Higher Education Act (HEA) Reauthorization Update
A bill to temporarily extend the programs under the Higher Education Act of 1965 (HEA) was signed into law (Public Law 110-256/S. 3180) by the President on June 30, providing for a one-month extension until July 31, 2008.
At the NASFAA Annual Conference earlier this week, Representative Ric Keller (R-FL), ranking member of the House Higher Education Subcommittee, stated that completion of the HEA reauthorization conference report is expected in early August. Although the Senate reauthorization bill, the Higher Education Amendments of 2007 (S. 1642), passed in July 2007 and the House bill, the College Opportunity and Affordability Act (H.R. 4137), passed earlier this year, negotiating differences in the bills has proven difficult. Rep. Keller noted that one of the last remaining issues of contention in the legislation is the “90/10 rule,” which requires that for-profit schools receive 10 percent of their revenue from sources other than federal financial aid.
Notice of Proposed Rulemaking: College Cost Reduction and Access Act
The notice of proposed rulemaking (NPRM) for changes to student loans enacted by the College Cost Reduction and Access Act (CCRAA) was published in the July 1 Federal Register. This NPRM provides for a 45-day comment period, which means the deadline for sending comments to the Department of Education is August 15, 2008. Negotiators did reach consensus on the proposed regulations package.
Topics addressed in the CCRAA student loan issues NPRM include:
- Economic Hardship Deferment;
- Military Service Deferment and Post-Active Duty Student Deferment;
- Income-Based Repayment (IBR) Plan;
- Public Service Loan Forgiveness; and
- Eligible Not-For-Profit Holder Definition.
OGSLP will continue to keep you informed about HEA and other legislative activity. We encourage you to visit our Legislation Page often to view important updates and access more detailed information. If you have questions, please contact our Policy, Compliance, and Training department at (405) 234-4432 or email@example.com.