A Primer on the Higher Education Act (HEA)

Congressional research reportMar 25, 2008

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A Primer on the Higher Education Act (HEA)

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March 25, 2008

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RL34214

CRS Report for Congress

Prepared for Members and Committees of Congress

A Primer on the Higher Education Act (HEA)

Summary

The Higher Education Act of 1965 (HEA) as amended, authorizes the federal government’s major

federal student aid programs (Title IV), as well as other programs which provide institutional aid

and support (Titles II, III and V). In addition, the HEA authorizes services and support to lessadvantaged students (select Title IV programs), and to students pursuing international education

and certain graduate and professional degrees (Titles VI and VII). The programs authorized by the

HEA are administered by the U.S. Department of Education (ED), and made available an

estimated 70% ($94 billion) of all federal, state, and institutional aid awarded to postsecondary

students in 2005-2006 (excluding tax benefits).

The principal objective of the HEA is to expand postsecondary education opportunity, particularly

for low-income individuals, and to increase affordability for moderate income families as well.

The heart of the legislation is its student aid programs authorized under Title IV, which provide

student aid in the form of grants, loans, and work-study assistance. There are seven titles of the

HEA that authorize numerous programs and provisions designed to provide assistance to

postsecondary students and institutions.

This report provides a brief overview of major provisions of the HEA. It is organized by title and

part of the act. This report will be updated following reauthorization of the HEA.

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A Primer on the Higher Education Act (HEA)

Contents

Introduction ................................................................................................................................1

Overview ....................................................................................................................................1

Title I: General Provisions...........................................................................................................2

Part A: Definitions ................................................................................................................2

Part B: General Provisions ....................................................................................................2

Part C: Cost of Higher Education ..........................................................................................3

Part D: Administrative Provisions for Delivery of Student Financial Assistance.....................3

Title II: Teacher Quality Enhancement ........................................................................................3

Part A: Teacher Quality Enhancement Grants for States and Partnerships...............................4

TEACH Grants ...............................................................................................................4

Part B: Preparing Tomorrow’s Teachers to Use Technology ...................................................4

Title III: Institutional Aid ............................................................................................................4

Part A: Strengthening Institutions ..........................................................................................5

American Indian Tribally Controlled Colleges and Universities.......................................5

Alaska Native and Native Hawaiian-Serving Institutions.................................................5

Part B: Strengthening Historically Black Colleges and Universities .......................................6

Historically Black Graduate and Professional Institutions................................................6

Part C: Endowment Challenge Grant .....................................................................................7

Part D: HBCU Capital Financing ..........................................................................................7

Part E: Minority Science and Engineering Improvement Program..........................................7

Part F: General Provisions.....................................................................................................8

Title IV: Student Assistance.........................................................................................................8

Part A: Grants to Students in Attendance at Institutions of Higher Education .........................8

Subpart 1: Federal Pell Grants.........................................................................................8

Subpart 2: Federal Early Outreach and Student Services Programs ..................................9

Subpart 3: Federal Supplemental Educational Opportunity Grants ................................. 11

Subpart 4: Leveraging Educational Assistance Partnership Program .............................. 11

Subpart 5: Special Programs for Students Whose Families Are Engaged in

Migrant and Seasonal Farmwork ................................................................................ 11

Subpart 6: Robert C. Byrd Honors Scholarship Program................................................ 11

Subpart 7: Child Care Access Means Parents in School ................................................. 12

Part B: Federal Family Education Loan ............................................................................... 12

Subsidized Stafford loans .............................................................................................. 12

Unsubsidized Stafford loans .......................................................................................... 12

PLUS loans................................................................................................................... 12

Consolidation loans....................................................................................................... 13

Part C: Federal Work-Study Programs ................................................................................. 13

Part D: William D. Ford Federal Direct Loan Program ........................................................ 13

Part E: Federal Perkins Loans.............................................................................................. 13

Part F: Need Analysis.......................................................................................................... 14

Part G: General Provisions Relating to Student Assistance Programs ................................... 14

Part H: Program Integrity .................................................................................................... 15

Subpart 1: State Role..................................................................................................... 15

Subpart 2: Accrediting Agency Recognition .................................................................. 15

Subpart 3: Eligibility and Certification Procedures ........................................................ 15

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A Primer on the Higher Education Act (HEA)

Part I: Competitive Loan Auction Pilot Program.................................................................. 16

Part J: Strengthening Historically Black Colleges and Universities and Other

Minority-Serving Institutions ........................................................................................... 16

Title V: Developing Institutions................................................................................................. 16

Part A: Hispanic-Serving Institutions................................................................................... 16

Part B: General Provisions .................................................................................................. 17

Title VI: International Education Programs................................................................................ 17

Part A: International and Foreign Language Studies............................................................. 17

Part B: Business and International Education Programs ....................................................... 18

Part C: Institute for International Public Policy.................................................................... 18

Part D: General Provisions .................................................................................................. 18

Title VII: Graduate and Postsecondary Improvement Programs ................................................. 18

Part A: Graduate Education Programs ................................................................................. 18

Part B: Fund for the Improvement of Postsecondary Education ........................................... 18

Part C: Urban Community Service ...................................................................................... 19

Part D: Demonstration Projects to Ensure Students with Disabilities Receive a

Quality Higher Education................................................................................................. 19

Part E: College Access Challenge Program.......................................................................... 19

Contacts

Author Contact Information ...................................................................................................... 19

Key CRS Staff Members on Higher Education Issues ................................................................ 20

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A Primer on the Higher Education Act (HEA)

Introduction

The Higher Education Act of 1965 (HEA) as amended, authorizes the federal government’s major

federal student aid programs (Title IV), as well as other programs which provide institutional aid

and support (Titles II, III and V). In addition, the HEA authorizes services and support to lessadvantaged students (select Title IV programs), and to students pursuing international education

and certain graduate and professional degrees (Titles VI and VII). The programs authorized by the

HEA are administered by the U.S. Department of Education (ED), and made available an

estimated 70% ($94 billion) of all federal, state, and institutional aid awarded to postsecondary

students in 2005-2006 (excluding tax benefits).1

The HEA was last comprehensively reauthorized by the Higher Education Amendments of 1998

(P.L. 105-244), which expired September 30, 2003. Since the initial expiration of the

authorization, there have been several temporary extensions,2 which authorize the programs and

activities of the HEA through March 31, 2008. Most recently, P.L. 110-198, the Higher Education

Extension Act of 2008, extends the HEA authorization to April 30, 2008.

This report3 provides a brief overview of major provisions of the HEA. It is organized by title and

part of the act. Other CRS reports provide much more detailed discussions and analyses of major

HEA provisions. 4 This report will be updated following reauthorization of the HEA.

Overview

The HEA was initially authorized in 1965 (P.L. 89-329). Since that time, comprehensive

amendment and reauthorization of the HEA has occurred seven additional times. 5 The principal

objective of the HEA is to expand postsecondary education opportunity, particularly for lowincome individuals, and to increase affordability for moderate income families as well. The heart

of the legislation is its student aid programs authorized under Title IV, which provide student aid

in the form of grants, loans, and work-study assistance.

There are seven titles of the HEA that authorize numerous programs and provisions designed to

provide assistance to postsecondary students and institutions. The seven titles of the HEA are:

•

Title I—General Provisions

1

The College Board, Trends in Student Aid 2006.

The original termination date for most of the provisions of the HEA was September 30, 2003, which was the original

date enacted by the Higher Education Amendments of 1998. This termination date was extended through FY2004 by

the General Education Provisions Act (GEPA). A series of subsequent measures—P.L. 108-366, P.L. 109-81, P.L. 109150, P.L. 109-212. P.L. 109-238, P.L. 109-292, P.L. 110-44, P.L. 110-51, P.L. 110-109, and P.L. 110-198—have

temporarily extended the HEA program and provision authority.

3

This report has been updated from one originally prepared by (name redacted) and (name redacted).

2

4

For a list of the key CRS products on Higher Education issues and programs, see:http://apps.crs.gov/cli/

cli.aspx?PRDS_CLI_ITEM_ID=479&from=3&fromId=5.

5

The Higher Education Amendments of 1968 (P.L. 90-575), Higher Education Amendments of 1972 (P.L. 92-318),

Higher Education Amendments of 1976 (P.L. 94-482), Higher Education Amendments of 1980 (P.L. 96-374), Higher

Education Amendments of 1986 (P.L. 99-498), Higher Education Amendments of 1992 (P.L. 102-325), and Higher

Education Amendments of 1998 (P.L. 105-244).

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A Primer on the Higher Education Act (HEA)

•

Title II—Teacher Quality Enhancement

•

Title III—Institutional Aid

•

Title IV—Student Assistance

•

Title V—Developing Institutions

•

Title VI—International Education Programs; and

•

Title VII—Graduate and Postsecondary Improvement Programs

Each of these titles and the major programs under each are discussed in greater detail.

Title I: General Provisions

Title I of the HEA includes four parts, which establish the general provisions for the remainder of

the HEA. Many of the provisions affect institutions’ participation in the Title IV student aid

programs.

Part A: Definitions

Title I, Part A of the HEA includes two definitions of an institution of higher education (IHE).

The first definition, contained in Section 101, applies to institutional participation in non-Title IV

programs. The second definition, contained in Section 102, applies only to institutions

participating in Title IV programs. The Section 102 definition includes all institutions recognized

as IHEs under Section 101 and expands the definition of IHEs for Title IV purposes to include

for-profit (proprietary) institutions, postsecondary vocational institutions, and institutions outside

of the United States (i.e., foreign institutions). While Section 102 includes requirements specific

to proprietary institutions, postsecondary vocational institutions, and foreign institutions, it also

includes requirements that all Title IV eligible institutions must meet regarding the course of

study offered, student enrollment, and institutional management. Finally, Section 103 contains

other definitions relevant to the HEA.

Part B: General Provisions

Title I, Part B of the HEA contains several general provisions that address issues such as antidiscrimination, student speech, recognition of accrediting agencies, and drug and alcohol abuse

on college campuses. More specifically, IHEs receiving federal funds may not use the funds to

conduct a study or project in which the terms of the contract prohibit an individual from

performing the study or project based on the individual’s race, religion, sex, or national origin.

Part B also includes a Sense of Congress regarding the protection of student speech and

association rights. It also provides the Secretary of Education (Secretary) with waiver authority

related to program eligibility criteria and the circumstances of the outlying areas.6 Part B

authorizes the National Advisory Committee on Institutional Quality and Integrity (NACIQI),

6

The term outlying areas includes Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern

Marianas Islands, the freely associated states of the Republic of the Marshall Islands, the Federated States of

Micronesia, and the Republic of Palau.

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which advises the Secretary on decisions related to recognition of accrediting agencies.

Provisions are also included related to the disclosure of foreign gifts received by IHEs.

The “Collegiate Initiative to Reduce Binge Drinking and Illegal Alcohol Consumption” is also

included in Part B. The initiative, expressed in the form of a Sense of the Congress, is intended to

change the culture of alcohol consumption on collegiate campuses. Also included in Part B is a

requirement that an IHE must certify to ED that it has adopted and implemented a program to

prevent the use of illicit drugs and alcohol abuse by students. An institution failing to provide this

certification is not eligible to receive funds or any other form of financial assistance under any

federal program. Part B also authorizes Alcohol and Drug Abuse Prevention Grants. Finally, Part

B includes various provisions to meet long-term obligations related to previously funded

programs supporting the construction of college housing and academic facilities.

Part C: Cost of Higher Education

Title I, Part C includes provisions focused on collecting data on college costs and prices. It

requires the redesign of postsecondary education data systems to improve the usefulness and

timeliness of the data collected, standard definitions to be developed for various postsecondary

education data elements, a national study of expenditures at IHEs, and the development of a

higher education market basket that includes items related to the costs of higher education. Part C

also authorizes the National Postsecondary Student Aid Study (NPSAS).7

Part D: Administrative Provisions for Delivery of Student

Financial Assistance

Title I, Part D authorizes a performance-based organization (PBO) responsible for managing the

information processing and delivery systems for the student assistance programs authorized under

HEA Title IV. 8 The PBO is known as the Office of Federal Student Aid.

Title II: Teacher Quality Enhancement

Title II authorizes grants for improving teacher education programs, strengthening teacher

recruitment efforts, and training prospective teachers. This title also includes the reporting

requirements for states and IHEs regarding the quality of teacher education programs.

7

The National Postsecondary Student Aid Study (NPSAS) is a comprehensive nationwide study designed to determine

how students and their families pay for postsecondary education, and to describe some demographic and other

characteristics of those enrolled. The study is based on a nationally representative sample of students in postsecondary

education institutions, including undergraduate, graduate, and first-professional students.

8

For additional information about the PBO see CRS Report RL32098, The Office of Federal Student Aid: The Federal

Government's First Performance-Based Organization, by (name redacted).

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Part A: Teacher Quality Enhancement Grants for States

and Partnerships

Title II, Part A authorizes three competitive grants to improve the quality of K-12 teacher

education—State, Partnership, and Recruitment grants. The authorization of appropriations

provides that appropriated funds be divided as follows: 45% to State grants; 45% to Partnership

grants; and 10% to Recruitment grants. These grants provide funding to states or to partnerships

involving high-need school districts, higher education schools of education, and higher education

schools of arts and sciences. Competitively awarded state grants support reform of teacher

licensing, strengthening of accountability for high quality teacher preparation, and recruitment of

high quality teachers for high-need schools. Partnership grants, also awarded competitively, are

used to reform teacher preparation programs so they prepare high quality teachers, provide

sustained pre-service clinical experiences to prospective teachers, and enhance the opportunities

for professional development activities for current teachers. Further, states and partnerships are

eligible for separate competitive grants that support teacher recruitment activities. These grants

may be used for scholarships enabling students to complete teacher training programs, support

services needed to complete postsecondary education, and support services during the initial three

years of teaching.

TEACH Grants

Students preparing for a career in teaching and who agree to teach for at least four years in a highpoverty school may receive a TEACH Grant of $4,000 for each year of study (prospective

mathematics and science teachers may also receive Bonus TEACH Grants of $500 for each year

of study). Recipients who do not complete their service requirement would be required to repay

the amount of the TEACH Grant as a loan under HEA, Title IV, Part D.9

Part B: Preparing Tomorrow’s Teachers to Use Technology

The Preparing Tomorrow’s Teachers to Use Technology grant program has not been funded since

FY2003 and therefore will not be discussed.

Title III: Institutional Aid

Title III is intended to provide support for less-advantaged institutions serving students from lowincome or racial minority backgrounds. There are six parts authorizing programs for IHEs that

serve select groups of students, including historically black colleges and universities (HBCUs),

Alaska Native and Native Hawaiian-serving institutions, and tribally controlled colleges and

universities (TCCUs). Additionally, Title III, Part A authorizes funding for less-advantaged

institutions and those serving low-income students.

9

The TEACH Grants program was newly added to the HEA by the College Cost Reduction and Access Act of 2007

(P.L. 110-84).

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Part A: Strengthening Institutions

Title III, Part A authorizes development and planning grants for institutions that serve “needy”

students. The grants are intended to assist eligible institutions with improving their academic

quality, institutional management, and fiscal stability. In order for an institution to be eligible for

a Part A grant, at least 50% of the enrolled degree seeking students must be recipients of needbased financial assistance under Title IV of the HEA (Federal Perkins Loan, Federal Work Study,

Federal Pell Grant, or Federal Supplemental Educational Opportunity Grant), or the institution’s

Pell Grant recipients must exceed the median percentage for similar institutions receiving Pell

Grants. In addition to serving needy students, the institution’s average educational and general

expenditures must be low in comparison with other comparable institutions.10 Further, Section

312(b) requires that the institution also be legally authorized by its state to award baccalaureate

degrees or be a junior or community college (or be the College of the Marshall Islands, the

College of Micronesia/Federated States of Micronesia, and Palau Community College); and be

accredited or pre-accredited by a nationally recognized accreditation association or agency.

Development grant recipients are authorized to utilize funds for the acquisition of scientific or

laboratory equipment; construction or improvement of instructional facilities, including the

integration of computer technology into institutional facilities to create smart buildings; faculty

exchange and development, and faculty fellowships for attaining advanced degrees; and

establishment or improvement of an endowment fund (the grant recipient must match the federal

share of funds and up to 20% of a recipient’s grant funds can be utilized for an endowment fund),

among other things.

American Indian Tribally Controlled Colleges and Universities

Part A authorizes competitive grants for colleges and universities that are identified by Section 2

of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. § 1801) or are

included in the Equity in Educational Land Grant Status Act of 1994 (7 U.S.C. § 301). TCCUs

must satisfy the general eligibility requirements in Section 312(b) however, the grants are

intended to provide and expand opportunities for Native American students.

TCCUs are permitted to carry out similar activities to those authorized for Part A recipients.

However, there are some additional allowable activities specifically designed for Native

American students such as: academic instruction in disciplines in which the group is

underrepresented; establishment or enhancement of a teacher education program that is designed

to prepare individuals to teach in elementary and secondary schools; and community outreach

programs that encourage Native American students to pursue postsecondary education.

Alaska Native and Native Hawaiian-Serving Institutions

Part A authorizes grants and assistance to Alaska Native and Native Hawaiian-serving institutions

to enable them to improve and expand higher education opportunities afforded to these two

10

Average educational and general expenditures for 2004-2005 (most recent data available for comparison purposes)

were as follows: $9,320 for two-year public institutions, $20,782 for two-year private institutions, $23,553 for fouryear public institutions, and $37,105 for four-year private institutions. Data were retrieved from http://www.ed.gov/

legislation/FedRegister/announcements/2007-1/010807c.pdf.

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groups. In addition to the general eligibility requirements of being accredited/pre-accredited and

awarded baccalaureate degrees or being a community college, an institution is eligible for a grant

under this section if at least 20% of the undergraduate students are Alaska Native or 10% are

Native Hawaiian. In addition to the percentage requirement, these institutions must also satisfy

the eligibility requirements set forth in Section 312(b) of Title III.

Similar to TCCUs, Alaska Native and Native Hawaiian institutions are permitted to undertake

some of the activities that are authorized for Part A institutions, and they are authorized to

develop activities that specifically address the needs of Alaska Native and Native Hawaiian

students. The delineated activities are more limited than those identified for Part A institutions,

focusing on equipment acquisition, facilities’ improvement, faculty development, curriculum and

instruction, funds and administrative management, and student support services. Additionally,

Alaska Native and Native Hawaiian institutions cannot utilize any of the grant money for the

establishment of, or to increase, their institutional endowment.

Part B: Strengthening Historically Black Colleges and Universities

Title III, Part B is the only program in Title III that distributes funds according to a formula rather

than the competitive process.11 These formula grants are for eligible historically black colleges

and universities (HBCUs). To qualify as an HBCU the institution must have been established

prior to 1964 and have as its principal mission the education of African Americans. HBCUs are

not required to meet many of the eligibility requirements delineated for Part A institutions, except

they must meet the general requirements of being authorized by their state to provide

baccalaureate degrees or be a junior or community college and be either pre-accredited or

accredited by an authorized agency or association.

HBCUs are permitted to carry out activities similar to Part A institutions, however, there are some

authorized activities specifically for African American students such as academic instruction in

disciplines in which the group is underrepresented. Similar to TCCUs, HBCUs are permitted to

establish or enhance a teacher education program and community outreach programs, however,

the programs and activities do not have to specifically address African Americans.

Historically Black Graduate and Professional Institutions

Part B also authorizes grants to 18 graduate and professional institutions that significantly

contribute to the number of blacks in the legal, medical, dental, veterinary, math, engineering and

the physical and natural science fields. The federal government provides each institution $1

million in unmatched funds. Any funds in excess of the $1 million must be matched on a dollar

for dollar basis by the institution. For example, if an institution requests $1.5 million, it must

demonstrate that it is able to match $250,000 of the federal award with non-federal funds.12

11

The formula allocates funds to each institution as follows: 50% of the funds are based upon the grantees’ number of

Pell Grant recipients compared with the number of Pell Grant recipients at all Part B institutions. Twenty-five percent

of the funds are based upon the number of graduates at the respective institution as a proportion of all graduates from

Part B institutions. The remaining 25% is contingent upon the percentage of the institution’s graduates who enroll in a

graduate or professional degree program in a discipline in which blacks are underrepresented, compared with the

percentage at all Part B institutions. No institution can receive less than $500,000.

12

Annually, the first $26.6 million appropriated for Section 326 is reserved for 16 of these institutions (those in the

program prior to the 1998 amendments); the next $2 million is reserved for two institutions added by the 1998

(continued...)

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Under this section, institutions are authorized to provide activities similar to those of

undergraduate HBCUs, however, they are also able to provide scholarships and fellowships to

assist students with the enrollment and completion of postbaccalaureate and professional degrees

in the aforementioned disciplines. It is the sole discretion of the chancellor or president of each

institution to determine which professional or graduate school(s) or program(s) at the institution

receives the funds appropriated under this section.

Part C: Endowment Challenge Grant

Endowment Challenge grants have not been funded since FY1995 and therefore will not be

discussed.

Part D: HBCU Capital Financing

Title III, Part D authorizes the HBCU Capital Financing program which provides federal

insurance for bonds issued to support capital financing projects at HBCUs generally for the

repair, renovation, and, in exceptional circumstances, the construction or acquisition of facilities

used for instruction, research, or housing. A designated bonding authority is charged with raising

funds in the bond market; in turn, these funds are lent to HBCUs. Repayments on these loans are

used to make principal and interest payments on outstanding bonds. Borrowers deposit a portion

of their loans into an escrow account to cover principal and interest payments on outstanding

bonds in the event borrowers are delinquent in repaying their loans. Federal insurance is provided

if this escrow account cannot cover all principal and interest payments due on outstanding bonds.

The total outstanding principal and unpaid accrued interest on these loans cannot exceed $375

million (of this amount, $250 million is for private HBCUs and $125 million is for public

HBCUs).

Part E: Minority Science and Engineering Improvement Program

Title III, Part E authorizes the Minority Science and Engineering Improvement Program which

provides grants to predominantly minority institutions13 to improve science and engineering

education and to increase the number of minorities and women in science and technology.

Priority is given to institutions that have not previously received a grant under this section, prior

grantees successful in increasing the number of women and minorities in science and technology,

or projects that provide balance in one of the following ways: geographical, academic discipline

or project type.

(...continued)

amendments. Any annually appropriated funds in excess of $28.6 million are awarded among the 18 institutions based

on a formula developed by the Secretary of Education using certain specified factors. (For specific factors regarding the

formula, see HEA, Title III, Section 326(f)(3)).

13

An institution is deemed a minority higher education institution if its enrollment of one group of minorities or

combination of minorities exceeds 50% of its total enrollment.

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Part F: General Provisions

Title III, Part F contains the general provisions, including waiver authorities that apply to the

administration of these programs, and specifies the various authorization funding levels for the

Title III programs.

Title IV: Student Assistance

Title IV of the HEA contains eight parts which authorize a broad range of programs and

provisions. As the most notable title of the HEA, the programs authorized under Title IV are the

primary sources of federal aid to support postsecondary education.

Part A: Grants to Students in Attendance at Institutions of

Higher Education

Title IV, Part A authorizes numerous grant programs—funds that do not have to be repaid—for

students who attend eligible Title IV participating institutions. The largest of these programs is

the federal Pell Grant program.

Subpart 1: Federal Pell Grants

The Federal Pell Grant program (Pell Grants) is the single largest source of grant aid for

postsecondary education attendance funded by the federal government. The Pell Grant program

provides grants to low-income, undergraduate students. The program is often defined as a quasientitlement program because in any year, federal funding is available to ensure that all eligible

students attending eligible institutions receive Pell Grants. To receive a Pell Grant a student must

satisfy the general eligibility criteria for all federal student aid programs,14 and the individual

must be enrolled at an eligible IHE for the purpose of earning a degree or certificate. Generally,

the recipient must also be enrolled in an undergraduate program. 15 A recipients who attends less

than full-time is eligible for a Pell Grant. However, the grant amount is adjusted in accordance

with the recipient’s enrollment status.

Pell Grants are portable, that is, the grant aid follows students to the eligible postsecondary

education institutions in which they enroll. The size of the grant is primarily based on the

financial resources that students and their families are expected to contribute toward

postsecondary education expenses, and the appropriated maximum grant award.16 The Pell Grant

award is considered to be the foundation of the student aid package because all other federal aid

14

For information about the basic federal student aid eligibility criteria and the specific criteria for the Pell program,

see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and

Reauthorization, by (name redacted).

15

Students enrolled on at least a half-time basis in a postbaccalaureate program required by a state for K-12 teacher

certification or licensure are also eligible. Such a program cannot lead to a graduate degree, and the enrolling IHE must

not offer baccalaureate degrees in education.

16

Although the authorizing statute (HEA, Title IV, Section 401(b)(2)) sets the authorized maximum Pell award for

each year, this authorized maximum is overridden by the appropriations process, which sets the appropriated maximum

award. This latter amount is the one applied in awarding funds to recipients.

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(e.g., federal work study, student loans) is calculated after the amount of the Pell award has been

determined.

Academic Competitiveness and National Science and Mathematics Access to

Retain Talent Grants

Subpart 1 also authorizes the Academic Competitiveness grant (AC) and National Science and

Mathematics Access to Retain Talent grant (SMART) programs. Both programs provide grants to

Pell Grant-eligible students who are enrolled full time, at either a two-year or four-year degreegranting IHE. However, unlike Pell, to be eligible a student must be a U.S. citizen. AC grants are

limited to students who are in either their first year or second year of undergraduate education,

and have a completed a rigorous secondary program. SMART grants are for third and fourth year

undergraduate students, who major in certain technical fields or foreign languages.17

Subpart 2: Federal Early Outreach and Student Services Programs

Subpart 2 of Part A contains the authorization for the five TRIO programs18 and the Gaining Early

Awareness and Readiness for Undergraduate Programs (GEAR-UP). Under each of these

programs, discretionary grants are awarded to postsecondary institutions and other eligible

agencies to encourage and assist low-income, first-generation college students, individuals with

disabilities, and select minorities, who have demonstrated potential to complete their secondary

education and pursue postsecondary and postbaccalaureate education.

Federal TRIO Programs

Part A authorizes five separate discretionary grant programs—Talent Search, Upward Bound,

Student Support Services, Education Opportunity Centers, and McNair Postbaccalaureate

Achievement—collectively known as the TRIO programs. These programs are designed to assist

qualified individuals from disadvantaged backgrounds with preparing for and completing

secondary and postsecondary education. In addition to these programs, funding for TRIO also

authorizes staff development activities and expenses for information dissemination and program

evaluation.

Talent Search. The Talent Search program encourages youth with college potential to complete

high school and enter postsecondary education, and also encourages dropouts to reenter high

school. To accomplish this, Talent Search programs disseminate information about available

postsecondary student assistance, offer tutoring, and other support services. At least two-thirds of

each project’s participants must be low-income individual and potential first-generation college

students. Participants must have also completed a minimum of five years of elementary

education, and be between the ages of 11 and 27.

17

For additional information about the AC and SMART grant programs see CRS Report RL33457, Academic

Competitiveness Grants: Background, Description, and Selected Issues, by (name redacted).

18

Originally, in 1965, there were three programs—Upward Bound, Student Support Services, and Talent Search—that

provided a wide range of student support services, thus the name TRIO. Subsequent legislation authorized new

programs with a similar purpose, however the name TRIO remains.

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Upward Bound. Upward Bound (UB) provides pre-college students and veterans with the skills

and motivation needed to succeed in postsecondary education. UB programs offer services such

as: counseling and workshops; tutoring; and exposure to cultural events. Most UB projects also

provide six-week summer programs on college campuses. Participants may receive monthly

stipends of up to $60 during the summer (work-study students may receive monthly stipends of

$300 in the summer) and $40 during the rest of the year. ED also funds Upward Bound Math and

Science Centers providing intensive instruction in math and science. At least two-thirds of each

project’s participants must be low-income, first-generation college goers; the remainder must be

either low-income or a prospective first-generation college goer. Participants also must have

completed at least eight years of elementary education, and be 13 to 19 years of age.

Student Support Services. Student Support Services (SSS) projects are intended to improve

retention and graduation rates, and improve the transfer rates of students from two-year to fouryear colleges, by offering a broad range of support services such as academic counseling and

guidance. SSS projects may provide such services as: instruction in reading, writing, study skills,

math, and other subjects; academic counseling; exposure to cultural events; assistance in the

graduate admission and financial aid processes; assistance in transferring from two-year to fouryear colleges; and mentoring. At least two-thirds of SSS participants must be disabled or lowincome and first-generation. The remaining participants must be either low-income, firstgeneration, or disabled. Not less than one-third of the disabled participants must also be lowincome.

McNair Postbaccalaureate Achievement Program. The McNair Postbaccalaureate Achievement

Program prepares low-income and first-generation undergraduate students for doctoral study.

Among the services that McNair programs may provide are: research opportunities, seminars, and

other activities preparing students for doctoral study; summer internships; academic counseling;

assistance in securing graduate admission and financial aid; mentoring; and exposure to cultural

events and academic programs. Research participants may receive an annual award providing a

stipend of up to $2,800; the award may cover the costs of summer tuition, room and board, and

transportation as well. At least two-thirds of the participants must be low-income and firstgeneration undergraduates; the remainder must be from a group underrepresented in graduate

education.

Education Opportunity Centers. The Education Opportunity Centers (EOC) program is intended

to provide information to prospective postsecondary students regarding available financial aid

and academic assistance, and help them apply for college admission and financial aid. EOCs may

provide information to communities about postsecondary education and training opportunities,

assistance in completing admission and financial aid applications, assistance preparing for college

entrance exams, and guidance on reentering secondary school, or entering a GED program or

other program for high school dropouts. At least two-thirds of the participants must be lowincome and would be first-generation college goers. The participants must also be at least 19

years old.

Gaining Early Awareness and Readiness for Undergraduate Programs

Part A also authorizes the Gaining Early Awareness and Readiness for Undergraduate Programs

(GEAR UP), which provides grants to states and partnerships to support early college preparation

and awareness activities at the state and local levels, to ensure low-income elementary and

secondary school students are prepared for and pursue postsecondary education. GEAR UP

grantees serve an entire cohort of students beginning no later than the seventh grade and follow

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the cohort through high school. GEAR UP has two major components: (1) eligible projects

provide early intervention services such as mentoring, career counseling, and college visits; and

(2) college scholarships to eligible participating students.

Subpart 3: Federal Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grants (FSEOG) is one of the three programs

collectively referred to as the campus-based programs—Federal Work Study (FWS) and Perkins

Loans are the other two—because their funds are allocated to postsecondary institutions to

administer and award to students. In addition to institutions administering the funds for these

programs the participating institution must match a portion of their allocation under each

program. Institutions are required to award FSEOGs to students with exceptional financial need,

with priority going to students receiving Pell Grants.

The federal share of funds for FSEOG is allocated to IHEs according to a statutorily prescribed

formula that is largely driven by the institution’s initial year of participation in the program.

Institutions first are allocated funds in proportion to the amount they received in previous years,

with priority going to institutions that participated in the program in FY1999 or earlier. Funds are

then allocated to those institutions that began participating after FY1999, but which are not firstor second-time participants. Following this, funds are allocated to institutions that are first- or

second-year participants.19

Subpart 4: Leveraging Educational Assistance Partnership Program

The Leveraging Educational Assistance Partnership (LEAP) program provides matching federal

funds to states to encourage and assist them in providing eligible postsecondary students with

need-based grants and work-study aid.

Subpart 5: Special Programs for Students Whose Families Are Engaged in

Migrant and Seasonal Farmwork

There are two programs authorized under Subpart 5: the High School Equivalency Program

(HEP) and the College Assistance Migrant Program (CAMP). HEP helps persons 16 years of age

or older who are not currently enrolled in school to obtain the equivalent of a secondary school

diploma and subsequently to gain employment or to begin postsecondary education or training.

CAMP assists students enrolled in the first undergraduate year at an institution of higher

education to complete their programs of study for that year.

Subpart 6: Robert C. Byrd Honors Scholarship Program

The Robert C. Byrd Honors Scholarship program is a federally funded, state-administered

scholarship program, designed to recognize exceptionally able high school seniors who show

promise for continued excellence in postsecondary education. ED awards funds to state education

agencies, which make scholarship awards to eligible applicants.

19

For additional information regarding the FSEOG formula see CRS Report RL31618, Campus-Based Student

Financial Aid Programs Under the Higher Education Act, by (name redacted).

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Subpart 7: Child Care Access Means Parents in School

The Child Care Access Means Parents in School program is designed to support the participation

of low-income parents in postsecondary education through campus-based child care services. The

program awards competitive grants to IHEs to establish or support a campus-based child care

program.

Part B: Federal Family Education Loan

The Federal Family Education Loan program (FFEL) is authorized under Title IV, Part B. Under

the FFEL program, loan capital is provided by private lenders, and the federal government

guarantees lenders against loss through borrower default, death, permanent disability, or in

limited instances, bankruptcy. FFEL program loans are originated by private lenders. Private

lenders also are responsible for billing borrowers and collecting loan payments. State and

nonprofit guaranty agencies receive federal funds to play the lead role in administering the federal

loan insurance and for providing other FFEL program administrative services.

FFEL loans are an entitlement, meaning the funding for the program is mandatory and therefore

not subject to the annual appropriations process. The following types of federally sponsored

student loans are available through the FFEL program to support postsecondary student expenses:

Stafford loans, subsidized or unsubsidized; PLUS loans; and Consolidation loans. Loan Limits,

repayment plans, deferment and forbearance benefits, interest rates and other terms and

conditions are determined by statutory provisions.20

Subsidized Stafford loans

Subsidized Stafford loans are available to undergraduate and graduate students. The federal

government “subsidizes” these loans by paying the interest on the loans while the student is

enrolled in school on at least a half-time basis and during grace periods and deferment periods. To

qualify for a subsidized Stafford loan a student must have financial need.

Unsubsidized Stafford loans

Unsubsidized Stafford loans are available to undergraduate and graduate students. The federal

government does not pay the interest on these loans while the student is in school or during

deferment and grace periods. Students can qualify for unsubsidized Stafford loans regardless of

financial need.

PLUS loans

PLUS loans are available to parents of dependent undergraduate students and to graduate

students. The federal government does not pay the interest on PLUS loans while students are in

20

For additional information regarding loan terms and conditions see CRS Report RL33673, Federal Family Education

Loan Program and William D. Ford Direct Loan Program Student Loans: Terms and Conditions for Borrowers, by

(name redacted).

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school or during deferment or grace periods. Borrowers can qualify for PLUS loans regardless of

financial need.

Consolidation loans

Consolidation loans allow borrowers with existing federal student loans to combine their

obligations and possibly extend their repayment period.

Part C: Federal Work-Study Programs

Title IV, Part C authorizes the Federal Work-Study Programs (FWS), one of the three campusbased programs previously described. The purpose of FWS is to provide part-time employment to

undergraduate, graduate, and professional students in need of earnings to pursue their course of

study; and to encourage student participation in community service activities. Students receive

their awards as compensation for the hours they have worked Unlike the FSEOG where aid is

required to be awarded first to students with exceptional financial need, FWS aid may be

provided to any student demonstrating financial need. Awards typically are based on factors such

as each student’s financial need, the availability of FWS funds, and whether a student requests

FWS employment and is willing to work.

Part D: William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Student Loan program (DL), authorized under Title IV, Part

D, was intended to streamline the student loan delivery system and achieve cost savings. The DL

program provides the same set of loans as the FFEL program, but uses a different administrative

structure and draws on a different source of capital. Under the DL program, the federal

government essentially serves as the banker—the federal government provides the loans to

students and their families, using federal capital (i.e., funds from the U.S. Treasury), and owns the

loans. Under the DL program, schools may serve as direct loan originators or the loans may be

originated by contractors working for ED. Similar to FFEL, DL loans include subsidized,

unsubsidized, PLUS loans and consolidation loans.

Part E: Federal Perkins Loans

The final campus-based program, Federal Perkins loans, authorizes the allocation of federal funds

to IHEs to assist them in capitalizing revolving loan funds for the purpose of making low-interest

loans to students with exceptional financial need. Institutions capitalize revolving loan funds with

a combination of federal and institutional capital contributions. IHEs apply to ED for funds which

are allocated according to procedures similar to those previously discussed for the FSEOG

program.

Institutions are required to establish written selection procedures for awarding Perkins Loans to

eligible students. Loans must be made reasonably available to all eligible students, to the extent

that funds are available, and priority must be given to students with exceptional financial need.

Undergraduate students and graduate and professional students are eligible to borrow under the

Perkins Loan program. Interest on Perkins Loans is fixed at a rate of 5% per year; however, no

interest accrues prior to a student beginning repayment.

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Part F: Need Analysis

Title IV, Part F authorizes the federal need analysis system, which is used to allocate billions of

dollars of federal student aid under Title IV of the HEA, and by states and many IHEs as well.

The need analysis process entails gathering financial data, which are provided by the student via

the free application for federal student aid (FAFSA); calculating the expected family contribution

(EFC); and packaging of the applicant’s financial aid award by the postsecondary institution’s

financial aid administrator.

The EFC is the amount that the need analysis system determines a family has available to

contribute toward postsecondary education expenses. In calculating the EFC, consideration is

given to available income (a combination of taxable and untaxed income and benefits), and for

some families, available assets. In addition, living expenses, retirement needs, and federal and

state tax liability are considered. The income contribution is calculated by determining the total

income of a student and his or her family (where applicable), and determining available income

by subtracting a series of allowances from total income; a percentage of that available income is

considered as an income contribution toward postsecondary education costs. A contribution from

assets is similarly calculated. The combination of the available income and asset contribution

divided by the number of individuals in the family enrolled in college constitutes the EFC.

The calculation of the EFC varies depending upon the applicant’s dependency status. There are

three separate dependency classifications for individual applicants: dependent student,

independent student with dependents, and independent student without dependents.21 These

distinctions are important because parental financial information is not considered if the applicant

meets the statutory definition of an independent student.

Part G: General Provisions Relating to Student

Assistance Programs

Title IV, Part G establishes institutional requirements for Title IV participation and related

provisions. It includes definitions of terms such as “academic year” and “eligible program” that

affect an institution’s participation in the federal student aid programs. Part G establishes a master

calendar related to federal student aid programs that the Secretary is required to follow, and

includes requirements related to forms and regulations, including the FAFSA. This part also

contains student eligibility requirements to receive federal student aid, including the types of

institutions and programs in which students must enroll, ability-to-benefit requirements for

students who are not high school graduates, and penalties related to drug-related offenses.

Provisions are also included that prescribe how Title IV funds will be returned to the federal

government by IHEs and students in the event that a student withdraws from the institution.

Part G also contains numerous requirements regarding institutional information dissemination

activities for prospective and enrolled students. For example, IHEs are required to provide

21

According to the Higher Education Act, Title IV, Section 480(d), an applicant must meet one of the following

conditions to be classified as independent: 24 years of age or older, married, enrolled in a graduate or professional

program, have a dependent other than a spouse, orphan or ward of the court (or was up until age 18), or a military

veteran or active duty service member. Students who do not meet any of the aforementioned conditions are considered

to be dependent for the purposes of Title IV student aid.

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information related to available student financial assistance programs, exit counseling to

borrowers, and data on athletically related student aid, campus security policies, and campus

crime statistics.

Additionally, Part G authorizes combined payment plans for borrowers, the National Student

Loan Data System, loan simplification, the College Access Initiative, the Distance Education

Demonstration Program, regulatory relief and improvement (e.g., Quality Assurance Program and

streamlining experiments), wage garnishment requirements, administrative expenses, criminal

penalties, administrative subpoenas, the Advisory Committee on Student Financial Assistance,

and regional meetings and negotiated rulemaking.

Finally, Part G includes the Program Participation Agreement (PPA), which all institutions must

sign to participate in Title IV programs, and authorizes the Secretary to issue regulations

regarding audits, financial responsibility, and penalties for IHEs failing to meet requirements.

Part H: Program Integrity

Title IV, Part H includes three subparts that specify the roles and responsibilities for the three

aspects of the program integrity triad: state authorization, accreditation by an accrediting

organization recognized by the Secretary, and eligibility and certification by ED.

Subpart 1: State Role

Subpart 1 requires states to provide the Secretary with various information about the licensing

and authorization process used by the state, if the state has revoked the authority of an IHE to

operate, and if the state has evidence that an IHE has committed fraud related to Title IV

programs or substantially violated a Title IV provision.

Subpart 2: Accrediting Agency Recognition

Subpart 2 delineates the criteria the Secretary utilizes to recognize an accrediting agency as a

reliable authority for determining the quality of education or training offered by an IHE for the

purposes of participating in the federal student aid programs (Title IV) and other federal purposes.

These criteria include, for example, requirements related to the structure of the accrediting

agency, the agency’s operating procedures (e.g., institutional review process), and due process

requirements.

Subpart 3: Eligibility and Certification Procedures

Subpart 3 includes the eligibility and certification procedures administered by ED. In this

capacity, ED is responsible for verifying the institution’s legal authority to operate in a state and

its accreditation status, and for evaluating its administrative capability and financial

responsibility.

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Part I: Competitive Loan Auction Pilot Program

Title IV, Part I authorizes the Secretary of Education to implement a student loan auction program

for parent PLUS loans in the FFEL program to begin on July 1, 2009.22 Prior to implementation

the Secretary would hold an auction in each state where lenders would bid on the minimum

amount of subsidization they would accept to have exclusive rights to originate parent PLUS

loans in that state.

Part J: Strengthening Historically Black Colleges and

Universities and Other Minority-Serving Institutions

Title IV, Part J allocates funding for Hispanic-serving institutions, historically black colleges and

universities, tribal colleges and universities, and Alaska Native and Native Hawaiian-serving

institutions. It also authorizes new programs and allocates funding for Predominantly Black

Institutions, Asian American and Pacific Islander-serving institutions and Native American NonTribal-serving institutions.23

Title V: Developing Institutions

In 1998 Congress authorized the inclusion of grants to Hispanic-Serving Institutions (HSIs) under

Title V of the HEA. Prior to 1998, the HSI program was a section of Title III, Part A. Title V of

the HEA is solely dedicated to authorizing grants for HSIs.

Part A: Hispanic-Serving Institutions

Title V, Part A authorizes grants to institutions that provide and increase the number of

educational opportunities available to Hispanic and other low-income students. To qualify as an

Hispanic-serving institution (HSI) for the purposes of Title V, an institution must have a minimum

25% full-time, Hispanic undergraduate student enrollment. In addition, HSIs must also satisfy

requirements similar to those for Title III, Part A institutions, including the following: they must

serve needy students and have low general and education expenditures in comparison with other

similar institutions.

HSIs are authorized to use their funds for specific activities that parallel those delineated under

Title III Part A. Additionally, HSIs can use their funds to establish or enhance teacher education

programs; establish community outreach programs to provide elementary and secondary school

students with the interest and skills to pursue postsecondary education; and expand courses and

institutional resources in order to increase the number of Hispanic and other underrepresented

graduate or professional students that the institution can serve.

22

The Competitive Loan Auction program was newly added to the HEA by the College Cost Reduction and Access

Act of 2007 (P.L. 110-84).

23

The Strengthening Historically Black Colleges and Universities and Other Minority-Serving Institutions was newly

added to the HEA by the College Cost Reduction Act of 2007 (P.L. 110-84).

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Part B: General Provisions

Title V, Part B contains the general provisions, including waiver authorities that apply to the

administration of these programs, and specifies the various authorization funding levels for the

Title V programs.

Title VI: International Education Programs

Title VI contains four parts that authorize an array of international and foreign language studies

programs and business and international education programs to strengthen domestic IHEs in

foreign languages and in area and international studies.

Part A: International and Foreign Language Studies

Title VI, Part A authorizes a series of programs, centers, and fellowships related to international

and foreign language studies.

•

The National Language and Area Centers and Programs provide grants to IHEs

to establish, strengthen, and operate (1) comprehensive foreign language and area

or international studies centers and programs (National Resource Centers), (2) a

network of undergraduate foreign language and area or international studies

centers and programs (Undergraduate International Studies and Foreign

Language Program).

•

The Graduate Fellowships for Foreign Language and Area or International

Studies program provides grants to IHEs to enable them to pay stipends to

individuals participating in advanced training in the aforementioned centers and

programs.

•

Language Resource Centers, authorized by Part A, provides grants to IHEs to

establish, strengthen, and operate national language resource and training centers

and award grants to IHEs to establish, strengthen, and implement programs to

improve undergraduate instruction in international studies and foreign languages.

•

International Research and Studies Projects are grants or contracts to conduct

research and studies focused on instruction and national needs in foreign

languages and area or international studies.

•

Technological Innovation and Cooperation for Foreign Information Access

program authorizes grants to develop innovate techniques or programs using new

electronic technologies to collect, organize, preserve, and disseminate

information on world regions and countries that address U.S. teaching and

research needs in foreign languages and international studies.

•

Finally, the American Overseas Research Centers program makes grants to

consortia of IHEs to enable the centers to promote postgraduate research,

exchanges, and area studies.

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Part B: Business and International Education Programs

Title VI, Part B authorizes grants to IHEs to pay the federal share of the cost of planning,

establishing, and operating centers for international business education which will be national

resources for the teaching of international business, provide instruction in critical foreign

languages and international fields, and provide research and training in the international aspects

of trade, commerce, and related areas (Centers for International Business Education). It also

authorizes grants to IHEs to promote linkages between IHEs and the American business

community engaged in international economic activity (Business and International Education

Projects).

Part C: Institute for International Public Policy

Title VI, Part C authorizes the Institute for International Public Policy program. This program

supports activities to increase the representation of African Americans and other underrepresented

minorities in international service.

Part D: General Provisions

Title VI, Part D contains definitions relevant to Title VI.

Title VII: Graduate and Postsecondary Improvement

Programs

Title VII authorizes several graduate education programs, as well as a grant program designed to

support innovation and improvement in postsecondary education. It also authorizes grants for

urban community service and demonstration programs to enable IHEs to better serve disabled

students.

Part A: Graduate Education Programs

Title VII, Part A authorizes several graduate education programs. The Jacob K. Javits Fellowships

program provides financial support to students of “superior ability” in the arts, humanities, and

social sciences. The Graduate Assistance in Areas of National Need (GAAN) provides

competitive grants to postbaccalaureate students in areas of national need. The Thurgood

Marshall Legal Educational Opportunity program authorizes a grant or contract to the Council on

Legal Education Opportunity for services and activities to help low-income, minority, or

disadvantaged college students prepare for, gain access to, and complete law school. Part A also

includes general provisions that affect the administration and evaluation of these programs and

the provision of continuation awards.

Part B: Fund for the Improvement of Postsecondary Education

Title VII, Part B authorizes the Fund for the Improvement of Postsecondary Education (FIPSE)

awards to IHEs and other nonprofit entities for projects that model innovative reform and

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improvement of postsecondary education. Also included are provisions establishing the National

Board of the Fund for the Improvement of Postsecondary Education, which provides guidance on

priorities for the improvement of postsecondary education. Part B also includes administrative

provisions and the authority to make grants for special projects in areas of national need.

Part C: Urban Community Service

The Urban Community Service program has not been funded since FY1999 and therefore will not

be discussed.

Part D: Demonstration Projects to Ensure Students with

Disabilities Receive a Quality Higher Education

Title VII, Part D authorizes demonstration projects that support technical assistance and

professional development for faculty and administrators at IHEs to enable them to better serve

postsecondary education students with disabilities.

Part E: College Access Challenge Program

Title VII, Part E authorizes the College Access Challenge Grant Program, which makes funds

available to states and philanthropic organizations to provide students and families with

information about the benefits of college, outreach activities, career preparation and need-based

grant aid among other things.24

Author Contact Information

(name redacted)

24

The College Access Challenge Grant Program was newly added to the HEA by the College Cost Reduction and

Access Act of 2007 (P.L. 110-84).

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Key CRS Staff Members on Higher Education Issues

Contact

Major Areas of Responsibility

David Smole

Student loans, campus-based student aid programs, and postsecondary

education finance

7-----

Blake Naughton

Pell grants, need analysis, college cost and price, institutional eligibility,

minority-serving institutions, community colleges, LEAP, graduate

education programs, FIPSE, and general higher education issues

7-----

Jeff Kuenzi

TRIO, GEAR-UP, international education, and teacher quality

7-----

Congressional Research Service

Telephone

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