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Posted by Jonathan Nurse on November 18, 2009 at 3:11 pm 

Senate Foreign Relations Committee Chairman John Kerry (D-MA) announced this week that a climate bill will not likely emerge before the spring of 2010. The announcement confirms that at least 1 of 3 (and likely all 3) of President Obama’s top legislative initiatives for 2009 will slip into 2010 -the other two being health care and student aid reform. Some proponents of the three pieces of legislation hoped to move to completion this year, as to avoid political considerations made by the 2010 mid-term election season. The cap-and-trade climate legislation, introduced by Senator Kerry and Senator Boxer (D-CA), initially drew support from accross the aisle; as Senator Lindsay Graham (R-SC) came out in support of the effort. However, since then, the bill has garnered little bipartisan support; passing the Senate Energy and Public Works Committee without Rebuplican support on the panel and after a boycott of the mark-up. At present, it appears that Senator Kerry is trying to put together a compromise that will garner the 60 votes necessary to break a filibuster; much the same tactic that is being employed by Majority Leader Reid in advancing a health-care overhaul.

Given that the Senate companion bill to the House Student Aid and Fiscal Responsibility Act (SAFRA) has been linked to the passage of health care reform, student aid reform remains on hold. Leaders on the Hill have indicated that both chambers will likely be in session until the third full week of December.

Posted by Jonathan Nurse on October 14, 2009 at 10:45 am 

Yesterday, 10/13/09, the Senate Finance Committee approved a health reform package on a largely party-line vote of 14-9, with only Senator Olympia Snowe (R-ME) crossing the partisan divide. The vote in Senate Finance was the last of the five House/Senate committee (3 House committees, 2 Senate Committees) votes before consideration by the chambers.  Leadership and select members of the committees of jurisdiction will need to work together to merge bills that have been produced. In the Senate, the reform package will need to clear 60 votes to avoid a filibuster, while in the House only a simple majority is needed. At present, a public insurance option appears to be the major point of contention between the more conservative version of reform produced by the Senate Fiance Committee  and legislation advanced by the Senate HELP Committee and the House. After bills pass the Senate and House, differences will again need to be worked out between the chambers so that a single bill can be sent to the President.

Passage of health care reform may be linked to the student aid overhaul that was approved in the House over the summer. If Senate Democrats are unable to pull together the 60 votes necessary to pass health care reform, they may tie the legislation to the student aid bill in the form of a budget reconciliation package that would only require a simple majority to pass. As a result, the Senate companion to the House (H.R. 3221) student aid bill is currently awaiting further developments on the health care reform front. The University of Washington, and much of the higher education advocacy community, is using the extra time allotted for the student aid bill to seek some improvements in the legislation.

Posted by Jonathan Nurse on September 17, 2009 at 2:58 pm 

Today, the full House of Representatives passed the Student Aid and Fiscal Responsibility Act of 2009 (HR 3221) by a 253-171 vote. The bill utilizes savings from the elimination of the Federal Family Education Loan Program (FFELP) in favor of 100% college/university participation in the Direct Loan program. The legislation would index future Pell increases to the Consumer Price Index plus 1%. Financial institutions that provide student loans have fought the elimination of FFELP, as it essentially removes them from the federal student aid market. Funding recouped from the elimination of FFELP will also fund much of President Obama’s college access and persistence plan, as well as a number of additional initiatives.

The University of Washington’s Office of Student Financial Aid, and Office of Federal Relations have been active in providing members of the Washington Congressional delegation with feedback on HR 3221. There remains room to make improvements on the House bill, particularly in its provision of a College Access and Completion Fund, where funding provided to states could result in increased regulatory control by states over institutions of higher education. The legislation is now being worked on the Senate, and is expected to receive full consideration later this fall or early in 2010.

Full Summary of HR 3221

Posted by Jonathan Nurse on September 10, 2009 at 6:18 am 

As Congress returned from August recess earlier this week, student aid advocates immediately focused their efforts on the Senate. In the coming weeks, the Senate will likely consider a companion bill to the House Student Aid and Fiscal Responsibility Act (HR 3221) -which passed easily in the House Education and Labor Committee on July 21st. The House legislation would implement much of President Obama’s student loan proposal, most notably ending the Federal Family Education Loan Program (FFELP) in favor of 100% participation in the Direct Lending (DL) program in order to realize savings that can be used to bolster the Pell Grant program. The House bill was set on a course that would allow for it to be considered as part of a budget reconciliation process or the normal legislative process. The budget reconciliation process may also be utilized for health care reform, as it allows a simple majority (51 votes) to pass legislation in the Senate as opposed to a super-majority of 60 votes. Reconciliation instructions require the House and Senate education committees to report reconciliation bills by Oct. 15. If the deadline is missed, leaders will have to utilize the normal legislative process. 

Although the legislation has traveled a relatively smooth path in the House, the outcome in the Senate is less certain. Some members with FFELP lenders in their states have balked at the Administration’s plan and are exploring alternatives. As a Direct Lending school with a large population of Pell grant students, the UW is actively pushing for legislation that will enable increases in mandatory spending for Pell.

In related news, Senator Harkin (D-IA) will take over the Senate Health, Education, Labor and Pensions (HELP) Committee that was previously chaired by former Senator Ted Kennedy. Despite some concerns about the President’s proposal to end FFELP, Senator Harkin has long been viewed as a reliable advocate for student aid.

Posted by Jonathan Nurse on July 31, 2009 at 12:27 pm 

Tomorrow, Saturday August 1st, the Post-9/11 GI Bill goes into effect. It has been dubbed the most extensive educational assistance program for veterans since the original GI Bill was signed into law in 1944.  The new bill provides education benefits for servicemembers who have served on active duty for 90 or more days since Sept. 10, 2001. These benefits are tiered based on the number of days served on active duty, creating a benefit package that gives current and previously activated National Guard and Reserve members the same benefits as active duty servicemembers.

The UW Office of Federal Relations will be closely monitoring implementation of the program, as members of the WA Congressional delegation have articulated an interest in helping to address policy challenges in this area -as they arise.

Overview of the Post-9/11 GI Bill

Posted by Jonathan Nurse on July 22, 2009 at 10:34 am 

Yesterday, the House Education and Labor Committee passed HR 3221, Student Aid and Fiscal Responsibility Act of 2009, which was introduced last week. The legislation eliminates the Federal Family Education Loan (FFEL) program and utilizes the $87 billion saved to fund increased Pell grant levels for students (indexed to inflation plus 1%, but subject to appropriations), as well as a number of other K-12/community college/ 4 year higher education programs. A provision of the legislation, strongly opposed by the higher education community, to eliminate the graduate and professional student loan subsify was stripped from the legislation.

The Senate is expected to consider its own version of the legislation after the August congressional recess.

Student Aid and Fiscal Responsibility Act of 2009 Summary

Posted by Jonathan Nurse on July 15, 2009 at 1:02 pm 

Today, the House of Representatives will introduce a budget reconciliation package designed to achieve components of the President’s agenda. Budget reconciliation is a special procedure, not subject to a fillibuster in the Senate, that was intended to serve as a deficit reduction tool by forcing spending cuts or tax increases to meet the targets set forth at the beginning of an appropriations cycle in a budget resolution.

The legislation, The Student Aid and Fiscal Responsibility Act of 2009, advances President Obama’s goal of making the Pell Grant program an entitlement -not subject to annual appropriations debates. As has been discussed on this site, the Pell Grant entitlement would be funded by eliminating the Federal Family Education Loan program (FFEL)-which utilizes banks and guarantee agencies- in favor of the Direct Lending (DL) program. Financial institutions, Members of Congress with a heavy presence of financial institutions in their states/districts, and many conservatives have been against the elimination of the FFEL program. Just a few weeks ago, it appeared likely that a compromise would be stuck that fell short of a full Pell entitlement. However, the legislation offered today supports a Pell entitlement and a number of other student aid items.

Provisions of the bill:  Read more

Posted by Jonathan Nurse on June 26, 2009 at 1:06 pm 

**The following press release was made available by the Department of Education on June 24th**

The Obama Administration today announced a shorter, simpler, and more user friendly Free Application for Federal Student Aid (FAFSA) that will make it easier to apply for college financial aid. The changes—some of which are already in place while others will be phased in over the next few months—are designed to increase postsecondary enrollment, particularly among low- and middle-income students.

“President Obama has challenged the nation to once again have the highest percentage of college graduates in the world,” said Arne Duncan, U.S. Secretary of Education. “To do that, we need to make the college-going process easier and more convenient, and to send a clear message to young people as well as adults that college is within their reach. Simplifying the financial aid process is an important step toward reaching that goal.” Read more

Posted by Jonathan Nurse on June 17, 2009 at 12:25 pm 

This week, the Congressional Budget Office (CBO) released an analysis of the fiscal impact of President Obama’s FY10 Budget Request. The analysis looks at the budget request broadly, as well as focuses in on some of President Obama’s major proposals on health care and student aid.

Of particular note, CBO revised down — from $94 billion to $87 billion — an earlier estimate of the savings that would be realized from eliminating the Federal Family Education Loan Program (FFELP) in favor of the Direct Lending program. The new estimate jeopardizes the President’s proposal to use savings from FFELP to fund a Pell grant entitlement. There already appears to be little stomach in Congress for the creation of another entitlement program. House Appropriations Chairman David Obey (D-WI) has articulated that he is reluctant to create a new entitlement program while simultaneously trying to convince the American people that the majority in Congress is fiscally responsible. Nonetheless, a permanent Pell grant remains possible and at a minimum, funding recouped from the elimination of FFELP would be put towards increased Pell grant levels for students. It should be noted that the financial sector, and many in Congress, are pushing to maintain the FFELP program and the role of banks and guarantee agencies in the administration of federal student loans.

CBO: An Analysis of the President’s Budgetary Proposals for Fiscal Year 2010

Posted by Jonathan Nurse on June 17, 2009 at 7:41 am 

**UPDATE** The new Ranking Member on Education and Labor is John Kline (R-MN).

Earlier this week, it was announced that Rep. Howard P. (Buck) McKeon (R-CA), the Ranking Member on the House of Representatives Education and Labor Committee, is leaving the panel to take the same position on the House Armed Services Committee. McKeon’s departure is particularly significant because the Education and Labor Committee is considering President Obama’s proposal to eliminate the Federal Family Education Loan Program (FFELP) in favor of a direct lending program that would cut banks and guarantee agencies out of the student loan process and result in savings that would be utilized to make the Pell Grant an entitlement. Congressman McKeon has long been viewed as a defender of financial institutions. Next week, the House Republican Steering Committee will meet to chose a new Ranking Member for the Education and Labor Committee.

Representatives Cathy McMorris Rodgers (R-WA), Judy Biggert (R-IL) and John Kline (R-MN) are seen as the finalists for the Education and Labor Committee Ranking Member spot. McMorris Rogers’ position on the steering committee that will make the decision is likely to boost her chances.

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