The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Congressional research reportSep 8, 2008

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The Higher Education Opportunity Act:

Reauthorization of the Higher Education Act

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September 8, 2008

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RL34654

CRS Report for Congress

Prepared for Members and Committees of Congress

The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Summary

The Higher Education Act of 1965 (HEA; P.L. 89-329), as amended, authorizes a broad array of

federal student aid programs that assist students and their families with paying for or financing

the costs of obtaining a postsecondary education. The HEA also authorizes a series of programs

that provide federal aid and support to institutions of higher education. HEA programs are

administered by the U.S. Department of Education (ED).

In the 110th Congress, the Higher Education Opportunity Act (HEOA; P.L. 110-315) was enacted

to amend, extend, and establish new programs under the Higher Education Act of 1965 (HEA). In

most cases, funding authorization for programs extended or newly established under the HEOA is

provided through FY2014. The HEOA also makes amendments to a number of other laws. Prior

to the enactment of the HEOA, the last comprehensive reauthorization of the HEA occurred in

1998, under the Higher Education Amendments of 1998 (P.L. 105-244), which authorized funding

for most HEA programs through FY2003.

Reauthorization of the HEA was considered during the 108th, 109th, and 110th Congresses. While

reauthorization of the HEA was being considered, funding authorization for HEA programs had

been extended under the General Education Provisions Act (GEPA) and a series of Higher

Education Extension Acts. Separate from bills to reauthorize the HEA, significant changes to

several HEA programs were made under the Higher Education Reconciliation Act of 2005

(HERA; P.L. 109-171), the College Cost Reduction and Access Act (CCRAA; P.L. 110-84), and

the Ensuring Continuing Access to Student Loans Act of 2008 (ECASLA; P.L. 110-227).

In the first session of 110th Congress, the Senate passed S. 1642, the Higher Education

Amendments of 2007 (S.Rept. 110-231), to reauthorize the HEA. In the second session, the

House passed H.R. 4137, the College Opportunity and Affordability Act of 2008 (H.Rept. 110500). Many of the provisions contained in either or both the Senate- and House-passed bills were

agreed to by House and Senate conferees in the conference report to H.R. 4137 (H.Rept. 110803). The House and the Senate passed H.R. 4137, the Higher Education Opportunity Act, on

July 31, 2008. The President signed it into law as P.L. 110-315, on August 14, 2008.

This report begins with a brief overview of the HEA, its organization into various titles, and the

major programs and program requirements specified under each title. It then identifies and

describes selected amendments made to the HEA and other laws by the HEOA. This report will

be updated as warranted.

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Contents

Overview of the Higher Education Opportunity Act ....................................................................1

Amendments to the Higher Education Act ...................................................................................3

Title I: General Provisions.....................................................................................................3

Part A: Definitions ..........................................................................................................3

Part B: Additional General Provisions .............................................................................4

Part C: Cost of Higher Education ....................................................................................6

Part D: Delivery of Student Financial Assistance.............................................................7

Part E: Lender and Institution Requirements Relating to Education Loans .......................7

Title II: Teacher Quality Enhancement ..................................................................................9

Part A: Teacher Quality Partnership Grants......................................................................9

Part B: Enhancing Teacher Education............................................................................ 10

Title III: Institutional Aid .................................................................................................... 11

Part A: Strengthening Institutions .................................................................................. 11

Part B: Historically Black Colleges and Universities ..................................................... 13

Part C: Endowment Challenge Grants ........................................................................... 13

Part D: HBCU Capital Financing .................................................................................. 13

Part E: Minority Science and Engineering Improvement Programs ................................ 14

Part F: Mandatory Appropriations for Minority-Serving Institutions .............................. 14

Part G: General Provisions ............................................................................................ 14

Title IV: Student Assistance................................................................................................. 14

Part A: Grants to Students in Attendance at IHEs........................................................... 15

Subpart 1: Pell and AC/SMART Grants......................................................................... 15

Subpart 2: TRIO and GEAR UP.................................................................................... 17

Subpart 4: LEAP and GAP ............................................................................................ 18

Other Title IV: Part A Subparts...................................................................................... 19

Part B: Federal Family Education Loan (FFEL) Program; and Part D: William D.

Ford Federal Direct Loan (DL) Program..................................................................... 19

Part C: Federal Work-Study (FWS) Program ................................................................. 24

Part E: Federal Perkins Loan Program........................................................................... 25

Part F: Need Analysis.................................................................................................... 26

Part G: General Provisions ............................................................................................ 27

Part H: Program Integrity .............................................................................................. 32

Part I: Pilot Parent PLUS Loan Auction Program........................................................... 33

Title V: Developing Institutions........................................................................................... 34

Part A: Hispanic Serving Institutions ............................................................................. 34

Part B: Postbaccalaureate Opportunities for Hispanic Americans ................................... 34

Part C: General Provisions ............................................................................................ 34

Title VI: International Education Programs.......................................................................... 34

Part A: International Education Programs ...................................................................... 34

Part B: Business and International Education Program .................................................. 34

Part C: Institute for International Public Policy.............................................................. 35

Part D: General Provisions ............................................................................................ 35

Title VII: Graduate and Postsecondary Improvement Programs ........................................... 35

Part A: Graduate Education ........................................................................................... 35

Part B: Fund for the Improvement of Postsecondary Education (FIPSE) ........................ 36

Part D: Programs to Provide Students with Disabilities with a Quality Higher

Education................................................................................................................... 37

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Part E: College Access Challenge Grant Program .......................................................... 38

Title VIII: Additional Programs ........................................................................................... 38

Additional HEA Programs............................................................................................. 38

Additional HEOA Programs .......................................................................................... 43

Other Provisions of the HEOA .................................................................................................. 43

Title IX: Amendments to Other Laws .................................................................................. 44

Part A: Education of the Deaf Act of 1986..................................................................... 44

Part B: United States Institute of Peace Act ................................................................... 44

Part C: Higher Education Act Amendments of 1992 and of 1998; Department of

Education Organization Act........................................................................................ 44

Part D: Tribally Controlled Colleges or Universities Assistance Act of 1978;

Navajo Community College Act................................................................................. 44

Part E: Omnibus Crime Control and Safe Streets Act of 1968 ........................................ 45

Part F: Institutional Loan Repayment Assistance Programs............................................ 45

Part G: Stevenson-Wydler Technology Innovation Act of 1980...................................... 45

Title X: Private Student Loan Transparency and Improvement Act of 2008.......................... 46

Amendments to the Truth in Lending Act ...................................................................... 46

Amendments to the Community Reinvestment Act of 1977 ........................................... 47

Financial Literacy and Education Commission .............................................................. 47

Title XI: Studies and Reports............................................................................................... 47

Government Accountability Office................................................................................ 47

National Academy of Sciences ...................................................................................... 48

Secretary of Education .................................................................................................. 48

Tables

Table 1. Maximum Authorized Federal Pell Grant Award Amounts, Academic Years

2008-2009 through 2014-2015 ............................................................................................... 16

Table A-1. Authorizations of Appropriations Under the Higher Education Act, as

Amended, FY2009-FY2017 ................................................................................................... 50

Appendixes

Appendix. Authorizations of Appropriations Under the Higher Education Act, as

Amended ............................................................................................................................... 49

Contacts

Author Contact Information ...................................................................................................... 65

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Overview of the Higher Education Opportunity Act

In the 110th Congress, the Higher Education Opportunity Act (HEOA; P.L. 110-315) was enacted

to amend, extend, and establish new programs under the Higher Education Act of 1965 (HEA;

P.L. 89-329). In most cases, funding authorization for programs extended or newly established

under the HEOA is provided through FY2014. The HEOA also makes amendments to and

extends funding authorization within a number of other laws.

The HEA authorizes a broad array of federal student aid programs that assist students and their

families with paying for or financing the costs of obtaining a postsecondary education, as well as

programs that provide aid to institutions of higher education (IHEs). The HEA, as amended by

the HEOA, is organized into eight titles. Title I specifies general provisions and definitions for

most of the programs authorized under the HEA. Most of the federal student aid programs are

authorized under Title IV, Student Assistance. Title IV also authorizes programs that make

available services and support to less-advantaged students. In addition, programs that make

available assistance to students pursuing international education and certain graduate and

professional degrees are authorized under Title VI, International Education Programs and Title

VII, Graduate and Postsecondary Improvement Programs. Programs that make available aid and

support to institutions are authorized under Title II, Teacher Quality Enhancement, Title III,

Strengthening Institutions, and Title V, Developing Institutions. Finally, the HEOA added a new

title, Title VIII, Additional Programs, to the HEA.1 HEA programs are administered by the U.S.

Department of Education (ED).

The Higher Education Act of 1965 was enacted as P.L. 89-329, on November 8, 1965. Since then,

the HEA and its component programs have been amended and extended numerous times. On

several occasions, the HEA has been comprehensively amended and reauthorized. Prior to the

enactment of the HEOA, the last comprehensive reauthorization of the HEA occurred in 1998,

under the Higher Education Amendments of 1998 (P.L. 105-244), which authorized funding for

most HEA programs through FY2003.2 During the period leading up to the enactment of the

HEOA, authorization for HEA programs had been extended for one additional fiscal year under

the General Education Provisions Act (GEPA), and then incrementally through a series of Higher

Education Extension Acts.3

Major amendments to selected HEA programs—particularly those that receive mandatory

funding—have also been made as part of recent budget reconciliation measures. In the 109th

Congress, the Federal Family Education Loan (FFEL) program and the William D. Ford Federal

Direct Loan (DL) program were amended and extended under the Higher Education

Reconciliation Act (HERA, part of P.L. 109-171).4 In the 110th Congress, the College Cost

For additional information on the HEA and its component programs, see CRS Report RL34214, A Primer on the

Higher Education Act (HEA), by (name redacted).

See also, the Higher Education Amendments of 1968 (P.L. 90-575), the Higher Education Amendments of 1972 (P.L.

92-318), the Higher Education Amendments of 1976 (P.L. 94-482), the Higher Education Amendments of 1980 (P.L.

96-374), the Higher Education Amendments of 1986 (P.L. 99-498), and the Higher Education Amendments of 1992

(P.L. 102-325).

Fourteen laws that temporarily extended the HEA were enacted: P.L. 108-366, P.L. 109-81, P.L. 109-150, P.L. 109212. P.L. 109-238, P.L. 109-292, P.L. 110-44, P.L. 110-51, P.L. 110-109, P.L. 110-198, P.L. 110-230, P.L. 110-238,

P.L. 110-256, and P.L. 110-300.

For additional information about changes made to HEA programs through the HERA, see CRS Report RS22308,

(continued...)

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Reduction and Access Act (CCRAA; P.L. 110-84) made significant changes to FFEL and DL

programs, the Federal Pell Grant program, and the federal need analysis formula.5 Additionally, in

Spring 2008, emergency changes to the federal student loan programs were made under the

Ensuring Continuing Access to Student Loans Act of 2008 (ECASLA; P.L. 110-227).6

In the first session of 110th Congress, the Senate passed S. 1642, the Higher Education

Amendments of 2007 (S.Rept. 110-231), to amend and extend the HEA. In the second session of

the 110th Congress, the House passed an HEA reauthorization bill, H.R. 4137, the College

Opportunity and Affordability Act of 2008 (H.Rept. 110-500). The two bills contained a number

of similar provisions, as well as many that were unique to each bill.7 Many of the provisions

contained in either or both the Senate and House bills were agreed to by House and Senate

conferees in approving the conference report to H.R. 4137 (H.Rept. 110-803). Both the House

and the Senate passed H.R. 4137, renamed as the Higher Education Opportunity Act, on July 31,

2008; and it was signed into law by the President on August 14, 2008 (P.L. 110-315).

The HEOA is composed of eleven Titles, as identified below.

•

Title I: General Provisions

•

Title II: Teacher Quality Enhancement

•

Title III: Institutional Aid

•

Title IV: Student Assistance

•

Title V: Developing Institutions

•

Title VI: International Education Programs

•

Title VII: Graduate and Postsecondary Improvement Programs

•

Title VIII: Additional Programs

•

Title IX: Amendments to Other Laws

•

Title X: Private Student Loan Improvement

•

Title XI: Studies and Reports

In general, Titles I through VII of the HEOA amend, extend, and authorize new programs under

the corresponding titles of the HEA. Title VIII of the HEOA adds a new Title VIII to the HEA,

which establishes a series of new programs. Together, the eight titles of the HEA specify program

requirements and authorize a wide array of programs that assist students and their families with

paying for or financing the costs of obtaining a postsecondary education; and also programs that

(...continued)

Student Loans and FY2006 Budget Reconciliation, by (name redacted).

For information on changes to HEA programs made under the CCRAA, see CRS Report RL34077, Student Loans,

Student Aid, and FY2008 Budget Reconciliation, by (name redacted), (name redacted), and (name redacted).

For information on the ECASLA, see CRS Report RL34452, The Ensuring Continued Access to Student Loans Act of

2008, by (name redacted).

For a detailed description of the proposals passed by the Senate in S. 1642, and the House in H.R. 4137, see CRS

Report RL34283, Higher Education Act Reauthorization in the 110th Congress: A Comparison of Major Proposals, by

(name redacted) et al.

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

provide aid to institutions. Titles IX and X of the HEOA primarily make amendments to other

laws; and Title XI establishes requirements for a series of studies and reports.

In general, amendments made under the HEOA to the HEA are effective the date of enactment

(August 14, 2008). However, certain amendments are effective either prospectively or

retroactively. Unless otherwise noted, the amendments discussed below are effective the date of

enactment. Also, unless otherwise noted, authorizations for the appropriation of funds for

discretionary grant programs are provided for FY2009 through FY2014. See Appendix for a

complete list of authorizations of appropriations in the HEA, as amended by the HEOA.

The remainder of this report is divided into two parts. The first part is organized in a manner that

corresponds with the organization of the HEA and identifies and describes amendments the

HEOA makes to the HEA. The second part describes changes the HEOA makes to other laws and

the studies and reports it requires.

Amendments to the Higher Education Act

Title I: General Provisions

Title I of the HEA specifies general provisions and definitions that govern most of the programs

authorized by the HEA. It includes many institutional reporting requirements, important

definitions such as that of an “institution of higher education” (IHE), and authorization of a

performance based organization (PBO) to administer federal student aid within ED. The HEOA

adds a new Part E to Title I, which specifies lender and institution requirements relating to

education loans. Major changes to Title I made under the HEOA are identified and described

below. In addition to these changes to the HEA, § 119 of the HEOA establishes a prohibition

against IHEs using any federal funds awarded under the HEA for lobbying purposes or to

influence grantmaking processes; however, this provision is not added to the HEA.

Part A: Definitions

Part A of Title I of the HEA is comprised of definitions that are applicable to certain parts of the

act. The HEOA amends a number of previously existing definitions and adds several new

definitions, including ‘authorizing committees,’ ‘critical foreign language,’ ‘distance education,’

‘diploma mill,’ ‘early childhood education,’ ‘poverty line,’ ‘universal design,’ and ‘universal

design for learning.’

Changes to the Definition of an Institution of Higher Education

The HEA contains two definitions of “institution of higher education” (IHE), which are primarily

used to qualify entities as eligible to receive student or institutional assistance authorized under

the act. A general definition of an IHE is specified at HEA, § 101 and applies for purposes other

than Title IV. For purposes of Title IV, a separate IHE definition is specified at HEA, § 102

(primarily for the purpose of expanding the definition to include for-profit institutions). Effective

July 1, 2010, the HEOA makes the changes described below to these previously existing

definitions of IHEs. In certain instances, the HEOA incorporates into statute provisions that had

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

previously been established through regulations promulgated by the Secretary of Education

(hereafter referred to as the Secretary).

Students within the Definition of an IHE. The definition of an IHE is based in part on the types of

students served by an entity. The HEOA explicitly adds home-schooled students to the types of

students who may be considered “regular” students at an IHE. The amended definition also

permits IHEs to admit as regular students individuals who are dually or concurrently enrolled in

the IHE and at a secondary school.

Types of Institutions within the Definition of an IHE. To the delineated types of entities that may

be considered IHEs, the HEOA explicitly adds graduate-only institutions, as well as institutions

that award a degree that is acceptable for admission to a graduate or professional degree program

(subject to review and approval by the Secretary).

IHEs Outside of the United States. The provisions in Title I, Part A defining the eligibility of

foreign IHEs to participate in FFEL (Title IV, Part B) are amended as follows. (Foreign schools

are excluded from participating in any other HEA programs.) Under the pre-HEOA definition,

foreign schools, (including in certain circumstances, proprietary, or for-profit, institutions), were

permitted to certify FFEL program loans for their students who are from the United States. The

only foreign proprietary institutions permitted to participate had been graduate medical schools

and veterinary schools. Effective July 1, 2008, the Title IV definition of IHE is amended to extend

eligibility to participate in the FFEL program to proprietary foreign nursing schools, contingent

on the schools meeting certain requirements.

Elimination of the “90/10 Rule” for Proprietary Institutions from the Definition of an IHE. To

ensure that for-profit institutions do not derive all of their income from Title IV student aid, the

definition of an IHE—prior to enactment of the HEOA—included a provision that proprietary

institutions derive at least 10% of their revenues from non-Title IV sources. Failure to meet this

requirement resulted in the loss of Title IV eligibility. 8 The HEOA eliminates the 90/10 rule as a

condition of institutional eligibility by removing it from the Title I, Part A definition of an IHE;

but the HEOA retains the effect of the provision by making it part of the Program Participation

Agreement (PPA) required under Title IV, Part G (see below).

Part B: Additional General Provisions

Title I, Part B of the HEA consists of provisions and other requirements that are generally

applicable to IHEs participating in programs authorized by the act. The HEOA amends and

restructures provisions establishing the National Advisory Committee on Institutional Quality and

Integrity (NACIQI), though without significantly altering NACIQI’s purpose of advising the

Secretary on decisions related to recognition of accrediting agencies. The HEOA also reauthorizes

the Drug and Alcohol Abuse Prevention program established under Title I, Part B and makes the

following additional changes.

For additional information, see CRS Report RL32182, Institutional Eligibility and the Higher Education Act:

Legislative History of the 90/10 Rule and Its Current Status, by (name redacted).

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Sense of Congress Regarding the Rights of Institutions and Students

The HEOA extends the Protection of Student Speech and Association Rights provisions with a

Sense of Congress statement that the diversity of institutions and educational missions is a

strength of the American higher education system; IHEs should have different missions and

design their academic programs in accordance with their educational goals; IHEs should facilitate

the free and open exchange of ideas; students should not be intimidated or discouraged from

speaking out; students should not be discriminated against; students should be treated equally and

fairly; and any sanctions imposed on students should be done objectively and fairly. This

provision has commonly been referred to as being similar to an “academic bill of rights,”

although it is significantly different than the Sense of Congress resolution regarding an academic

bill of rights that was introduced in the House in 2003.9

College Planning and Financing Information

The HEOA adds a number of new requirements to Title I, Part B relating to how students and

families plan for college and what information is available to them to make informed college

selection choices. Provisions include requiring the Secretary to improve the usefulness and

accessibility of department-provided college planning and financial aid information; collecting

and making information available online about federal aid available from other federal

departments and agencies; developing a new website with federal and state financial aid

information for members of the Armed Forces, veterans, and their dependents; and developing a

website that provides financial assistance information for students interested in science,

technology, engineering, and mathematics (STEM) and which includes both public and private

sources of aid. Other new information-related provisions are described in further detail below.

Diploma Mill Information. The HEOA requires the Secretary, working with other federal

agencies, to publish information on identifying and avoiding diploma mills, which are

unaccredited entities that offer degrees, diplomas, or certificates to individuals for a fee and that

require the individual to complete little or no educational coursework.

IHE Data Reporting Requirements. Within one year of the date of enactment of the HEOA, the

Secretary is required to make publicly available specified information about institutions, such as

data related to student enrollment, graduation rates, cost of attendance, student aid, and specific

services offered by the institution. Many of the data items that are delineated in the HEOA are

currently collected in some form through the Integrated Postsecondary Education Data System

(IPEDS) or other data collection efforts maintained by ED. However, the HEOA expands and

codifies these data reporting requirements in statute. These new Title I, Part B reporting

requirements are in addition to those added under Title I, Part E and Title IV, Parts B and D (all

related to student loans); and Title IV, Part G (in general).

Prohibition Against a Federal Student Record Database. The HEOA provides that, except under

specific circumstances, the development, implementation, or maintenance of a federal database

containing the personally identifiable information of students is prohibited. This prohibition does

not apply to systems necessary for the operation of programs authorized under Titles II, IV, or VII

of the HEA, and that were in use the day before enactment of the HEOA.

See H.Con.Res. 318 in the 108th Congress.

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State Higher Education Information System Pilot Program. The HEOA establishes a competitive

grant program to support the development of state-level postsecondary education data systems in

up to five states.

Part C: Cost of Higher Education

Title I, Part C of the HEA includes provisions focused on collecting data on college costs and

prices. The HEOA establishes new requirements under Title I, Part C related to the increasing

price of college and universities. 10 (Title VIII, Part M, Low Tuition, described below, authorizes a

new program also related to cost.) The new requirements, which are generally aiming to address

college affordability issues through enhanced transparency and consumer information are

described below.

College Affordability and Transparency Lists

Beginning July 1, 2011, the Secretary must annually publish six lists related to college

affordability, by institution sector (e.g., public four-year institutions):

•

the 5% of institutions with the highest tuition and fees,

•

the 5% of institutions with the highest net price,

•

the 5% of institutions with the largest percentage increase in tuition and fees over

the last three academic years (unless the increase was less than $600),

•

the 5% of institutions with the largest percentage increase in net price over the

last three academic years (unless the increase was less than $600),

•

the 10% of institutions with the lowest tuition and fees, and

•

the 10% of institutions with the lowest net price.

Institutions listed on the third or fourth lists are subject to reporting requirements related to the

reasons for cost increases and steps being taken to reduce costs. The provision defines the term

“net price.”

State Maintenance of Effort

A new state “maintenance of effort” (MOE) provision is added under Title I, Part C, which

requires states to maintain appropriations for the general operations of public IHEs and student

financial aid to private IHEs in each academic year beginning on or after July 1, 2008, that equal

or exceed the average appropriation over the preceding five years. If a state fails the MOE test,

the Secretary is required to withhold the state’s allotment of funds for the College Access

Challenge Grant Program (Title VII, Part E) “until such State has made significant efforts to

correct such violation.” ED must also report state-level data related to the percentage change in

state spending per full-time equivalent student enrolled at a public IHE, the percent change in

average tuition and fees at public IHEs, and the percentage change in need-based aid and meritbased aid provided by the state.

For additional information, see CRS Report RL34224, College Costs and Prices: Issues for Reauthorization of the

Higher Education Act, by (name redacted) and (name redacted).

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Institution Pricing Summary and Net Price Calculator

The Secretary is required to add an institution pricing summary page to the College Navigator

website, to be updated annually, and which must include data on tuition and fees, net price, and

the average annual percentage change and average annual dollar change in tuition and fees and

net price. In addition, ED must develop a net price calculator that would enable current or

prospective students to estimate their net price of attendance at an institution. IHEs are

subsequently required to make a net price calculator available to current and prospective students.

ED must also develop a multi-year tuition and fees calculator to enable students to determine a

nonbinding estimate of the price of a postsecondary education for the normal duration of an

undergraduate or graduate program.

Textbook Prices

The HEOA established a series of new provisions under Title I of the HEA that affect textbook

publishers. Effective July 1, 2010, publishers must provide faculty members with various

information about textbooks, including price information and copyright dates of previous

editions. Also, except under certain circumstances, textbook publishers must “unbundle”

materials, making textbooks, and each supplement to a textbook, available as a separate item.

Institutions must publish in online course pre-registration and registration materials information

about all required texts that will be used in the class, as well as the retail price of course materials.

Finally, IHEs must provide to any college bookstore, upon request, its course schedule, required

or recommended materials for each course, and course enrollment information.

In-state Tuition for Active Duty Servicemembers and Families

HEOA amendments that take effect July 1, 2009, require states to provide members of the Armed

Forces on active duty, their spouses, and their dependent children with in-state tuition at public

institutions if they are domiciled or stationed on permanent duty within the state for more than 30

days. States must also allow such individuals to continue to pay in-state tuition if they are

continuously enrolled, even if the member’s permanent duty station is relocated outside of the

state. No federal funds are made available to assist states in complying with this requirement; and

no penalties are specified for non-compliance.

Part D: Delivery of Student Financial Assistance

The HEOA includes technical and other minor amendments to provisions concerning the

Performance-Based Organization which administers Title IV student financial aid programs.

Part E: Lender and Institution Requirements Relating to Education Loans

A new Title I, Part E establishes disclosure and reporting requirements which are applicable to

lenders and IHEs with respect to federal student loans made under Title IV and private education

loans. The newly established reporting and disclosure requirements are summarized below.

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Loan Disclosure and Reporting Requirements for Institutions

Institutions participating in preferred lender arrangements, in which the IHE recommends,

promotes, or endorses the education loan products of certain lenders, must disclose on their

websites and in informational materials: the maximum amount of Title IV grant and loan aid

available to students; detailed information about the terms and conditions of loans; and that under

the FFEL program, the institution is required to process applications to obtain a loan from any

eligible lender. In addition, institutions must provide prospective borrowers of private education

loans with the information required to be disclosed under § 128(e) of the Truth in Lending Act

(see Title X, below); inform them that they may qualify for federal student aid under Title IV; and

inform them that the terms and conditions of federal student loans may be more favorable than

the terms and conditions of private education loans.

Disclosure and Certification Requirements for Lenders

Lenders of federal student loans must disclose to borrowers written information about the terms

and conditions of loans at or prior to disbursement. Lenders of private education loans are

required to disclose to borrowers, detailed information on the terms and conditions of private

education loans. In addition, lenders of FFEL program loans are required to disclose to the

Secretary, information on expenses paid to institutions; and must annually certify their

compliance with the requirements of the HEA.

Model Disclosure Form

Not later than 18 months after the date of enactment, the Secretary, in coordination with the

Board of Governors of the Federal Reserve System, is required to determine the minimum

information that entities participating in preferred lender arrangements must make available to

borrowers. Subsequently, they must develop a model disclosure form that may be used by IHEs

and lenders for purposes of disclosing information about FFEL and DL program loans and private

education loans to prospective borrowers.

Self-Certification Form for Private Education Loans

The Secretary, in consultation with the Board of Governors of the Federal Reserve System, is

required to develop a self-certification form for private education loan applicants. Individuals

applying for private education loans must complete and sign the form, using information

available from the financial aid office of their IHE. Applicants must enter the following on the

self-certification form: (1) cost of attendance (COA); (2) expected family contribution (EFC); (3)

estimated financial assistance (EFA); (4) COA minus EFA; and (5) EFC, plus the difference

between COA and EFA.

This form must also disclose to loan applicants (1) that the applicant may qualify for federal,

state, or institutional aid in addition to a private education loan, (2) that the applicant is

encouraged to discuss the availability of federal, state, and institutional aid with the financial aid

office, (3) that a private education loan may affect the applicant’s eligibility for federal, state, or

institutional aid, and (4) that the information the applicant is required to provide on the form is

available from the financial aid office.

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Title II: Teacher Quality Enhancement

Title II of the HEA authorizes grants for improving teacher education programs, strengthening

teacher recruitment efforts, and providing training for prospective teachers. This title also

includes the reporting requirements for states and IHEs regarding the quality of teacher education

programs. Amendments made to Title II under the HEOA include the following.

Part A: Teacher Quality Partnership Grants

Part A of Title II authorizes grants for improving teacher education programs, strengthening

teacher recruitment efforts, and providing training for prospective teachers.11 Prior to the HEOA,

45% of Title II, Part A funds were to be used to award State grants, and 10% were to be used to

award Recruitment grants; however, this requirement had been overridden in recent years by

language passed through appropriations legislation and ED had not awarded a new State grant

since FY2005, nor a new Recruitment grant since FY2007. Under the HEOA amendments, both

the State Grant and Recruitment Grant programs are eliminated, and 100% of Title II, Part A

funds are authorized for the Partnership Grant program. Amendments made by the HEOA to the

Partnership Grant program include the following.

Changes to Eligible Partnerships

Prior to the HEOA, under the Partnership Grant program, an eligible partnership included three

entities: a “partner institution,” a “school of arts and sciences” at a higher education institution,

and a “high need local educational agency” (LEA). The HEOA amends the definition of an

eligible partnership to require two additional partners (1) either a “high-need school” or “highneed early childhood education program,” and (2) a “school, department, or program of

education...within a 4-year institution.” The definition of a high-need LEA is amended to require

the LEA to serve either (a) not less than 20%, or (b) not fewer than 10,000 children who are from

families below the poverty line. The definition of a “partner institution” is amended to include

two-year IHEs that offer a dual program with a four-year institution.

New Uses of Partnership Grant Funds

Prior to the HEOA, Partnership grantees were required to use their funds for program reforms,

clinical experience, and professional development; and allowable uses included parental

involvement, dissemination and coordination, leadership skills, and teacher recruitment. Under

the HEOA, Partnership Grant funds are authorized to be used for either a Pre-Baccalaureate

Preparation program, a Teacher Residency program, or both. Funds may also be used for a

Leadership Development program, but only in addition to one of these other two uses. Activities

authorized by the HEOA amendments are described below.

Pre-Baccalaureate Preparation Program. The HEOA specifies a variety of activities to be carried

out under a Pre-Baccalaureate program which are similar to the use of funds under the prior

Partnership Grant program. The act describes (in much greater detail than in previous law) how

program funds for a Pre-Baccalaureate program must be used for program reforms, clinical

For additional information, see CRS Report RL31882, Teacher Quality Enhancement Grants (Title II, Part A of the

Higher Education Act): Overview and Reauthorization Issues, by (name redacted).

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experience, induction, early childhood education, recruitment, and literacy training. Program

funds may also be used for a variety of other activities including “performance-based pay” for

teachers who participate as mentors.

Teacher Residency Program. A new Teacher Residency program is established under which

recent college graduates and mid-career professionals (who are not teaching) may receive a oneyear stipend to obtain graduate-level teacher training in exchange for agreeing to serve three years

in a high-need school immediately upon completion of the program.

Leadership Development Program. A new Leadership Development program is established to

prepare students for careers as superintendents, principals or other school administrators, as well

as to support activities that promote strong leadership skills among other mandatory activities.

Other Partnership Grant Amendments

The HEOA amends several administrative and other partnership grant requirements. The act

increases the non-Federal funds matching requirement for Partnership grants from 25-50% to

100%. The HEOA enhances the reporting requirements for States and teacher preparation

programs, including a required Report Card (with specified data requirements) from all programs

that enroll students receiving Federal assistance under the HEA for both traditional programs as

well as those that employ alternative routes to state certification.

Part B: Enhancing Teacher Education

Prior to the amendments made by the HEOA, Title II, Part B authorized a program for Preparing

Tomorrow’s Teachers to Use Technology. The HEOA eliminates this program and establishes five

new programs.

Subpart 1, Preparing Teachers for Digital Age Learners

The HEOA amendments establish a program called Preparing Teachers for Digital Age Learners,

authorizing the Secretary to award competitive grants to or enter into contracts or cooperative

agreements with consortia to (1) prepare graduate teacher candidates to use modern information,

communication, and learning tools; (2) strengthen and develop partnerships in the field of teacher

preparation to ensure technology-rich teaching and learning environments; and (3) assess the

effectiveness of IHEs in preparing teachers to implement technology-rich teaching and learning

environments.

Subpart 2, Hawkins Centers of Excellence

The HEOA amendments establish a program called Honorable Augustus F. Hawkins Centers of

Excellence, authorizing the Secretary to awards competitive grants to eligible minority-serving

institutions to ensure that current and future teachers are highly qualified. Grantees are to use

funds to support activities similar to those supported under the Title II, Part A programs.

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Subpart 3, Teach to Reach Grants

The HEOA amendments establish a program called Preparing General Education Teachers to

More Effectively Educate Students With Disabilities, authorizing the Secretary to award Teach to

Reach competitive grants to eligible partnerships to improve the preparation of general education

teacher candidates’ ability to instruct students with disabilities in general education classrooms.

Subpart 4, Adjunct Teacher Corps

The HEOA amendments establish a program called Adjunct Teacher Corps, authorizing the

Secretary to award competitive grants to eligible entities to identify, recruit, and train qualified

individuals with subject matter expertise in mathematics, science, or critical foreign languages to

serve as adjunct content specialists in schools that have a shortage of such expertise.

Subpart 5, Graduate Fellowships to Prepare Faculty in High-Need Areas

The HEOA amendments establish a program called Graduate Fellowships to Prepare Faculty in

High-Need Areas at Colleges of Education, authorizing the Secretary to award competitive grants

to eligible IHEs to provide fellowships to graduate students preparing to become education

professors who will prepare highly-qualified teachers in STEM, special education, or limited

English proficient education. Those receiving a fellowship must fulfill a service agreement by

teaching one year in a teacher preparation program for each year in which they received a

fellowship.

Title III: Institutional Aid

Titles III and V are the primary sources of institutional support authorized by the HEA, including

support for minority-serving institutions (MSIs).12 Both titles award grants to IHEs to strengthen

their academic, administrative, and financial capabilities. Title III, Part A includes provisions for

IHEs that serve large numbers of needy students, Tribally Controlled Colleges and Universities

(TCCUs), and Alaska Native and Native Hawaiian-Serving Institutions (ANNHSIs); and Title III,

Part B establishes programs to support Historically Black Colleges and Universities (HBCUs) and

Historically Black Graduate Institutions (HBGIs). Title V authorizes funds for Hispanic-Serving

Institutions (HSIs); and Titles II, VI, VII, and VIII authorize other MSI programs (see below).13

Part A: Strengthening Institutions

Title III, Part A provides grants to eligible IHEs to support a variety of activities, including

improving facilities, faculty development, curriculum development, student services, and others.

Prior to passage of the HEOA, this part included three programs: Strengthening Institutions (for

For additional information, see CRS Report RL31647, Title III and Title V of the Higher Education Act: Background

and Reauthorization Issues, by (name redacted).

Related MSI programs added or amended by the HEOA, but in parts other than Title III, Part A, include the

following: Title II, Part B authorizing teacher education program support for MSIs; Title VI, Part C authorizing

international affairs program support for MSIs; Title VII, Part A authorizing master’s degree program support for

HBCUs and PBIs; and Title VIII, Part G authorizing STEM program support for ANNHSIs.

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IHEs serving needy students), TCCU, and ANNHSI. The act amends the allowable uses of funds

for these programs and establishes three new MSI programs, which are described below.14

Predominantly Black Institutions

The HEOA establishes a new Title III, Part A program authorizing the Secretary to award grants

to Predominantly Black Institutions (PBIs). Unlike HBCUs, which are institutions founded during

the era of segregation with a mission of educating black students, PBIs are defined as colleges

and universities without a specific historical mandate to enroll African Americans, but whose

student populations are now over 40% black. Although other programs under Title III, Part A

define institutional eligibility criteria collectively under § 312(b),15 the PBI program establishes

its own criteria. To be eligible for a PBI grant, IHEs must be accredited (or making progress

toward accreditation); be legally authorized by the state to grant undergraduate degrees; not be an

HBCU or HSI; enroll at least 1,000 undergraduates (half of which must be in degree programs);

and have expenditures per student that are low compared to similar IHEs. In addition, PBIs must

meet a two-part test for enrolling underprivileged students: (1) at least 50% of students must

receive Pell Grants, come from a family receiving means-tested federal benefits, attend a high

school meeting certain criteria under Title I of the Elementary and Secondary Education Act

(ESEA), or be first-generation college students; and (2) at least 50% of students must be either

from low-income families (earning less than 150% of the Census definition of poverty) or be first

generation college students.

PBI grants may be used for activities similar to those authorized under other Title III Part A

programs. Additional uses of funds include academic instruction, enhancing teacher education,

academic outreach to elementary and secondary students, and contributions on a matching basis

towards an endowment fund. Grants are to be divided among eligible IHEs based on a number of

factors, for a minimum grant of $250,000.

Native American-Serving, Nontribal Institutions

The HEOA establishes a new Title III, Part A program to support Native American-Serving,

Nontribal Institutions (NASNIs). NASNIs are defined as IHEs that enroll more than 10% Native

American students and meet HEA, § 312(b) eligibility requirements, but are not TCCUs, and are

not receiving funds under any other Title III or Title V program. Grants are generally to be used to

improve and expand capacity to serve Native Americans and low-income students; and are for a

minimum of $200,000.

Although the HEOA establishes three new programs under Title III, Part A, the CCRAA already provided mandatory

appropriations for institutions serving these populations. The HEOA moves the CCRAA mandatory appropriations for

MSIs from Title IV, Part J to Title III, Part F, and retains the definitions and grant criteria as separate from the Title III,

Part A definitions and criteria.

Under § 312(b), IHEs must have expenditures per student that are low compared to similar IHEs; be legally

authorized by the state to award undergraduate degrees; be accredited (or making progress toward accreditation); and

enroll needy students—defined as either having a student body in which at least half receive Title IV financial aid or in

which more than an average number (compared to similar IHEs) receive Pell Grants. Under Title III, Part B, eligibility

for the HBCU program is defined in § 322, and is based on being established prior to 1964 for the purpose of educating

Black Americans. Specific institutions eligible for the HBGI program are delineated in § 326(e).

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Asian American and Native American Pacific Islander-Serving Institutions

The HEOA establishes a new Title III, Part A program to support Asian American and Native

American Pacific Islander-Serving Institutions (AANAPISIs). AANAPISIs are defined as IHEs

enrolling more than 10% Asian American or Native American Pacific Islander 16 students, must

meet HEA, § 312(b) eligibility requirements, must not be TCCUs, and must not be receiving

funds under any other Title III or Title V program. Grants are generally to be used to improve and

expand capacity to serve the targeted students and low-income students.

Part B: Historically Black Colleges and Universities

Title III, Part B of the HEA authorizes assistance to HBCUs and HBGIs. The HBCU program

provides formula grants to eligible IHEs that were founded prior to 1964 to educate African

Americans, to be used for similar purposes as Title III, Part A grants. The HEOA lowers the

minimum allotment to HBCUs to $250,000 from $500,000. In order to receive a grant, the

amendments require HBCUs to have enrolled Pell Grant recipients, to have students successfully

graduate, and to have alumni attending graduate programs in which black students are

underrepresented.

Historically Black Graduate Institutions

Also under Title III, Part B, the HBGI program provides assistance to eligible institutions to

increase the number of African Americans in certain professional fields. The HEOA adds six

IHEs to the specified list of institutions eligible to receive HBGI grants under HEA, § 326.17 Hold

harmless provisions, however, protect funding for the previously included 18 IHEs, and only

funding above that aggregate amount may be awarded to the newly added IHEs. No IHEs may

receive HBGI grants while also receiving grants under the new Title V, Part B HSI graduate

program or the new Title VII, Part A HBCU and PBI master’s degree programs.

Part C: Endowment Challenge Grants

While the program has not been funded since FY1995, Title III, Part C authorizes a grant program

for IHEs eligible for Title III programs to assist them in increasing their endowments.

Endowment Challenge Grants award amounts are increased by the HEOA, with the minimum

raised from $50,000 to $100,000, and the maximum raised from $500,000 to $1,000,000.

Part D: HBCU Capital Financing

Title III, Part D authorizes a program which provides federal insurance for bonds issued to

support capital financing projects at HBCU, up to a maximum outstanding principal and interest

limit. Under the HEOA amendments, maximum amounts for capital programs are increased, with

the total federal bonding authority raised to $1.1 billion. The HEOA makes other technical

Native American Pacific Islanders are defined as native aboriginal people of Pacific island territories and possessions

of the United States.

The added institutions are Alabama State University, Prairie View A&M University, Delaware State University,

Langston University, Bowie State University, and the University of the District of Columbia David A. Clarke School of

Law.

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amendments to this program, including changes to the membership of the HBCU Capital

Financing Advisory Board.

Part E: Minority Science and Engineering Improvement Programs

The HEOA adds two new programs as a second subpart of Title III, Part E. (The first subpart

authorizes the Minority Science and Engineering Improvement Program.) First, the purpose of the

new YES Partnerships Grant Program is to encourage elementary and secondary minority

students to pursue careers in science, technology, engineering, and mathematics (STEM) fields.

Grants are for a minimum of $500,000 and must be matched by non-Federal funds. Under the

second program, the Secretary is authorized to enter into a contract for Promotion of Entry into

STEM Fields.

Part F: Mandatory Appropriations for Minority-Serving Institutions

The Strengthening Historically Black Colleges and Universities and Other Minority-Serving

Institutions program, established at Title IV, Part J, under the CCRAA, provides mandatory

appropriations for programs supporting MSIs. The HEOA redesignates these programs under

Title III, Part F, of the HEA, 18 and in so doing eliminates the eligibility of for-profit IHEs to

participate. 19 Also, the HEOA adds new mandatory appropriations to support master’s degree

programs at HBCUs and PBIs under Title VIII, Part AA (discussed under Title VIII, below).

Mandatory appropriations to MSIs are shown in Appendix.

Part G: General Provisions

The HEOA provides the Secretary waiver authority in relation to Title III programs for IHEs

affected by the Gulf Coast Hurricanes of 2005. The act also increases authorizations of

appropriations for Title III programs through FY2014. Note that these discretionary

authorizations are in addition to the mandatory appropriations; both are shown in Appendix.

Title IV: Student Assistance

Programs authorized under Title IV are the primary source of federal aid to support postsecondary

education. The largest Title IV student aid programs are the Pell Grant program, authorized under

Part A; and the FFEL and DL programs, authorized under Part B, and Part D, respectively. Title

IV, Part A also authorizes the Academic Competitiveness (AC) Grant and National Science and

Mathematics Access to Retain Talent (SMART) Grant programs, the federal TRIO programs and

the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), the

Federal Supplemental Educational Opportunity Grant (FSEOG) program, and the Leveraging

Educational Assistance Partnership (LEAP) program. The Federal Work-Study (FWS) program is

authorized under Part C, and the Federal Perkins Loan program is authorized under Part E. Rules

for need analysis are specified in Part F. General provisions relating to student assistance, and

requirements for program integrity are specified under Part G, and Part H, respectively. The

Conforming amendments retained the definitions of PBIs, NASNIs, and AANAPISIs under Title III, Part F. These

institutional categories are separately defined under new programs established by the HEOA under Title III, Part A.

In general, for-profit IHEs are only eligible to participate in programs under Title IV of the HEA.

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parent PLUS Loan pilot auction program is authorized under Part I. Amendments made by the

HEOA to Title IV of the HEA are described below.

Part A: Grants to Students in Attendance at IHEs

Title IV, Part A authorizes numerous grant programs for students who attend eligible institutions

participating in Title IV programs; and also authorizes federal early outreach and student services

programs.

Subpart 1: Pell and AC/SMART Grants

The Federal Pell Grant program is the single largest source of grant aid for postsecondary

education attendance funded by the federal government.20 The AC/SMART grant programs

provide additional aid to certain Pell-eligible students.21

Federal Pell Grant Program

The CCRAA amended and reauthorized the Federal Pell Grant Program. The CCRAA

amendments provided mandatory appropriations to (1) eliminate the tuition sensitivity provision

and (2) provide additional funding for Pell Grant awards through 2017, as shown in Appendix.

Under the HEOA, the Pell program is further amended as described below. Note that the HEOA

also authorizes an Early Federal Pell Grant Commitment Demonstration Program under Title

VIII, Part Y, which is described in a separate section below.

Maximum and Minimum Pell Grant Awards. Under the HEOA amendments, the maximum

authorized Pell Grant award amounts22 are established as $6,000 for AY2009-2010, and

maximum award amounts increase incrementally to $8,000 for AY2014-2015, as shown in Table

1, below. The authorized maximum represents discretionary appropriations and does not count

mandatory add-ons to grants that were included in the CCRAA. The mandatory add-on has the

effect of increasing the maximum Pell award, but only for those students who qualify for the

maximum discretionary appropriated award amount; these amounts are also shown in Table 1. In

addition, the minimum Pell Grant award amount is changed from $400, to 10% of the

appropriated maximum award amount, with a “bump” for students who would otherwise qualify

for at least 5% of the appropriated maximum award amount to receive 10% instead. For example,

if for FY2009, the AY2009-2010 appropriated maximum Pell Grant were to be $5,000, then the

minimum grant would be $500, and any student who qualifies for an award amount between $250

and $499, would receive $500.

For additional information, see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act:

Background and Reauthorization, by (name redacted).

For additional information, see CRS Report RL33457, Academic Competitiveness Grants: Background, Description,

and Selected Issues, by (name redacted).

It is important to distinguish the maximum authorized Pell Grant award amount from the maximum appropriated

award amount. The authorizing committees authorize a target maximum Pell Grant award amount in the HEA, whereas

the appropriations committees establish actual maximum Pell Grant award amounts as part of annual appropriations

measures. In most years, the maximum appropriated award amount has been less than the maximum authorized award

amount.

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Table 1. Maximum Authorized Federal Pell Grant Award Amounts, Academic Years

2008-2009 through 2014-2015

Appropriated ($)

Authorized ($)

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Discretionary

4,241

6,000

6,400

6,800

7,200

7,600

8,000

Mandatory

490

690

1,090

Total

4,731

6,490

7,090

7,490

8,290

7,600

8,000

Source: Compiled by CRS, from the HEOA and the CCRAA.

Note: Fiscal year appropriations fund the succeeding academic year grants. For example, FY2008 funds Federal

Pell Grants for AY2008-2009. Eligibility for a Federal Pell Grant is calculated based upon the discretionary

appropriated grant established annually in appropriations bills. For AY2008-2009 through AY2012-2013, if a

student qualifies for the maximum discretionary appropriated grant, the mandatory amount for that year is

awarded in addition.

Year-Round Pell Grants. Effective July 1, 2009, eligible students may receive so-called “yearround Pell Grants” as a result of the Secretary being authorized to award a second Pell Grant to

students during a single award year. For example, the additional Pell Grant award may support a

summer term in addition to the regular academic year. To qualify, students must be enrolled on at

least a half-time basis in either an associate’s or bachelor’s degree program.

Ineligibility as a Result of Involuntary Civil Commitment. In addition to a previously existing

provision making individuals serving in a federal or state penitentiary ineligible for Pell Grants,

the HEOA eliminates eligibility for individuals serving in involuntary civil commitment centers.

(These centers are used by some states as an alternative to prison for sexual offenders.)

Maximum Duration of Eligibility. The HEOA amendments introduce duration of eligibility

limitations for Pell Grants. Effective for students who receive their first Pell Grant on or after July

1, 2008, cumulative Pell Grant eligibility is limited to 18 full-time semesters (or the equivalent).

Auto-Zero EFC for Individuals Whose Parent or Guardian Died in a Post-9/11 War Zone.

Effective July 1, 2009, individuals who were under 24 years of age, or were enrolled at an IHE, at

the time their parent or guardian died while serving in the armed forces of the United States in

Iraq or Afghanistan, after September 11, 2001, are assigned an automatic $0 expected family

contribution (auto-zero EFC), for the entirety of the period they are eligible for a Pell Grant. An

auto-zero EFC would make a student eligible for a maximum Pell Grant award. It appears that the

assignment of an auto-zero EFC to such individuals will also increase their eligibility for other

forms of Title IV aid as well.

AC/SMART Grants

The American Competitiveness Grant program makes available two award types to students who

are eligible for Pell Grants and who meet certain academic requirements: AC Grants for first- and

second-year undergraduates who have completed a rigorous secondary school program; and

National SMART Grants for third- fourth-, and certain fifth-year undergraduates majoring in

certain fields of science, mathematics, or a critical foreign language. The HEOA amends the AC

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Grant program (as amended by the ECASLA)23 to provide authority for recognizing a “rigorous

secondary school program” to “the official designated for such recognition consistent with State

law” and to require this official to report such programs to the Secretary. It also makes other

technical corrections and waives master calendar and negotiated rulemaking for the changes to

the AC and SMART grant programs that were made under the ECASLA.

Subpart 2: TRIO and GEAR UP

Subpart 2 of Title IV, Part A authorizes Federal Early Outreach and Student Services Programs.

Chapter 1 of this subpart establishes the Federal TRIO programs and Chapter 2 authorizes the

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) program.

Federal TRIO Programs

The TRIO programs, Talent Search (TS), Upward Bound (UB), Student Support Services (SSS),

Ronald E. McNair Postbaccalaureate Achievement (MPA), and Educational Opportunity Centers

(EOC), each provide direct or indirect service support to students. Grants are competitively

awarded to institutions of higher education and other public and private institutions and agencies,

and are four or five years in duration. 24 Amendments made to the TRIO Programs under the

HEOA are described below.

Changes to Award Provisions. The HEOA clarifies that community-based organizations are

eligible TRIO award recipients, removes a requirement that secondary schools may be eligible

only in “exceptional circumstances,” and extends the duration for certain grants in order to

synchronize current award cycles. The HEOA extends the duration of TRIO grants from four to

five years; and increases the minimum grant amount for each of the TRIO programs to $200,000,

except for Staff Development grants which remain at $170,000. (Prior to the HEOA, TS and EOC

grants were capped at $180,000; UB and MPA grants were capped at $190,000; and evaluation

grants were capped at $170,000). The HEOA requires the Secretary to use specified outcome

criteria in evaluating TRIO programs and mandates that grantees’ prior experience be taken into

account when awarding grants. Note that a mandatory appropriation for years FY2008 through

FY2011 was enacted under the CCRAA to support additional Upward Bound awards, as shown in

Appendix.

Changes to Eligibility and Uses. The HEOA allows more than one TRIO grant to be awarded to

campuses under certain conditions and expands the definition of the term “veterans eligibility.”

Prior to the HEOA, the program authority for TS stated that the program should be designed to

encourage individuals who have not completed secondary or postsecondary programs, “but who

have ability to complete such programs, to reenter such programs.” The HEOA eliminates this

phrase and adds to the program authority language encouraging grantees to facilitate students’

application for financial aid. UB is amended to prohibit the Secretary from denying a student

participation in a project because the student will enter the project after the 9th grade; and the

stipend provision is amended to allow flexibility in defining the period for summer recess.

Amendments to the AC Grant program made under the ECASLA are described in CRS Report RL34452, The

Ensuring Continued Access to Student Loans Act of 2008, by (name redacted). The HEOA also changes the effective

date of those amendments from January 1, 2009, to July 1, 2009.

For additional information on the Federal TRIO programs, see CRS Report RL31622, Trio and GEAR UP Programs:

Status and Issues, by (name redacted).

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Under prior law, a list of permissible services was specified for each TRIO program. The HEOA

creates two subsections in each program which distinguish between required and permissible

services. It also expands the description of individuals to be served by each program to include

those who are Limited English Proficient, homeless, aging out of foster care, traditionally

underrepresented in postsecondary education, or disabled, as well as other disconnected students.

In recent years, the Secretary established an “absolute priority” for the UB program which set

rules regarding which high school students will be given priority for participation in the program

and called for an evaluation of the program using a control group of students who do not receive

UB services (see Federal Register on September 22, 2006 (71 Fed. Reg. 55447 et seq.)). The

HEOA prohibits the Secretary from proceeding with implementing or enforcing the absolute

priority for student eligibility. In addition to other new requirements placed on TRIO evaluations,

the Secretary is further prohibited from requiring a grantee to recruit students to serve as a

“control group” for purposes of program evaluation.

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR

UP)

GEAR UP seeks to increase disadvantaged students’ secondary school completion and

postsecondary enrollment by providing support services and by assuring students of the

availability of financial aid to meet college costs. Amendments made to GEAR UP by the HEOA

are described below.

Changes to Award Provisions. The HEOA maintains a grant period of six years; however, this

may be increased to seven years in the case of an entity that plans to provide services to students

through their first year of postsecondary education. The HEOA further retains the requirement

that the Secretary ensure that students served under the program will continue to receive

assistance through completion of secondary school. The application for GEAR UP is expanded

and the 50% matching requirement is amended to allow entities to accrue non-Federal funds over

the duration of the grant, to allow the match to be modified either at the time of the application or

in response to a petition, and to clarify what can count toward the match.

Changes to Eligibility and Uses. The HEOA amendments delineate early intervention grant

activities under categories of “required activities” and “optional activities.” The list of priority

students to be served by an entity not using a cohort approach is expanded to include homeless

youth and those “otherwise considered by the eligible entity to be a disconnected student.” State

grantees generally had been required to reserve 50-75% of funds received for scholarships, but

may now use less than 50% if other funds for scholarships can be demonstrated. State grantees

must notify students of their eligibility for scholarships and make scholarships available for

students upon completion of secondary school and enrollment in college. State grantees must

establish a scholarship trust fund containing amounts sufficient to cover the scholarship for each

student in each cohort and must return unused funds to a grantees’ trust fund for redistribution to

other eligible students; and any funds unused after redistribution must be returned to the

Secretary.

Subpart 4: LEAP and GAP

Subpart 4 of Title IV, Part A authorizes Grants to States for State Student Incentives, which

provide matching grant incentives for states to establish scholarship programs. Under the HEOA

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amendments, the maximum allowable Leveraging Educational Assistance Program grant is

increased from $5,000, to the lesser of $12,500 or a student’s cost of attendance. In addition, the

Special LEAP program is repealed and replaced with a new subsidiary program—Grants for

Access and Persistence (GAP). Like LEAP, GAP provides matching funds to states to support

state need-based scholarships. Federal funds may be used to contribute up to two-thirds of GAP

program costs, depending on certain conditions. GAP requires partnerships between states, IHEs,

philanthropic organizations, and private corporations. GAP grants fund early awareness and

outreach activities, support services, and scholarships that must be equal to average tuition and

fees at similar public IHEs, less any other federal or state aid. A key component to GAP is

annually notifying low-income students in grades 7 through 12 of the availability of financial aid

in general, and the GAP scholarships in particular. In addition to the general LEAP maintenance

of effort (MOE) requirement, GAP has a separate MOE provision requiring that each year’s state

contribution to GAP activities not be less than that for the prior year.25

Other Title IV: Part A Subparts

The HEOA repeals the Chapter 3 of Subpart 2, Academic Achievement Incentive Scholarships;

and Subpart 8, Learning Anytime Anywhere Partnerships programs. It reauthorizes Subpart 3,

Federal Supplemental Education Opportunity Grant program and increases the program’s

allowance for books and supplies used in the formula to allocate funds to IHEs. The act amends

the Subpart 5, Migrant and Seasonal Farmworker programs by making relatively minor

expansions to allowable services under the grants, increasing minimum allocations to $180,000

for both the High School Equivalency Program and the College Assistance Migrant Program, by

changing the distribution of funds among the activities, and by requiring increased data

collection. The HEOA amends the Subpart 6, Robert C. Byrd Honors Scholarship Program to

clarify that home-schooled children are eligible. It also changes definitions and funding

distribution provisions for the Subpart 7, Child Care Access Means Parents in School program. In

addition to establishing new requirements relating to disclosures, waivers, and evaluation, the

HEOA clarifies that Subpart 9, Teacher Education Assistance for College and Higher Education

(TEACH) Grant recipients studying in fields which are subsequently designated as no longer

high-need may fulfill their service agreements in their original field.

Part B: Federal Family Education Loan (FFEL) Program; and Part D: William D.

Ford Federal Direct Loan (DL) Program

The federal government operates two major student loan programs: the FFEL program,

authorized under Title IV, Part B, and the DL program, authorized Title IV, Part D. 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. Under the DL program, the federal government provides the loans to students and

their families, using federal capital (i.e., funds from the U.S. Treasury). While the two programs

rely on different sources of capital and different administrative structures, they both make

available essentially the same set of loans, with very similar terms and conditions: Subsidized

Stafford Loans and Unsubsidized Stafford Loans for undergraduate and graduate students; PLUS

The LEAP/GAP state MOE requirements under Title IV, Part A are not related to the general state MOE under Title

I, Part C, which ties consequences for a state’s failure to meet the MOE to the College Access Challenge Grant

Program under Title VII, Part E.

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Loans for parents of undergraduate dependent students and graduate students; and Consolidation

Loans through which borrowers may combine their loans into a single loan payable over a longer

term, that varies according to the combined loan balance. Amendments made by the HEOA to the

FFEL and DL programs are described below.

Loan Provisions Applicable to Military Personnel and Veterans

The HEOA includes amendments to loan terms and conditions that apply to current military

servicemembers and veterans of the armed forces.

Exclusion of Veterans’ Education Benefits from Being Treated as Estimated Financial Assistance

for Subsidized Stafford Loans. Effective July 1, 2010, all forms of veterans’ education benefits are

excluded from being treated as estimated financial assistance for purposes of determining a

student’s eligibility to borrow FFEL and DL program Subsidized Stafford Loans. At present, only

veterans’ education benefits received under the Montgomery GI Bill-Active Duty (MGIB-AD)

program are excluded from a student’s EFA. Note that similar provisions exclude veterans’

education benefits from the general Title IV need analysis calculation, as described under Part F,

below.

Extension of Protections under § 207 of the Servicemembers Civil Relief Act (SCRA) to Federal

Student Loans. Individuals who borrow loans under the FFEL and DL program loans after the

date of enactment, and who later enter military service, may have the interest rate on those loans

capped at 6% for the duration of their military service. Creditors must forgive interest above the

rate of 6% and may not accelerate repayment of the loans.26 For loans first disbursed on or after

July 1, 2008, on which the interest rate is reduced to 6% in accordance with § 207 of the SCRA,

the formula for determining special allowance payments (SAPs) to lenders shall take into account

the 6% interest rate, resulting in no reduction in SAPs to lenders.

No Accrual of Interest on DL Program Loans for Certain Active Duty Service Members. The

terms and conditions of DL program loans (but not FFEL program loans) for which the first

disbursement is made on or after October 1, 2008, must specify that interest will not accrue

during any period of up to 60 months while the borrower is serving on active duty or performing

qualifying National Guard duty in an area of hostilities during a war or national emergency.

Additionally, the Secretary is required to offer a Consolidation Loan under the DL program to any

borrower seeking to obtain such a loan for purposes of using the no accrual of interest for active

duty service members program. For Consolidation Loans, the benefit is only available with

respect to the portion used to repay loans first disbursed on or after October 1, 2008.

Disclosure and Information Requirements

The HEOA adds a number of requirements for IHEs, lenders, and other entities to provide

specified information to students, borrowers, or others. These requirements are discussed below.

Forbearance Information Requirements. The HEOA amends the FFEL program guaranty

agreements to require lenders, at the time of granting a borrower forbearance,27 to inform the

For additional information on the Servicemembers Civil Relief Act, see CRS Report RL34575, The Servicemembers

Civil Relief Act (SCRA): An Explanation, by (name redacted).

Forbearance is the practice under which lenders grant borrowers temporary relief from their obligation to repay

(continued...)

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borrower of the impact that the capitalization of interest will have on the total loan principal and

interest required to be repaid. At least once during every 180-day period in forbearance, lenders

must inform borrowers: that interest will continue to accrue during forbearance; of the total

amount of unpaid principal; of the amount of interest that has accrued since the last statement,

and when it will be capitalized; that accrued interest may be paid before it is capitalized; and that

borrowers may discontinue forbearance at any time.

Disclosures to Borrowers of Consolidation Loans. FFEL and DL program lenders are required to

disclose to borrowers of Consolidation Loans whether consolidation of FFEL or DL program

loans would result in the loss of any loan benefits, including loan forgiveness, cancellation, or

deferment; and that the consolidation of a Perkins Loan will result in a loss of the in-school

deferment benefit and loan cancellation benefits.

Disclosure of Terms and Conditions for Federal Student Loans. New requirements are added for

lenders to disclose to borrowers detailed information about the terms and conditions of FFEL and

DL program loans upon notification of approval of the loan, upon disbursement of the loan, upon

the start of repayment, and during repayment. Items required to be disclosed include information

on charges, fees, and the rate of interest; an explanation that if the borrower does not pay the

interest that accrues on unsubsidized loans while in school, the interest will be capitalized (i.e.,

added to the principal balance of the loan); a statement of the total cumulative balance owed to

the lender, and estimated monthly payments (or sample projections for Unsubsidized Stafford

Loans and PLUS Loans); information on repayment options and borrower benefits, such as

deferment, forbearance, and forgiveness; and information on the consequences of default.

Consumer Education Information. The HEOA amendments require guaranty agencies (GAs)

under the FFEL program to work with the IHEs they serve to develop and make available highquality and easy to understand educational programs and materials to provide training in

budgeting and financial management to prospective and enrolled students and their families. GAs

may use existing programs and materials to meet this requirement. Also, consumer education

information activities shall be considered default reduction activities.

FFEL Administration Provisions

The HEOA amends requirements related to entities involved in the guaranteed student loan

program in the following manner.

Restrictions on Inducements, Payments, Mailings, and Advertising by Guaranty Agencies. The

HEOA enhances previously existing restrictions on guaranty agencies to prohibit GAs from

offering specified types of inducements to any IHE or its employees in order to secure applicants

for FFEL program loans; and to lenders for purposes of being designated as the insurer of its

loans. The HEOA amendments also specify that GAs are prohibited from performing for any

institution, or paying to have performed, any function that it is required to perform under Title IV,

with the exception of exit counseling.

(...continued)

because the borrower is willing but unable to meet regular payment obligations. Forbearance can constitute lower

monthly payments than would otherwise be expected, or total cessation of payments (“complete” forbearance). Any

borrower under forbearance is liable for all accrued interest during the forbearance period.

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Voluntary Flexible Agreements. Under the HEA, the Secretary is authorized to enter into

voluntary flexible agreements with guaranty agencies in which certain requirements otherwise

applicable to guaranty agreements may be waived. The HEOA establishes new reporting

requirements for voluntary flexible agreements. The Secretary, in consultation with guaranty

agencies operating under voluntary flexible agreements, is now required to report annually to the

authorizing committees on outcomes with respect to program integrity, cost efficiencies,

delinquency prevention, default aversion, consumer education programs, and the availability and

delivery of student financial aid.

Expansion of Financial Institutions Treated as Eligible Lenders. Prior to the HEOA, most banks,

thrifts, and credit unions were prohibited from being eligible lenders under the FFEL program

unless FFEL program loans constituted no more than half of their consumer credit function. Now,

in accordance with the HEOA amendments, national and state chartered banks and credit unions

with assets of less than $1 billion may be eligible lenders under the FFEL program without regard

to whether the making or holding of FFEL program loans constitutes more than half of their

consumer credit function.

Disqualification as an Eligible Lender for Use of Incentives. Prior to the HEOA, to be an eligible

lender under the FFEL program, an entity was prohibited from offering inducements to IHEs,

conducting unsolicited mailings of student loan applications, offering loans as an inducement to

borrowers to purchase other products, and engaging in fraudulent or misleading advertising. With

the enactment of the HEOA, additional forms of incentives are specifically prohibited. These

include entering into a consulting arrangement with an IHE’s financial aid office; compensating

an employee of an IHE’s financial aid office for service on an entity established by the lender

(except reimbursement of expenses); performing, or paying to have performed, any function an

IHE is required to perform under Title IV (except exit counseling); paying or providing benefits

to a student to secure loan applications (unless otherwise employed by the lender); and specified

forms of inducements.

PLUS Loan Terms and Conditions

The HEOA amends provisions related to PLUS loans in the following manner.

Extenuating Circumstances for Making PLUS Loans. FFEL and DL program PLUS Loans are not

available to borrowers with adverse credit histories; and prior to enactment of the ECASLA,

lenders were required to consider a PLUS Loan applicant to have an adverse credit history if the

applicant was 90 days or more delinquent on a debt payment, unless extenuating circumstances

existed.28 An ECASLA amendment specifies that extenuating circumstances exist, if during the

period from January 1, 2007, through December 31, 2009, an applicant is no more than 180 days

delinquent on mortgage payments for a primary residence or medical bill payments; or if an

applicant is no more than 89 days delinquent on any other debt payments. The HEOA further

amends this provision, effective July 1, 2008, to specify that extenuating circumstances exist only

if an applicant is no more than 180 days delinquent on mortgage payments for a primary

residence or medical bills.

For additional information on changes to the FFEL and DL programs made under the ECASLA, see CRS Report

RL34452, The Ensuring Continued Access to Student Loans Act of 2008, by (name redacted).

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Grace Period and Deferment for PLUS Loans. The HEOA amends the terms and conditions of

PLUS Loans for which the first disbursement is made on or after July 1, 2008. For parent PLUS

Loans, borrowers may request a deferment for any period during which the student on whose

behalf the loan was borrowed would qualify for a deferment. With respect to graduate and

professional student PLUS Loans, the commencement of repayment is deferred until the end of a

six-month grace period beginning immediately after the borrower ceases to be enrolled in school

on at least a half-time basis.

Loan Forgiveness, Repayment, and Discharge Provisions

In addition to related provisions under Title IV, Part G, the HEOA extends and amends

requirements and programs related to loan forgiveness, repayment by others, and discharge. 29

Teacher Loan Forgiveness for Employment in Educational Service Agencies. The HEOA extends

loan forgiveness under the existing FFEL and DL Loan Forgiveness for Teachers programs to

new borrowers who, on or after October 1, 1998, had no outstanding balance on federal student

loans and who have been employed by an educational service agency as a full-time teacher for 5

consecutive years. Previously, the teacher loan forgiveness benefit was available only to eligible

teachers employed in certain low-income schools.

Loan Forgiveness for Service in Areas of National Need. A new discretionary program is

established to provide loan forgiveness of up to $2,000 in FFEL or DL program student loan debt

(other than PLUS Loans borrowed on behalf of a dependent student), per year during which a

borrower is employed full-time in an area of national need, with a maximum amount forgiven of

$10,000 for five years of service. 30 Specified areas of national need are early childhood educators;

nurses; foreign language specialists; librarians; certain highly qualified teachers; child welfare

workers; speech-language pathologists and audiologists; school counselors; certain public sector

employees; nutrition professionals; medical specialists; mental health professionals; dentists;

STEM employees; physical therapists; superintendents, principals, and other (school)

administrators; and occupational therapists. The program is available to borrowers on a first

come, first served basis; and is subject to the availability of appropriations. It is authorized to be

funded at such sums as may be necessary for FY2009-FY2014.

Loan Repayment for Civil Legal Assistance Attorneys. A new discretionary program is established

to provide loan repayment to individuals who enter into agreements with the Secretary to serve as

civil legal defense attorneys for not less than three years. In return for their service, the Secretary

shall assume the obligation to make payments of up to $6,000 per year, and $40,000 in the

aggregate, on federal student loans made under FFEL, DL and Perkins Loan programs (other than

PLUS Loans borrowed on behalf of a dependent student). The program is available on a first

come, first served basis; and is subject to the availability of appropriations. Appropriations are

authorized at $10 million for FY2009; and such sums as may be necessary for FY2010-FY2014.

For additional information, see CRS Report RL32516, Student Loan Forgiveness Programs, by (name redacted) and

CRS Report RS22762, Loan Forgiveness for Public Service Employees Under the William D. Ford Direct Loan

Program, by (name redacted).

This program is established at HEA, § 428K, replacing the Loan Forgiveness for Child Care Providers program,

which is repealed.

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Disability Discharge. At present, the Secretary discharges FFEL and DL program loans for

borrowers who die or become permanently and totally disabled. In accordance with the HEOA

amendments, effective July 1, 2010, FFEL and DL program loans will also be discharged for

borrowers who are unable to engage in any substantial gainful activity due to a physical or mental

impairment that can be expected to result in death or that has lasted continuously or can be

expected to last continuously for 60 months. Also, effective July 1, 2010, borrowers who have

been determined by the Secretary of Veterans Affairs to be unemployable due to a serviceconnected condition shall be considered permanently and totally disabled.

Default Rate Provisions

The HEOA amends provisions related to IHEs’ rates of students defaulting on federal student

loans in the following manner.

Cohort Default Rates Calculation. Prior to the HEOA amendments, cohort default rates have

been based on the number of current and former student borrowers of Subsidized Stafford Loans

and Unsubsidized Stafford Loans made under the FFEL and DL programs who enter repayment in

a particular fiscal year, and who default on their loans before the end of the next fiscal year (a

two-year period). Effective for FY2009 and succeeding years, the calculation of cohort default

rates is amended to be based on the number of current and former student borrowers of

Subsidized Stafford Loans and Unsubsidized Stafford Loans who enter repayment in a particular

fiscal year, and who default on their loans before the end of the second succeeding fiscal year (a

three-year period). (PLUS Loans to graduate and professional students are not included in the

calculation of cohort default rates.)

Also effective for FY2009 and succeeding years, a new life of cohort default rate is established

which measures, on a year-by-year basis, the cumulative percentage of current and former student

borrowers of FFEL and DL program Subsidized Stafford Loans, Unsubsidized Stafford Loans,

and graduate PLUS Loans who enter repayment in a particular fiscal year, and who have

defaulted on their loans since entering repayment. It appears that the new life of cohort default

rate is for informational purposes only.

Cohort Default Rate Penalties. Prior to the HEOA amendments, IHEs have been subject to the

loss of institutional eligibility to participate in Title IV programs for having high cohort default

rates for FFEL and DL program loans. At present, IHEs are subject to the loss of institutional

eligibility if their cohort default rate equals or exceeds 25% for 3 consecutive fiscal years.

Beginning with FY2012, IHEs will be subject to the loss of eligibility if their cohort default rates

(as measured according to the amended cohort default rate calculation) equal or exceed 30% for 3

consecutive fiscal years. The HEOA also establishes provisions for appeals for regulatory relief if

an IHE demonstrates that exceptional mitigating circumstances led to its high cohort default rate;

and requirements for IHEs with high cohort default rates to prepare default reduction plans.

Part C: Federal Work-Study (FWS) Program

The Federal Work-Study (FWS) program is authorized under Title IV, Part C, and provides

undergraduate, graduate, and professional students the opportunity for paid employment in a field

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related to their course of study or in community service.31 Amendments made by the HEOA to the

FWS program include the following.

Civic Education and Participation Activities

A new use of FWS program funds is added that allows IHEs to compensate students employed in

projects that teach civics in schools, raise awareness about the government, or increase civic

participation. Whereas the federal share of compensation may not exceed 75% for most types of

FWS employment, it may for civic education and participation activities.

Off-Campus Community Service

A new authorization of appropriations is established for grants to IHEs for purposes of

compensating students employed in community service jobs.

Part E: Federal Perkins Loan Program

The Federal Perkins Loan program is authorized under Title IV, Part E. The program provides

low-interest loans with favorable terms and conditions to undergraduate, graduate, and

professional students.32 Amendments to the Federal Perkins Loan program include the following.

Perkins Loan Collections and Fiscal Controls

The HEOA amends requirements for Perkins Loan program participation agreements to provide

that if an IHE has not knowingly failed to maintain an acceptable collection record with respect to

a defaulted Perkins Loan, the Secretary may allow the institution to refer the loan to the Secretary,

without recompense, except that once every six months, any amounts collected (less collection

costs) shall be repaid to the referring institution within 180 days of collection and shall be treated

as an additional federal capital contribution. The HEOA also restricts the authority of the

Secretary to require the mandatory assignment of defaulted Perkins Loans.

Perkins Loan Limits

The HEOA increases annual borrowing limits on Perkins Loans from $4,000 to $5,500 for

undergraduate students; and from $6,000 to $8,000 for graduate and professional students. It also

increases aggregate Perkins Loan limits from $20,000 to $27,500 for undergraduate students who

have completed two years of study; from $40,000 to $60,000 for graduate and professional

students; and from $8,000 to $11,000 for all other students.

For additional information on the FWS program, see CRS Report RL31618, Campus-Based Student Financial Aid

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

For additional information on the Federal Perkins Loan program, see CRS Report RL31618, Campus-Based Student

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

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Loan Discharge and Cancellation Provisions

The HEOA amends requirements related to the discharge and cancellation of Perkins Loans, as

described below.

Disability Discharge. At present, Perkins Loans are discharged by the Secretary for borrowers

who die or become permanently and totally disabled. In accordance with the HEOA amendments,

effective July 1, 2008, Perkins Loans will also be discharged for borrowers who are unable to

engage in any substantial gainful activity due to a physical or mental impairment that can be

expected to result in death or that has lasted continuously or can be expected to last continuously

for 60 months. Also, effective July 1, 2008, borrowers who have been determined by the

Secretary of Veterans Affairs to be unemployable due to a service-connected condition shall be

considered permanently and totally disabled.

Loan Cancellation for Public Service. Under the HEOA, loan cancellation is extended to

borrowers of Perkins Loans for full-time employment as public defenders, fire fighters, faculty

members at Tribal Colleges and Universities, librarians, and speech language pathologists, at the

rate of 15% for their first and second years of service; 20% for their third and fourth years of

service; and 30% for their fifth year of service. In addition, loan cancellation for service as a

member of the armed forces in an area of hostilities is also provided at those rates; whereas,

previously it was provided at the rate of 12.5% per year of service for up to four years.

Sense of Congress Regarding Federal Perkins Loans

The HEOA expresses the sense of Congress that the Federal Perkins Loan program is an

important part of federal student aid and that it should remain a campus-based program at

colleges and universities.

Part F: Need Analysis

Title IV, Part F provides requirements for calculating the contribution students and their families

are expected to pay toward the costs of postsecondary education, known as the expected family

contribution (EFC).33 What the EFC does not cover toward the total cost of attendance (including

tuition, room, board, books, supplies, and living expenses) is then defined as the student’s need

for assistance and is used in determining Title IV financial aid awards. The HEOA makes several

changes to the need analysis calculation.

General Changes to Need Analysis

For the purpose of calculating a student’s estimated financial need, the HEOA makes several

changes: (1) financial aid administrators may make adjustments to need based on nursing home

expenses, adult dependent care, or because of a family member who is a dislocated worker; (2)

financial aid administrators may award Unsubsidized Stafford loans to students whose parents

have ended financial support and refuse to complete the FAFSA; (3) the Secretary may use IRS

income information from the second preceding tax year for the purpose of designing a simplified

For additional information, see CRS Report RL33266, Federal Student Aid Need Analysis System: Background,

Description, and Legislative Action, by (name redacted).

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needs application; (4) technical corrections are made to the independent student definition as it

relates to foster youth; and (5) income from cooperative education programs is treated as

excluded income. Items 1 and 2, above, are effective as of the date of enactment of the HEOA,

whereas items 3, 4, and 5 are effective July 1, 2010. The HEOA also changes the effective date of

financial aid administrators’ professional judgement provisions enacted under the CCRAA to be

as of the date of enactment of the HEOA.

Need Analysis Changes Applicable to Military Personnel and Veterans

Effective July 1, 2010, the HEOA makes significant changes to the calculation of need for

military service members and veterans. For military service members living on base or receiving

a housing stipend, only board and not room is to be included in the total cost of attendance (COA)

for the purpose of calculating need. Also, the value of such housing or housing stipend is not to be

counted as untaxed income and benefits. Finally, any portion of veterans’ education benefits

received by the student (or the student’s spouse or parents) is excluded both from the student’s

“income or assets” and from the student’s “estimated financial assistance” (which is aid from

non-Title IV sources).

As a result of these changes, it appears that veterans may be eligible to receive veterans’

education benefits and Title IV grants, loans, or work study, which combined may exceed their

COA. For example, beginning August 1, 2009, a veteran who has served for three years on active

duty since September 11, 2001, will be eligible for veterans education benefits under the Post9/11 Veterans Education Assistance program34 that would pay an amount equal to tuition and fees

charged at the most costly public IHEs in the state, a $1,000 allowance for books, and a monthly

housing allowance equal to the basic allowance for housing payable to an E-5 (i.e., a junior noncommissioned officer) with dependents living in the area where the IHE in which the student is

enrolled is located. While assistance made available under the Post-9/11 Veterans Education

Assistance program may be substantial (in some instances in excess of $25,000), this and other

veterans education benefits will be excluded from being considered as either income or as part of

estimated financial assistance from other sources. Thus, it appears that the receipt of any type of

veterans education benefits will not impact an individual’s eligibility for, nor the amount of, needbased and non-need-based aid available under Title IV.

Part G: General Provisions

Part G contains an array of institutional requirements for Title IV participation and related

provisions. The HEOA specifies technical amendments to many of the general provisions which

govern Title IV student aid programs, the most significant of which are described below.

Financial Aid Application and Award Process Provisions

The HEOA amends provisions related to the process by which students are made aware of, apply

for, and are awarded student financial aid.

For additional information, see CRS Report RS22929, A Brief Overview of the Post-9/11 Veterans Educational

Assistance Act of 2008, by (name redacted); and CRS Report RL34549, A Brief History of Veterans’ Education

Benefits and Their Value, by (name redacted) and (name redacted).

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Regular and Simplified Applications for Student Aid. The HEOA reconstructs the entirety of

HEA, § 483, which establishes the Free Application for Federal Student Aid (FAFSA). In addition

to the FAFSA, this section authorizes the EZ-FAFSA for students qualifying under either the

Simplified Needs Test or Auto-Zero EFC provisions, as well as web-based versions of the FAFSA

and EZ-FAFSA. The section also requires the Secretary to pursue a process of streamlining the

FAFSA for reapplications and to ultimately reduce the number of data elements required from all

applicants by a goal of 50%. In so doing, the Secretary is to determine how Internal Revenue

Service (IRS) data may pre-populate the FAFSA in order to reduce income and asset questions on

the form and is given the authority to directly obtain such data from the IRS. The Comptroller

General is to convene a group including the Secretaries of Education and of the Treasury, the

Directors of the Office of Management and Budget and of the Congressional Budget Office, and

representatives of IHEs and of state higher education agencies, in consultation with the Advisory

Committee on Student Financial Assistance, to study alternative approaches for calculating the

EFC.

Early Application and Estimated Award Demonstration Program. A demonstration program is

authorized for dependent students to apply for and receive conditional aid offers based on income

and other data two years prior to the year of enrollment (as opposed to the current practice of one

year prior). The Secretary is to measure whether giving students early award notifications prior to

the start of their senior year of high school positively impacts their enrollment in postsecondary

education. States in partnership with their IHEs and secondary schools may apply to participate in

the demonstration.

Model Institutional Financial Aid Offer Form. The Secretary is required to convene a group to

develop a model format for financial aid offer forms, including specified information on college

prices, aid, loans, and family contributions.

Student Eligibility Provisions

The HEOA amends and expands student eligibility requirements for federal student aid.

Drug Conviction Ineligibility. The HEOA expands requirements under which students may be

able to regain eligibility for Title IV aid following certain drug convictions by mandating that

students also pass two random drug tests conducted by a rehabilitation program.35 Also, the

Secretary is required to study and report the effects of drug conviction ineligibility.

Students with Intellectual Disabilities. To provide students with intellectual disabilities (including

those with mental retardation) the opportunity to participate in comprehensive transition and

postsecondary education programs, the HEOA amendments open eligibility for these students to

receive Pell Grant, FSEOG, and FWS aid. Specifically, new student eligibility provisions exempt

intellectually disabled students from requirements relating to these students’ ability to benefit

from and enroll in regular recognized postsecondary degree or credential programs and modify

requirements relating to maintenance of satisfactory academic progress.

Ability to benefit provisions. The HEOA expands the criteria by which a student who has not

graduated from high school may demonstrate the ability to benefit from postsecondary education

For additional information, see CRS Report RS21824, Student Eligibility: Drug Convictions and Federal Financial

Aid, by (name redacted) and (name redacted).

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and, subsequently, receive federal student aid. A student who satisfactorily completes six credit

hours or the equivalent coursework that is applicable toward a degree or certificate offered by the

IHE at which the coursework was taken is considered to demonstrate the ability to benefit from

postsecondary education.

General Provisions Applicable to Military Personnel and Veterans

The HEOA adds a requirement for how IHEs treat servicemembers returning from a leave of

absence during which they served on active duty.

Readmission Requirements for Servicemembers. IHEs are required to readmit students who take a

leave of absence to serve on active duty in the armed forces. Students must be readmitted at the

same academic status they had attained prior to serving on active duty.

Disclosure, Information, and Reporting Requirements

In addition to related provisions under Title I, Part B (in general), as well as Title I, Part E and

Title IV Parts B and D (related to student loans), the HEOA adds disclosure and other reporting

requirements under the general provisions of Title IV, Part G, as described below.

Compliance Calendar. The Secretary must annually provide to IHEs a list of all reports,

disclosures, and other regulatory requirements under the HEA, with deadlines for compliance.

Information that IHEs must Make Available to Enrolled and Prospective Students. IHEs are

required, upon request, to disclose various information to current and prospective students. The

HEOA expands these requirements to include several new data requirements. Examples of the

types of information that must be disclosed including the following:

•

institutional policies and sanctions related to copyright infringement, including a

description of the institution’s policies with respect to unauthorized peer-to-peer

file sharing,

•

information on student body diversity,

•

the placement in employment and types of employment obtained by graduates of

the institutions’ degree or certificate programs,

•

the types of graduate and professional education in which graduates of the

institutions’ four-year degree programs enroll,

•

the institution’s fire safety report, and

•

the retention rate of certificate- or degree-seeking first-time, full-time

undergraduate students entering the university.

Disclosure of Reimbursements for Service on Advisory Boards. Under the HEOA amendments,

IHEs are required to annually report to the Secretary, information on the reimbursement of

expenses received by employees of the financial aid office of the institution for their service on an

advisory board, commission or group established by a private educational lender. The Secretary is

required to annually transmit a summary report on reimbursed expenses to the authorizing

committees.

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Data on Completion and Graduation Rates. Under the HEOA amendments, institutions must

disaggregate completion and graduation rate data submitted to ED based on student gender,

race/ethnicity, receipt of a Pell Grant, receipt of a federal loan but not a Pell Grant, and nonreceipt of a Pell Grant or specific federal loans. These requirements will not apply to two-year

degree-granting institutions until the 2011-2012 academic year. Prior to that time, the Secretary is

required to convene a group of representatives from the higher education community to consider

the mission and role of these institutions, and to recommend additional or alternative measures of

student success. The Secretary has until June 30, 2011 to modify the measures of student success

for two-year degree-granting institutions.

Campus Crime, Emergency Response, and Fire Safety Requirements.36 The HEOA expands the

list of crimes for which IHEs must indicate whether the crime committed was a “hate crime” to

include crimes such as simple assault and intimidation. It requires IHEs to establish policies

related to immediate emergency response and evacuation procedures, including the use of

electronic or cellular communication. This includes having procedures to “immediately notify the

campus community” about a significant emergency or dangerous situation occurring on campus

that involves an immediate threat to the health and safety of students or staff. IHEs are also

required to test their emergency response and evacuation procedures on an annual basis. In

addition, IHEs must publish an annual fire safety report, to be available to the public and

submitted to the Secretary, that contains information about fire safety practices and standards at

the institution and provides data on fires that occurred in on-campus housing facilities.

Transfer of Credit Policy Disclosures, Missing Person Procedures, and Drug Policy Notification.

The HEOA requires IHEs to publicly disclose their transfer of credit policies, including any

established criteria the IHE uses in determining whether to accept the transfer of credit, as well as

a list of any institutions with which the IHE has established an articulation agreement. Each IHE

is also required to develop missing person procedures for students living on-campus. Finally,

IHEs are required to provide students, upon enrollment, with a written notice detailing the

penalties under the HEA for drug violations and to provide students who have lost their Title IV

eligibility as a result of a drug violation with information on how to regain Title IV eligibility.

National Student Loan Data System

The HEOA requires the Secretary to take actions to maintain confidentiality in the National

Student Loan Data System (NSLDS); to restrict access to NSLDS, and to provide applicants of

federal student aid a disclosure of the uses of individual data contained in NSLDS, and their

privacy rights with respect to such data. In addition, guaranty agencies, lenders, and institutions

must inform borrowers of federal student loans that information on their loans will be provided to

NSLDS.

Articulation Agreements Program

The Secretary is required to carry out a program with public IHEs to develop, enhance, and

implement comprehensive articulation agreements between or among such institutions in a state

and (to the extent practicable) across state lines by 2010.

For additional information, see CRS Report RL33980, School and Campus Safety Programs and Requirements in the

Elementary and Secondary Education Act and Higher Education Act, by (name redacted) and (name redacted).

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Program Participation Agreement (PPA)

Under the HEA, IHEs have been required to enter into a Program Participation Agreement; and,

in so doing, agree to comply with the laws, regulations, and policies governing institutional

participation in Title IV financial aid programs.37 New and amended requirements made by the

HEOA to the Program Participation Agreement are described below.

Disclosures to Victims of Crimes. The HEOA adds requirements within the PPA related to the

disclosure of the outcome of an institutional disciplinary hearing to victims of certain crimes.

Addition of the “90/10 Rule” for Proprietary IHEs to the PPA. The HEOA moves the 90/10

rule, 38 which applies only to proprietary institutions, to the PPA from Title I. By making this

change, the 90/10 rule is no longer a condition of institutional eligibility to participate in the Title

IV programs. Thus, proprietary institutions that violate the 90/10 rule in a given year will not lose

their Title IV eligibility. They will, however, be placed on provisional eligibility status for two

years. Proprietary institutions that violate the 90/10 rule for two consecutive years will lose their

Title IV eligibility for at least two years, dependent upon further requirements to regain eligibility.

Revenue Sources for Compliance with the 90/10 Rule. The HEOA specifies sources of revenue

that may be counted toward the provision of the 90/10 rule that 10% of total revenues must be

from non-Title IV sources. While many of these sources were allowed under regulations prior to

the enactment of the HEOA, proprietary institutions may now count revenue sources toward the

10% requirement that were not permitted previously. For example, proprietary institutions may

now count revenue earned from non-Title IV eligible programs of study toward the 10%

requirement, provided the program is approved by the state, accredited, or provides an industryrecognized credential or certification. Under the new provision, a proprietary institution could

have its Title IV programs fully paid for by Title IV federal student aid but have this aid count as

only 90% of its total revenue if the other 10% of its total revenue is derived from non-Title IV

programs. Also, from July 1, 2008 to July 1, 2011, proprietary institutions may count toward the

10% requirement the proceeds of Unsubsidized Stafford Loans in excess of the loan limits that

existed the day before the enactment of the ECASLA. 39

Requirements for Teach-Outs. In the event that the Secretary initiates the limitation, suspension,

or termination of an IHE’s participation in any Title IV program or initiates an emergency action

against an IHE, the HEOA requires the IHE to prepare a teach-out plan for submission to the

institution’s accrediting agency. A teach-out plan is a written plan that provides for the equitable

treatment of students if an IHE ceases operations before all students have completed their

program of study.

Code of Conduct for Student Loans. The HEOA adds requirements to the PPA that IHEs develop,

publish, administer, and enforce codes of conduct with respect to federal student loans. Codes of

For additional information, see CRS Report RL33909, Institutional Eligibility for Participation in Title IV Student

Aid Programs Under the Higher Education Act: Background and Reauthorization Issues, by (name redacted).

The “90/10 Rule” requires for-profit IHEs to derive at least 10% of their revenues from non-Title IV sources. For

additional information, see CRS Report RL32182, Institutional Eligibility and the Higher Education Act: Legislative

History of the 90/10 Rule and Its Current Status, by (name redacted).

The ECASLA raised loan limits for Unsubsidized Stafford Loans by $2,000 for most types of undergraduate

borrowers. For additional information on changes to the HEA made by the ECASLA, see CRS Report RL34452, The

Ensuring Continued Access to Student Loans Act of 2008, by (name redacted).

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conduct must include a ban on revenue-sharing arrangements with lenders; a ban against

employees of the financial aid office receiving gifts from lenders, compensation through

consulting arrangements or contracts with lenders, and compensation for service on an advisory

board, commission, or group established by a lender; prohibitions against IHEs steering

borrowers to particular lenders, and against delaying or refusing to certify loans based on a

borrower’s selection of lender or guaranty agency; a ban against IHEs receiving funds from

lenders for private loans or opportunity pools in exchange for entering into a preferred lender

arrangement; and a ban against financial aid offices receiving staffing assistance from lenders.

Preferred Lender Arrangements. The HEOA adds requirements to the PPA that IHEs entering into

preferred lender arrangements must annually compile, maintain, and make available a list of

lenders of federal student loans and private student loans that it recommends, promotes, or

endorses. IHEs must also disclose: detailed information about the terms and conditions of loans

offered by preferred lenders, as specified under Title I, Part E; why the IHE entered into a

preferred lender arrangement with the lender; the terms and conditions of those loans that are

favorable to borrowers; that students need not borrow from preferred lenders; and the criteria

used by the IHE to select preferred lenders. Preferred lender lists for FFEL program loans must

contain at least 3 unaffiliated lenders; and preferred lender lists for private education loans must

contain at least 2 unaffiliated lenders.

Transfer of Allotments Between Campus-Based Programs

Previously, institutions were permitted to transfer up to 25% of their Perkins Loan FCC allotment

to either or both the FSEOG and the FWS programs; and up to 25% of their FWS allotment to the

FSEOG program. Institutions may now also transfer up to 25% of their FWS allotments to either

or both the FSEOG or the Perkins Loan program; and up to 25% of their FSEOG allotment to the

FWS program.

Advisory Committee on Student Financial Assistance

The HEOA amends the purposes of the Advisory Committee related to early intervention and

awareness programs and federal regulations and the appointment provisions for committee

membership. It requires the Advisory Committee, in consultation with expert review panels, to

review and monitor all proposed federal regulations in regard to their potential impact on IHEs, to

maintain a website with regulatory information (including the study of HEA regulations

conducted by the National Academy of Sciences as required under Title XI), and to conduct the

committee’s own review and analysis of federal regulations affecting IHEs. The act also requires

the Advisory Committee to conduct a Study of Innovative Pathways to Baccalaureate Degree

Attainment.

Part H: Program Integrity

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,40 and eligibility and certification by ED.

For additional information, see CRS Report RL32989, Accreditation and the Reauthorization of the Higher

Education Act, by (name redacted) and (name redacted).

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Accrediting Agency Provisions

The HEOA requires accrediting agencies to consistently apply and enforce standards that respect

the stated mission of the institution, including religious missions. It adds requirements related to

accrediting agency distance education oversight responsibilities, including ensuring students are

doing the distance education coursework for which they receive credit. Also modified are existing

due process requirements related to the accrediting process, including requiring accrediting

agencies to have written accreditation standards and to have a conflict of interest policy for

appeals panels. The HEOA also adds requirements related to the growth of programs, teach-out

plans, public disclosure of accrediting agency actions, and transfer of credit policies.

Student Achievement Provisions

The HEOA amendments require accrediting agencies to evaluate institutions’ success with respect

to student achievement in relation to the institution’s mission. But, the HEOA prohibits the

Secretary from establishing any criteria that specify the standards that accrediting agencies must

use to assess an IHE’s success with respect to student achievement. It also prohibits the Secretary

from issuing regulations related to the standards an accrediting agency must use to assess various

aspects of institutions, including, for example, student achievement, curricula, faculty, and

facilities.

ED Program Reviews

The HEOA amendments specify that during a program review, ED is required to provide an IHE

with an adequate opportunity to review and respond to any relevant materials prior to a final

program report being issued. The Department of Education must review and take into

consideration an IHE’s response in any final program review report or audit determination,

including issuing a written statement addressing the IHE’s response. The Department must

maintain and preserve the confidentiality of any program review report until a final program

review is issued, except that information must be shared with the IHE being reviewed and the

institution’s accrediting agency and state.

Part I: Pilot Parent PLUS Loan Auction Program

Part I, added to the HEA by the CCRAA, authorizes the Secretary to implement a pilot student

loan auction program for FFEL program parent PLUS loans beginning July 1, 2009. Under the

program, auctions will be held in each state and lenders will bid on the minimum amount of

subsidization they will accept to obtain rights to originate parent PLUS loans in that state.

Amendments to Pilot Parent PLUS Loan Auction Program

The program is amended: to require lenders, at the time of submitting bids to participate in the

program for a particular state, to make a commitment that if theirs is the winning bid, they will

enter into an agreement with the Secretary to originate parent PLUS Loans in that state; to specify

penalties for lenders with a winning bid that fail to enter into an agreement with the Secretary; to

specify that GAs are responsible for administering federal loan insurance on parent PLUS Loans

made under the program; and to require an evaluation of the program.

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Title V: Developing Institutions

Title V establishes programs that make available support for Hispanic Serving Institutions (HSIs),

similar to those described under the Title III heading, above.

Part A: Hispanic Serving Institutions

The HEOA amends the allowable uses of funds for HSI grants to include remedial and English

language instruction, financial literacy counseling, and articulation agreement facilitation.

Part B: Postbaccalaureate Opportunities for Hispanic Americans

The HEOA establishes a new Title V program, to be designated Title V, Part B, to be called

Promoting Postbaccalaureate Opportunities for Hispanic Americans (PPOHA). HSIs that offer

postbaccalaureate certificate or degree programs are eligible grantees, with funds to be used for a

variety of activities to support expansion of graduate programs, including construction and

student financial assistance. Under Title VIII, Part AA, $11.5 million per year is appropriated for

the program for FY2009 through FY2014, as shown in Appendix.

Part C: General Provisions

In addition to technical amendments, the HEOA increases the authorization of appropriations for

Title V; see Appendix.

Title VI: International Education Programs

Title VI authorizes a variety of grants to IHEs and related entities to enhance instruction in

foreign language and area studies. The international education program reflects the special

priority placed by the federal government on foreign language and area studies, especially with

respect to diplomacy, national security, and trade competitiveness. In addition to the Title VI

amendments below, note that the HEOA also establishes a new Deputy Assistant Secretary for

International Education through an amendment to the Department of Education Organization Act

(see Title IX, below).

Part A: International Education Programs

Authorized Part A programs include Language and Area Centers, International Studies and

Foreign Languages, and Research Centers Abroad. The HEOA amends these programs’ purposes

as well as application, evaluation, and other administrative requirements of these programs. The

HEOA also makes certain undergraduate students eligible for Language and Area Studies

Fellowships and redistributes how funds appropriated for Title VI, Part A are to be allocated to

each program.

Part B: Business and International Education Program

Authorized Part B programs include International Business Education Centers and Business and

International Education Projects. The HEOA amends the programs’ purposes and grantee

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assurances to “encourage the advancement and understanding of technology-related disciplines,

including manufacturing software systems and technology management” and requires grantees to

provide an assurance that “diverse perspectives will be made available to students.”

Part C: Institute for International Public Policy

Part C establishes the Institute for International Public Policy which provides a grant to a

consortium of certain minority-serving institutions to support the preparation of underrepresented

minority students for international and foreign service careers. The HEOA clarifies eligibility

criteria so as to include all institutions eligible for assistance under Title III, Parts A and B, and

Title V. The act also authorizes financial assistance under Part C consisting of summer stipends

and Ralph Bunche Scholarships.

Part D: General Provisions

Part D contains provisions that define terms used in Title VI. In addition to adding a new Title VI

program under Part D, the HEOA amendments give the Secretary authority to waive the Title VI

grant programs’ matching requirements under certain conditions and revise assessment and

reporting requirements.

Science and Technology Advanced Foreign Language Education Grant Program

The HEOA establishes a new program authorizing the Secretary to award competitive grants to

IHEs to develop programs that teach foreign languages and emphasize understanding of science

and technology; foster international scientific collaboration; and provide professional

development to K-12 teachers.

Title VII: Graduate and Postsecondary Improvement Programs

Programs authorized under Title VII, Part A are focused on supporting specific graduate and

professional degrees. Note that other aid programs targeted toward graduate education are

authorized elsewhere in the HEA, including Title VIII, Part G, Mink Fellowships, described

below. Title VII, Part B authorizes the Fund for the Improvement of Postsecondary Education

(FIPSE). Finally, Title VII, Parts D and E authorize other programs related to educating students

with disabilities, and outreach and grant assistance.

Part A: Graduate Education

Title VII, Part A authorizes programs to support graduate education.41 Amendments under the

HEOA include a requirement that representatives from IHEs receiving grants under Titles III or V

be represented on the Jacob K. Javits Fellows Program Fellowship Board; new requirements for

designating areas that qualify under for Graduate Assistance in Areas of National Need; an

expansion of allowable services to include secondary school students (to be called “Associates,”

as opposed to the undergraduate “Fellows”) under the Thurgood Marshall Legal Educational

For additional information, see CRS Report RS21436, Graduate Fellowship Programs Under Title VII of the Higher

Education Act (HEA): Background and Reauthorization, by (name redacted).

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Opportunity Program; and a sense of Congress statement encouraging Title VII, Part A

institutions to voluntarily establish an inter-institution monitoring organization to address the

under-representation by race, ethnicity, and gender in higher education faculty and administration.

In addition, a new subpart is established, which creates the two new programs described below.

Master’s Degree Programs at Historically Black Colleges and Universities

The HEOA establishes a new program to support Master’s Degree Programs at HBCUs (MDPHBCU). Grants are for a minimum of $500,000 and must be matched with non-Federal funds if

over $1,000,000. Unlike other Title VII, Part A programs that are open to all IHEs meeting

specified criteria, MDP-HBCU delineates the 18 specific institutions that are eligible for the

program. 42 Grants may be used for a wide variety of activities to support master’s degree

programs in STEM and health fields. Title VIII, Part AA specifies a mandatory appropriation for

the program of $9 million per year for FY2009 through FY2014 (enough for each eligible IHE to

receive the minimum grant).

Master’s Degree Programs at Predominantly Black Institutions

The HEOA establishes a new program to support Master’s Degree Programs at PBIs (MDP-PBI).

MDP-PBI grants have the same minimums, matching requirements, and purposes as MDP-HBCU

grants. The MDP-PBI program delineates the 5 specific institutions that are eligible for grants.43

Title VIII, Part AA appropriates to the program $2.5 million per year for FY2009 through

FY2014 (enough for each eligible IHE to receive the minimum grant).

Part B: Fund for the Improvement of Postsecondary Education (FIPSE)

Title VII, Part B authorizes FIPSE, whose purpose is to broadly encourage the reform, innovation,

and improvement of postsecondary education.44 The HEOA adds five purposes for FIPSE grants

and contracts and adds to areas of national need for the purpose of awarding grants for FIPSE

Special Projects. In addition, HEOA establishes a priority in FIPSE grant competitions to IHEs

using green building standards and creates two programs under FIPSE.45

New Uses for FIPSE and FIPSE Special Project Awards

The HEOA establishes new allowable uses for FIPSE grants, including reforms in remedial

education, partnerships between high schools and colleges to increase late-entering limited

MDP-HBCU eligible institutions are Albany State, Alcorn State, Claflin, Coppin State, Elizabeth City State,

Fayetteville State, Fisk, Fort Valley State, Grambling State, Kentucky State, Mississippi Valley State, Savannah State,

South Carolina State, Virginia State, West Virginia State, Wilberforce, and Winston-Salem State Universities and the

University of Arkansas, Pine Bluff.

MDP-PBI eligible institutions are Chicago State University, Columbia Union College, Long Island University Brooklyn, Robert Morris College, and York College - The City University of New York.

For additional information, see CRS Report RS21653, Fund for the Improvement of Postsecondary Education:

Background and Funding, by (name redacted).

Although not programmatically related to other FIPSE activities, the two new programs are added as subsections of

HEA, § 741 (which describes the allowable purposes of FIPSE grants) and therefore these programs share an

appropriation authorization with FIPSE.

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English proficient students to pursue postsecondary education, interdisciplinary programs on

poverty with service-learning components, demonstration programs for housing homeless and

foster youth during periods when college dorms are closed, and promoting cultural diversity in

the entertainment industry.

Center for Best Practices to Support Single Parent Students

The HEOA establishes a new program authorizing a competitive grant or contract to an IHE to

establish and maintain a center to study and develop best practices for IHEs to support single

parents who are themselves students.

Scholarship Program for Family Members of Veterans or Members of the

Military

The HEOA establishes a new program authorizing a competitive contract to a nonprofit

organization to provide postsecondary education scholarships to children and spouses of military

service members who are on active duty during a war, military operation, or national emergency,

or of veterans who served since September 11, 2001, and who were killed or disabled while

serving. Scholarships are to be need-based and up to a maximum of $5,000.

Part D: Programs to Provide Students with Disabilities with a Quality Higher

Education

The HEOA repeals Title VII, Part D,46 which provided for demonstration projects, and replaces it

with several programs related to postsecondary education for students with disabilities. Specific

statutory language prohibits Title VII, Part D programs from reducing or expanding any rights or

obligations established under the Rehabilitation Act of 1973, the Americans with Disabilities Act

of 1990, the Individuals with Disabilities Education Act, the Developmental Disabilities

Assistance and Bill of Rights Act of 2000, or state laws.

Demonstration Projects to Support Postsecondary Faculty, Staff, and

Administrators in Educating Students with Disabilities

The HEOA establishes a new competitive grant or contract program for model demonstrations,

technical assistance, and professional development relating to teaching methods, secondarypostsecondary transitions, research, distance learning, developing career pathways, professional

development, and accessibility.

Transition Programs for Students with Intellectual Disabilities into Higher

Education

The HEOA establishes a new competitive grant program for IHEs, or IHEs in partnership with

vocational rehabilitation agencies, to create model transition programs to postsecondary

education for students with intellectual disabilities. Grant activities include academic enrichment,

The HEAO also repeals Title VII, Part C: Urban Community Service; however, the act does not replace Part C.

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extracurricular participation, and campus housing integration. Federal funds must be matched by

non-federal funds at a 3 to 1 ratio.

Programs to Support Improved Access to Materials

The HEOA establishes two new programs to improve accessibility of course materials. It creates

for the Secretary an Advisory Commission on Accessible Instructional Materials in Postsecondary

Education for Students with Disabilities, to conduct a study and issue recommendations within a

year to improve accessibility of instructional materials for postsecondary education students with

print disabilities. The act also creates a competitive grant or contract program for Model

Demonstration Programs to Support Improved Access to Postsecondary Instructional Materials

for Students with Print Disabilities, available to eligible partnerships of IHEs and expert

organizations.

National Technical Assistance Center and Coordinating Center

The HEOA establishes two new programs to provide technical assistance and information to

students, their families, and Title VII, Part D grantees. The Secretary is authorized to award a

grant, contract, or cooperative agreement to an IHE, nonprofit organization, or partnership to

support a National Center for Information and Technical Support for Postsecondary Students with

Disabilities. The Center will build a web-based database of information on disability services in

higher education and will provide other support, assistance, and information to students and

families relating to IHEs’ disability support services. The Secretary is also authorized to award a

cooperative agreement to create a Coordinating Center for IHEs offering inclusive comprehensive

transition programs for students with intellectual disabilities. The Coordinating Center will offer

technical assistance, evaluation protocols, program development assistance, and other services;

and will convene a working group to make recommendations to NACIQI on accreditation

standards for such programs.

Part E: College Access Challenge Grant Program

Title VII, Part E was added to the HEA by the CCRAA. The CCRAA provided mandatory

funding for the program for FY2008 and FY2009. The HEOA amended the College Access

Challenge Grant program to also authorize discretionary appropriations for FY2009 through

FY2014. As discussed above (see Title I), the HEOA also established a new state maintenance of

effort (MOE) requirement at HEA, § 137 under which states would lose eligibility to participate

in the program for failure to meet the MOE. Authorizations of appropriations for the College

Access Challenge Grant program are shown in Appendix.

Title VIII: Additional Programs

Additional HEA Programs

The HEOA adds a new title to the HEA, “Title VIII—Additional Programs,” which includes 27

new Parts, each establishing one or more new programs. Each of these newly authorized

programs would be funded through discretionary appropriations. These new programs are each

briefly described below.

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Part A: Project GRAD

Part A authorizes the Secretary to enter into a contract with the nonprofit organization Project

GRAD USA to provide support for programs that assist in secondary-to-postsecondary education

transitions, implemented through a series of subcontractors that must match federal funds

received.

Part B: Mathematics and Science Scholars Program

Part B authorizes the Secretary to award competitive grants to states to provide support and

scholarships for students pursuing STEM or health fields. Freshmen students are eligible for the

“Mathematics and Science Scholars Program” and upperclass students are eligible for an

additional four years of the “STEM or Health-Related Scholars Program”—each of which

provides up to $5,000 per year.

Part C: Business Workforce Partnerships for Job Skill Training in High-Growth

Occupations or Industries

Part C authorizes the Secretary to award competitive grants to partnerships of IHEs, employers,

and labor organizations to provide job training in high-growth fields and to strengthen degree

programs to meet workforce needs.

Part D: Capacity for Nursing Students and Faculty

Part D authorizes the Secretary to award competitive grants to IHEs to expand associate,

baccalaureate, and graduate nursing programs. Grants may be used to purchase technology,

conduct assessments, and provide scholarship support for students wishing to become nursing

faculty.

Part E: American History for Freedom

Part E authorizes the Secretary to award competitive grants to IHEs to establish or strengthen

programs or centers related to traditional American history, free institutions, and Western

civilization. 47 Grants may be used to design and implement academic programs, materials,

research, fellowships, teacher preparation, school partnerships, and dissemination.

Part F: Teach for America

Part F authorizes the Secretary to award a directed grant to Teach for America, Inc. to expand its

program of recruiting, selecting, training, and supporting new teachers. Such teachers are to be

placed in high-need schools.

These terms are defined in statute. Traditional American history means key constitutional, political, intellectual,

economic, and diplomatic trends, issues, events, and individuals. Free institutions refers to democracy, constitutional

government, individual rights, market economics, religious rights, and freedom of thought and inquiry.

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Part G: Patsy T. Mink Fellowship Program

Part G authorizes the Secretary to award grants to IHEs to make fellowship awards to assist

minority and women students acquiring doctoral and other terminal degrees for entering the

professoriate. Not less than 30% of funds must be awarded to IHEs eligible for grants under Titles

III and V. Fellows must subsequently be employed at an IHE for one year for each year of the

fellowship; failure to do so results in fellowship awards having to be repaid through conversion to

a DL program Unsubsidized Stafford Loan.

Part H: Improving College Enrollment by Postsecondary Schools

Part H authorizes the Secretary to award a grant to a nonprofit organization to make

postsecondary education enrollment rate data available by secondary school attended, to carry out

an assessment of 50 urban school districts and 5 rural states as to what factors contribute to

improved postsecondary education enrollment rates, and to provide services to improve such rates

in 10 districts and states (with a declining federal share of such services).

Part I, Early Childhood Education Professional Development

Part I authorizes the Secretary to award competitive grants to states to establish a State Task Force

to develop comprehensive statewide plans for professional development and careers for early

childhood education providers, including scholarships to students for up to $17,500.

Part J: Improving Science, Technology, Engineering, and Mathematics Education

with a Focus on Alaska Native and Native Hawaiian Students

Part J authorizes the Secretary to award a grant to a partnership of IHEs (including those with

STEM programs and two-year IHEs) and private organizations to develop secondary-topostsecondary transition programs for students in STEM fields, provide support services, and

internships.

Part K: Pilot Programs to Increase College Persistence and Success

Part K authorizes the Secretary to award competitive grants under two programs. The Pilot

Program to Increase Persistence and Success in Community Colleges makes available grants to

two-year and less than two-year IHEs to provide scholarships (paid as a performance incentive,

incrementally up to $2,000) and counseling services. The Student Success Grant Pilot Program

makes available grants, which require a federal to non-federal match on a 3 to 1 ratio, to IHEs to

employ student success coaches for at-risk, first-year students, and for other support activities.

Part L: Student Safety and Campus Emergency Management

Part L authorizes the Secretary to award competitive grants, required to be matched with nonfederal funds, to IHEs and consortia of IHEs to develop emergency communications systems,

measures to improve campus safety, and mental health service coordination with local agencies. It

authorizes the Secretary to establish and promulgate regulations for an Education Disaster and

Emergency Relief Loan Program for IHEs impacted by major disasters to help fund recovery and

operations. It also requires the Secretary, in consultation with the Secretary of Homeland Security

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and the Attorney General to (1) undertake the following: disseminate model emergency response

policies; (2) develop preparation, response, and recovery procedures for IHEs involved in

disasters; and (3) provide guidance for IHEs relating to student mental health issues with a

potential to cause harm.

Part M: Low Tuition

Part M authorizes the Secretary to award formula grants to IHEs that meet certain criteria under

two programs: Rewards for Low Tuition and Rewards for Guaranteed Tuition. For Low Tuition,

IHEs must either (1) have an annual tuition percentage increase in the lowest fifth of similar

institutions, (2) be public IHEs that have tuition in the lowest quartile of similar institutions, or

(3) be public IHEs that have a tuition increase of less than $600. Grant funds are used to give

additional grants to Pell-eligible students.

For Guaranteed Tuition, the Secretary is to give IHEs a “bonus,” again to be used for grants to

Pell-eligible students, if the institution (1) is a public IHE and tuition is in the lowest quartile of

similar institutions, or (2) the institution guarantees to students that tuition will not increase by (a)

more than $600 per year for public IHEs, or (b) by more than the previous three-year percentage

change for private IHEs. (The guarantee must sustain for 4 succeeding years for bachelor’s degree

programs or for 1.5 succeeding years for associate’s degree programs.)

Part N: Cooperative Education

Part N authorizes the Secretary to award competitive grants to IHEs or consortia of IHEs to

develop work experiences integrated with the academic program. Grants may support new

programs up to $500,000 or existing programs up to $75,000, and require matching funds on an

increasing basis over the course of the grant. The Secretary is also authorized to support

cooperative education demonstration projects, training centers, and research.

Part O: College Partnership Grants

Part O authorizes the Secretary to award competitive grants to consortia of IHEs or state higher

education agencies for the purpose of developing articulation agreements, common course

numbering, and common general education curricula.

Part P: Jobs to Careers

Part P authorizes the Secretary to award competitive grants to IHEs to improve developmental

education and workforce bridge programs.

Part Q: Rural Development Grants for Rural-Serving Colleges and Universities

Part Q authorizes the Secretary to award competitive grants to rural-serving IHEs or consortia of

IHEs in partnership with education service agencies or nonprofit organizations to improve

postsecondary education enrollment rates for rural secondary school students and nontraditional

students, strengthen academic offerings in high-need occupations, and provide career training in

fields relevant to the regional economy. Grants are for up to $200,000.

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Part R: Campus-Based Digital Theft Prevention

Part R authorizes the Secretary to award competitive grants or contracts to IHEs, consortia of

IHEs, or other organizations to develop programs to reduce the illegal downloading and

distribution of intellectual property.

Part S: Training for Realtime Writers

Part S authorizes the Secretary to award competitive grants to postsecondary court reporting

programs to promote training and placement of realtime writers. Grants are for up to $1,500,000

and may be used for need-based scholarships with a service requirement.

Part T: Centers of Excellence for Veteran Student Success

Part T authorizes the Secretary to award competitive grants to IHEs to develop model programs to

support the academic, financial, physical, and social needs of students who are veterans of the

armed forces.

Part U: University Sustainability Programs

Part U authorizes the Secretary, in consultation with the Administrator of the Environmental

Protection Agency, to award competitive grants to IHEs or partnerships to develop programs and

practices in energy management, greenhouse gas emissions reduction, green building, waste

management, toxics management, and other aspects of sustainability. Grantees must match grants

with nonfederal funds on a 4 to 1 ratio. Grants may be between $250,000 and $2,000,000.

Part V: Modeling and Simulation Programs

Part V authorizes the Secretary to award competitive grants to IHEs under two programs to (1)

establish and (2) enhance modeling and simulation degree programs. It also establishes within ED

a modeling and simulation task force to define, promote, and support the field.

Part W: Path to Success

Part W authorizes the Secretary to award competitive grants to community colleges in partnership

with juvenile detention centers to provide counseling, training, and assistance reentering the

community and pursuing career or technical training or an associate’s degree. Students served are

youth aged 16-25 who served in or were released from a detention center, with a priority to serve

youth with gang-related convictions.

Part X: School of Veterinary Medicine Competitive Grant Program

Part X authorizes the Secretary of Health and Human Services to award competitive grants to

schools of veterinary medicine or other schools offering graduate training or residency for

veterinarians to increase the number of veterinarians with specializations in public health practice

areas.

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Part Y: Early Federal Pell Grant Commitment Demonstration Program

Part Y authorizes the Secretary to award competitive grants to four state agencies to pay

administrative costs associated with participating in a demonstration program under which the

Secretary makes Pell Grant commitments to two cohorts of 10,000 eighth grade students, each of

whom are eligible for free or reduced price lunch. State grantees and local education partners are

to conduct a targeted information and outreach campaign.

Part Z: Henry Kuualoha Giugni Kupuna Memorial Archives

Part Z authorizes the Secretary to award a grant to the University of Hawaii Academy for

Creative Media to establish the Archives, collect Native Hawaiian historical data, support related

programs, create materials, provide outreach and other services, and to fund scholarships.

Part AA: Masters and Postbaccalaureate Programs

Part AA directs the appropriation of mandatory funding for FY2009 through FY2014. As shown

in Appendix, $9 million per year is appropriated for Masters Degree Programs at Historically

Black Colleges and Universities (Title VII, Part A), $2.5 million per year for Masters Degree

Programs at Predominantly Black Institutions (Title VII, Part A), and $11.5 million per year for

Promoting Postbaccalaureate Opportunities for Hispanic Americans (Title V, Part B).

Additional HEOA Programs

Title VIII also establishes two programs as a part of the HEOA. As these provisions do not amend

the HEA, these programs will not be codified within the HEA.

National Center for Research in Advanced Information and Digital Technologies

Part AA establishes a nonprofit research corporation to harness the capacity of technology to

improve all levels of learning and education. The Center is to have a board whose members are to

be appointed by the Secretary with the advice of Congressional leadership. Funds are authorized

to be appropriated for a directed grant to the center.

Pilot Grant Program for Course Material Rental

Part AA also authorizes the Secretary to establish a competitive grant program to award 10 grants

to IHEs to pilot bookstore programs of renting course materials and books to students.

Other Provisions of the HEOA

Three additional titles of the HEOA do not amend the HEA. Title IX amends and reauthorizes

appropriations to several other higher education-related laws. Title X amends other laws in

relation to private student loans. Finally, Title XI mandates studies and reports to be conducted by

various entities and submitted to Congress.

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Title IX: Amendments to Other Laws

The HEOA amends several laws related to higher education, but separate from the HEA. The

HEOA also reauthorizes laws related to education of the deaf, Indian education, and programs

established under previous HEA amendments.

Part A: Education of the Deaf Act of 1986

The HEOA names the center for elementary and secondary education programs at Gallaudet

University the Laurent Clerc National Deaf Education Center and establishes education and

assessment requirements for the center. It establishes a new Cultural Experiences Grants program,

authorizing the Secretary to award competitive grants or contracts to provide students with

cultural, educational, and social experiences. The act also amends international student provisions

for the National Technical Institute for the Deaf and expands previous provisions requiring the

Secretary to conduct a study on education of the deaf to now require the establishment of a

commission on the education of the deaf. It also includes other technical amendments to the

Education of the Deaf Act, and extends its authorization through FY2014.

Part B: United States Institute of Peace Act

The HEOA makes technical amendments and extends authorization through FY2014.

Part C: Higher Education Act Amendments of 1992 and of 1998; Department of

Education Organization Act

The HEOA repeals from previous higher education amendments several programs and provisions,

including prior studies, Community Scholarship Mobilization; Improving United States

Understanding of Science, Engineering, and Technology in East Asia; Web-Based Education

Commission; and a Sense of Congress statement regarding good character. It also makes

significant amendments to the Grants to States for Workplace and Community Transition Training

for Incarcerated Individuals program and the Underground Railroad Educational and Cultural

Program, and extends their authorizations through FY2014. The HEOA extends the authorization

for Olympic Scholarships through FY2014.

International and Foreign Language Education

The HEOA amends the Department of Education Organization Act to establish within the Office

of Postsecondary Education the position of Deputy Assistant Secretary for International and

Foreign Language Education.

Part D: Tribally Controlled Colleges or Universities Assistance Act of 1978;

Navajo Community College Act

The HEOA reauthorizes the Tribally Controlled Colleges or Universities Assistance Act of 1978

through FY2014, and makes amendments to definitions, continuing education, accreditation, and

other provisions. For grants to TCCUs, the act increases the per student allotment from $6,000 to

$8,000, to be adjusted in the future for inflation. It also adds a new Title V, Tribally Controlled

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Postsecondary Career and Technical Institutions,48 which provide grants to the United Tribes

Technical College and the Navajo Technical College. The HEOA also makes technical

amendments to the Navajo Community College Act and extends its authorization through

FY2014.

Part E: Omnibus Crime Control and Safe Streets Act of 1968

Loan Repayment for Prosecutors and Public Defenders

The Omnibus Crime Control and Safe Streets Act of 1968 is amended to establish a loan

repayment program, under which the Attorney General may assume the obligation to repay up to

$10,000 per year, and a maximum of $60,000, on federal student loans made under FFEL, DL

and Perkins Loan programs (other than PLUS Loans borrowed on behalf of a dependent student)

for borrowers who enter into agreements to serve as prosecutors or public defenders for at least

three years. The program is authorized to be funded at $25 million for FY2009; and such sums as

may be necessary for FY2010-FY2014.

Part F: Institutional Loan Repayment Assistance Programs

Institutional Loan Forgiveness for Federal and District of Columbia

Government Employees

This provision of the HEOA specifies that, notwithstanding any other provision of law, IHEs are

authorized to provide financial assistance to current and former students who are officers or

employees of the United States government, or of the District of Columbia, for the purpose of

repaying a student loan or providing forbearance. 49 Such assistance must be provided in

accordance with a published written policy of the institution addressing loan repayment or

forbearance for current and former students who perform public service. Note that this provision

does not amend any law.

Part G: Stevenson-Wydler Technology Innovation Act of 1980

The HEOA establishes the Minority Serving Institution Digital and Wireless Technology

Opportunity Program, authorizing the Secretary to award grants or contracts to IHEs to acquire

and build capacity for using digital and wireless networking technologies. Title III and Title V

MSIs and minority institutions (IHEs enrolling more than 50% of any minority group) are eligible

to apply for these grants.

This program is similar to the identically-titled Tribally Controlled Postsecondary Career and Technical Institutions

program authorized under § 117 of the Carl D. Perkins Career and Technical Education Improvement Act of 2006 (P.L.

109-270). The HEOA makes amendments to this section of the Perkins Act, but does not repeal the program.

For additional information, see CRS Report RL31102, Student Loan Repayment for Federal Employees, by (name re

dacted) and (name redacted).

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The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

Title X: Private Student Loan Transparency and Improvement Act

of 2008

Title X amends the Truth in Lending Act (TILA), the Community Reinvestment Act of 1977

(CRA), and Title I, Part E of the HEA (discussed above), with respect to education loans. It also

establishes new requirements for the Financial Literacy and Education Commission.

Amendments to the Truth in Lending Act

The HEOA amends the TILA with respect to private education loans. These amendments are

described below.

Private Educa

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