed by the House of Representatives on August 26, and the Senate passed the bill on September 2. In signing the Higher Education Act of 1965 into law, President Johnson described
2128-404: The HEA included the creation of a funding stream for Historically Black Colleges and Universities (HBCUs). The proposal enjoyed bipartisan support. The 1992 reauthorization of the HEA was praised for its bipartisanship, developed in a Democratic congress and signed by a Republican president. The legislation significantly expanded the student loan program by creating an "unsubsidized" version of
2204-481: The Higher Education Act also maintained the requirement that universities must make an effort to register students to vote. A 2013 Dear Colleague letter from the U.S. Department of Education stated that universities "must make the voter registration forms widely available to [their] students and distribute the forms individually to [their] degree or certificate program students who are physically in attendance at [their] institution. Distribution by regular or electronic mail
2280-548: The House of Representatives in February 2008. On August 14, 2008, the Higher Education Opportunity Act (Public Law 110-315) (HEOA) was enacted. It reauthorized the amended version of the Higher Education Act of 1965. This act made major changes in student loan discharges for disabled people. Previously, to qualify for a discharge, a disabled person could have no income. This has been changed to
2356-613: The PROSPER Act are necessary to provide students with a high-quality education and fix a system that has not been serving their needs." Some concerns have been raised by advocacy groups about how the PROSPER Act would affect LGBTQ students. According to the Human Rights Campaign, "The PROSPER Act contains several provisions that would allow for the use of religion to justify otherwise prohibited discrimination that could negatively impact LGBTQ students." Additionally,
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2432-413: The PROSPER Act includes a weaker version of the provision requiring universities to increase student voter registration, a requirement present in the Higher Education Act since 1998. Critics worry that this change will lead to lower youth turnout in elections, as voter turnout is already historically lowest among young voters. The original 1965 version of the HEA, because of for-profit school abuses in
2508-546: The Secretary of Education to grant waivers or relief to recipients of federal student loan programs under the HEA "in connection with a war or other military operation or national emergency." A budget reconciliation bill signed into law in September 2007 included significant changes to HEA financial aid programs. In addition to increasing the maximum Pell Grant award and reducing interest rates on subsidized student loans,
2584-454: The Senate version of the bill, S. 600. The bills sought to create an advisory council to review teacher training programs and to create a National Teacher Corps , which would recruit teachers to serve in low-income areas and train teachers through internships. Other provisions of the bills included financial aid, scholarships, work-study, and library enhancements. Throughout 1965 numerous hearings were held by Special Subcommittee on Education, and
2660-566: The U.S. Department of Education now originate under the FDSLP. Most of the growth in FDSLP loan portfolio balances can be attributed to the number of new loans, as it is now the sole government program for student loans. Another contributor to the rapid escalation in loan balances is due to the cost of higher education increasing rapidly, faster than inflation. Students are spending and borrowing more to finance their higher-priced higher education. Default and delinquency are increasingly common and are
2736-502: The United States while Senator Elizabeth Warren proposed canceling $ 640 billion of the debt. Both have goals to make public university tuition free, reducing the need for borrowing. According to the Department of Education, 45% of student loans are used to attend public colleges and universities. The department also reports that 40% of loans are taken out to attend graduate or professional school, meaning most loans are taken out for post-graduate education or private schools. So even if all debt
2812-559: The University of Miami, served as the panel's chair. She described the mandate's goal as "to provide prospective and current undergraduate students with some insight into the difference between an institution's sticker price and the price they will end up paying." The TRP faced the difficult challenge of creating one tool that could be used by a wide variety of institutions – from small, for-profit career schools to major research universities – while balancing simplicity for users. To meet
2888-494: The act, along with the Elementary and Secondary Education Act , as "keystones of the great, fabulous 89th Congress" that would spread "the roots of change and reform" throughout the nation. The act contains eight sections or titles. Before 1976 student loans were dischargeable in bankruptcy like other unsecured loans. An undue hardship test was introduced for federally insured loans under five years. The 1986 amendments to
2964-442: The act. On July 14, 2023, President Biden announced he would use the Higher Education Act to relieve $ 39 billion in student loan debt, which he says is "legally sound" while warning "it's going to take longer". Federal Direct Student Loan Program The William D. Ford Federal Direct Loan Program (also called FDLP , FDSLP , and Direct Loan Program ) provides "low-interest loans for students and parents to help pay for
3040-597: The basis for transparency lists; a report on the College Navigator Web site the institutional net price of attendance for Title IV aid recipients by income categories; and for the U.S. Department of Education to develop multi-year tuition and required-fees calculator for undergraduate programs for the College Navigator Web site. The HEOA has been criticized for establishing statutory pricing of federal student loans based on political considerations rather than pricing based on risk. The 2008 reauthorization of
3116-410: The cost of a student's education after high school. The lender is the U.S. Department of Education ... rather than a bank or other financial institution." It is the largest single source of federal financial aid for students and their parents pursuing post-secondary education and for many it is the first financial obligation they incur, leaving them with debt to be paid over a period of time that can be
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3192-552: The day of the election. Institutions receive registration forms from the state after requesting them at least 120 days prior to the voter registration deadline and must make them "widely available" to students. In 2003, much of the Higher Education Act was set to expire. As a result, a number of minority groups united in asking for certain changes. Calling themselves the Alliance for Equity in Higher Education, this group
3268-648: The department adopted a new gainful employment rule, along with broader financial transparency requirements applicable to all colleges. The Higher Education Act has been proposed as a potential way to cancel student loan debt. According to a paper by the Legal Services Center at Harvard Law School and commissioned by Senator Elizabeth Warren in September 2020, the Secretary of Education may be able to cancel student loan debt. Following Biden v. Nebraska (2023), President Joe Biden suggested using
3344-458: The department's authority to adopt the rule but struck down the rule itself because the agency had not provided a justification for the level at which it had set the loan repayment measure. The 2011 rule was proposed at 75 Federal Register 43615 (2010) and finalized at Notice of Final Rulemaking: 76 Federal Register 34385 (2011). The department adopted revised regulations in May 2014 that deleted
3420-501: The face of a constitutional challenge by the ACLU in the case of Students for Sensible Drug Policy v. Spellings . The amendments also included a provision [HEA Section 487(a)(23)] requiring universities to make a good faith effort to encourage voter registration of students on their campuses. This requirement applies only to institutions located in states that require voter registration prior to election day and do not allow registration on
3496-546: The gainful employment regulations, a step completed in July 2019. The repeal was effective on July 1, 2020, but allowed colleges to voluntarily cease compliance immediately. The administration's 2019 repeal of the gainful employment rule has been challenged by 18 state attorneys general, led by Xavier Becerra of California and the American Federation of Teachers. Those two lawsuits allege various procedural defects in
3572-411: The government to create funding for students in graduate programs of universities serving the minority population. Even though the Alliance's request to change the Higher Education Act was heard, significant parts were denied. In 2003, the request for increasing the amount offered in a Pell Grant , to better cover a student's expenses, was denied by the Senate. Still, other issues were corrected. There
3648-417: The government. The FFEL program was eliminated because of a perception that it benefited private student loan companies at the expense of taxpayers, but did not help reduce costs for students. The Federal Direct Loan Program has accumulated a very large outstanding loan portfolio of about $ 1.5 trillion and this number will continue to rise along with the percentage of defaults. A common concern associated with
3724-678: The implementation the rule after the Trump administration delayed its enforcement. The Trump administration later introduced a further complication by misusing gainful employment data for an unrelated purpose, leading the Social Security Administration to stop providing earnings data to the Department of Education. The 2014 rule was proposed at 79 Federal Register 16425 (2014) and finalized at Notice of Final Rulemaking: 79 Federal Register 64889 (2014). In August 2018, Secretary of Education Betsy DeVos proposed to rescind
3800-477: The inclusion of anti-P2P legislation into HEOA of 2008, resulting in a letter from a number of leaders in higher education. The law, for the first time, also required post-secondary institutions to be more transparent about costs and required the nearly 7,000 post-secondary institutions that receive federal financial aid funds (Title IV) to post net price calculators on their websites as well as security and copyright policies by October 29, 2011. As defined in HEOA,
3876-531: The language and policies of existing programs, or makes other changes. In January 1965, President Lyndon Johnson told Congress that higher education was "no longer a luxury but a necessity" and urged Congress to enact legislation to expand access to college. Representative Edith Green of Oregon introduced H. R. 3220 as a bill to "strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary education." Senator Wayne Morse of Oregon introduced
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#17327730393153952-422: The large number of students still in school or within the grace period. As previously mentioned, default consequences are severe and can include damaged credit, ineligibility for future student loans, garnishment of wages, high collection fees, loss of federal income tax refunds or Social Security and prohibition from other federal assistance programs. Additionally, the increasing number of defaults has an impact on
4028-402: The lending industry. Most CCRA provisions took effect on October 1, 2007. With the changes proposed in 2003, the actual Higher Education Act was not reauthorized. Instead, many of its sections were renewed with little radical change. Numerous extensions have followed, with the most recent extension lasting through August 15, 2008. The Senate passed a HEA reauthorization bill in July 2007, as did
4104-482: The loan program was to pilot an income-contingent repayment option. Several versions of the concept had been proposed by both Democrats and Republicans in Congress. Meanwhile, in the presidential campaign, candidate Bill Clinton included it as an element of his National Service campaign, and President Bush indicated support for the concept when he endorsed universal access to loans. The 1992 reauthorization included
4180-459: The loans available to any student, regardless of whether the financial aid formulas determined that they had unmet need. In the 1992 presidential campaign universal access to loans had become a policy supported by both major candidates. The idea of having loans be made directly by the federal government, instead of guaranteeing and subsidizing bank loans, gained currency in the Bush administration as
4256-413: The net price calculator's purpose is "to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. The [net price] calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student's individual net price at
4332-531: The number of graduates but the total cost of producing each graduate." These questions warrant consideration in the future conversations about the Federal Student Loan Program. Another solution to the problem was discussed in the 2020 Presidential Election. Candidates Bernie Sanders and Elizabeth Warren both offered programs for loan forgiveness. Senator Bernie Sanders proposed canceling all $ 1.6 trillion of outstanding student loan debt in
4408-541: The principal and interest are due in full a well as collection costs. The current default rate for the 1.56 trillion total outstanding dollars of debt among 44.7 million borrowers is 11.4%. According to estimates made in 2018 from the Department of Education reports, 40% of borrowers are expected to default on their loans by 2023. Over the average length of repayment which is 19 years, 250,000 students default on their loans each quarter while 1.5 trillion outstanding dollars are still supposed to be paid. Defaulting can disqualify
4484-446: The program is the effect on the economy and repercussions for students that must repay these loans. President George H. W. Bush authorized a pilot version of the Direct Loan program, by signing into law the 1992 Reauthorization of the Higher Education Act of 1965 . The Higher Education Act was passed to give greater college access to women and minorities. President Bill Clinton set a phase-in of direct lending, by signing into law
4560-461: The repayment rate measure identified by the judge and made other adjustments. The result was a rule that affected more programs and colleges since programs that failed the debt burden metrics could no longer retain eligibility by having an adequate repayment rate. Multiple for-profit college associations filed lawsuits to stop the revised version of the rule. On the other side of the issue, a group of state attorneys general sought court action to force
4636-475: The requirement, post-secondary institutions may choose either a basic template developed by the U.S. Department of Education or an alternate net price calculator that offers at least the minimum elements required by law. As part of its cost-transparency measures, the HEOA of 2008 also requires on the College Navigator Web site a report giving the average institutional net price of attendance for first-time, full-time students who receive financial aid. This also forms
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#17327730393154712-556: The rest of the hundreds of millions left to be paid. Unsurprisingly, the states with the largest populations have the largest proportions of debt. California, Florida, Texas, and New York represent more than 20% of all student debt ($ 340 billion). Loan portfolio balances managed by the FSA for the Federal Family Education Loan Program are slowly and steadily shrinking as new loans offered to students by
4788-546: The result of budget reforms. Some George H. W. Bush advisors supported the switch as a way of saving money and simplifying the program, but the White House ultimately opposed the approach. At the insistence of some in Congress, the 1992 reauthorization included a pilot program of direct lending, planting the seed for a full-blown Direct Student Loan Program proposed in Clinton's first year as president. A third change to
4864-491: The second highest consumer debt category behind mortgage debt. The government combats this large outstanding balance with student loan forgiveness which come in several forms, the two most popular being Public Service Loan Forgiveness and Teacher Loan Forgiveness . Looking at Public Service Loan Forgiveness, there are 890,516 borrowers and 41,221 submitted applications, only 423 of these applications were approved. This translated into about $ 12.3 million of forgiven loans, leaving
4940-454: The spring of 2009, the Obama administration announced that it was considering strengthening various consumer protections in higher education, including establishing guidelines about programs eligible under the gainful employment provision of the HEA. After conferring with stakeholders, the department proposed allowing schools to retain access to financial aid as long as programs met either
5016-474: The student loan program, "particularly as it relates to proprietary schools, is riddled with fraud, waste and abuse." The HEA bill adopted a number of reforms that contributed to the closure of hundreds of schools. The changes included cutting off aid at schools with high default rates, prohibiting the use of commission-based sales agents in recruiting and limiting HEA funding to no more than 85 percent of any for-profit college's revenue. The 1992 bill also included
5092-762: The taxpayer. The federal government spent more than $ 600 million in 2016 and projects costs to exceed more than $ 1 billion in the near future. For comparison, a study published in 1997 that draws back from the 1980s established that one-fifth of undergraduates borrow in the Stafford Loan previously known as the Guaranteed Student Loan Program. Freshmen could only borrow $ 2625, $ 3500 for sophomores, and $ 5500 for each year thereafter without collateral or credit. Now Freshmen can borrow $ 5500, Sophomores $ 6500, and juniors $ 7500. The study predicted that students failing to repay those loans would be
5168-428: The vocational program into the HEA, allowing for-profit schools access to HEA financial aid funds, but only for programs that prepare students for "gainful employment in a recognized occupation." An Obama administration effort to use student loan and graduate earnings data to clarify the scope of eligibility, particularly at problematic for-profit colleges, is commonly referred to as the "gainful employment rule." In
5244-646: The way the regulation was repealed. The 2019 rule was proposed at 83 Federal Register 40167 (2018) and finalized at Notice of Final Rulemaking: 84 Federal Register 31382 (2019). The department began the process of re-instituting a gainful employment rule in December 2021, holding a set of negotiating sessions with stakeholders in 2022. In early 2023 the department published a noticed seeking input on metrics that could be used to identify low-financial-value programs in postsecondary education (beyond those vocational programs subject to gainful employment). In fall 2023
5320-399: Was a Labour Party promise in the 2005 general election. There are four types of direct loans: Currently, there are $ 1.2 trillion in principal and interest on direct loans remained outstanding (borrowed by 34.5 million individuals). At the end of 2019, there were $ 657 billion in outstanding Direct Loan program loans for 32.1 million recipients. The Federal Student Aid office (FSA), which
5396-577: Was a section passed by the House that did allow more funds to go to institutions in order to keep them current, and a grace period for colleges asking for more loans was eliminated. So, if more funding were needed, minority institutions would not have to wait. Also in 2003, the Higher Education Relief Opportunities For Students Act (sometimes referred to as the HEROES Act) was passed, enabling
5472-609: Was collected by the National Postsecondary Student Aid Study (NPSAS) and the results of the study revealed that the percentage of lower-income students receiving federal aid awards significantly favored private proprietary and non-profit 2-year students and institutions. The average federal grant allocation to students attending public community colleges was 49% lower than federal awards granted to private baccalaureate institution students. Also, only one in three public community college students from
5548-891: Was enacted by the Health Care and Education Reconciliation Act of 2010 . In 1940, only about 500,000 Americans attended college, but by 1970 that number was near 7.5 million and now in 2018 that number is estimated to be around 14 million. Since 1970, family incomes for 80% of Americans have failed to make inflation-adjusted gains. With college costs skyrocketing, the lack of wage increases forced most students to rely on student aid and student loans. In comparison, other countries have also experimented with government-sponsored loan programs. New Zealand, for instance, now offers 0% interest loans to students who live in New Zealand for 183 or more consecutive days (retroactive for all former students who had government loans), who can repay their loans based on their income after they graduate. This program
5624-579: Was legislation signed into United States law on November 8, 1965, as part of President Lyndon Johnson 's Great Society domestic agenda. Johnson chose Texas State University (then called " Southwest Texas State College "), his alma mater , as the signing site. The law was intended "to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education". It increased federal money given to universities, created scholarships, gave low-interest loans for students, and established
5700-915: Was made up of "the American Indian Higher Education Consortium , the Hispanic Association of Colleges and Universities , and the National Association for Equal Opportunity in Higher Education, an advocacy group for historically black colleges and universities , [and they] presented their joint recommendations for the reauthorization of the Higher Education Act." The Alliance aimed to help minority students enter fields where they seemed to be underrepresented and to give incentives to minorities to enter these programs. These incentives included more lenience on loan collection and full government funding for minority education. The Alliance also called for
5776-540: Was set to expire in 2013, but was re-extended to allow Congress time to work on the next reauthorization. Further extensions followed, without major amendments to the HEA. In December 2017, House Republicans announced that they had finalized an overhaul of the act, authored primarily by Representative Virginia Foxx of (R - N.C.), the chairwoman of the House Committee on Education and the Workforce. The new bill
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