Relevant Federal Legislation and Proposals

We want to encourage all of our families to be active participants in the democratic process. This is part of the charge that we have to faithful citizenship. This page has information on proposals that affect federal student aid programs.

 
 
In This Section:

 

The Edward M. Kennedy Serve America Act (this bill replaced the "Generations Invigorating Volunteerism and Education "("GIVE") Act

On March 31, 2009, the U.S. House of Representatives gave final approval  a bill that would expand the federal national-service programs by the largest amount in 50 years, sending it to President Obama for a signature. President Obama signed this bill into law.

The bill, recently renamed the Edward M. Kennedy Serve America Act (HR 1388) in honor of the longtime Massachusetts senator, would more than triple the size of the AmeriCorps program, to 250,000 slots, up from 75,000. The Senate passed the measure last week, and the House, which had earlier approved the "GIVE " Act , adopted the Senate version today.

The legislation would also increase, to $5,350, the education stipend that volunteers receive for each year of service, bringing that award in line with the maximum Pell Grant. Older volunteers could transfer up to $1,000 of their stipend to a child, foster child, or grandchild.

 

The American Recovery and Reinvestment Act of 2009 (H.R. 1)

House and Senate conferees have reached a deal on a $790 billion economic stimulus bill. Both chambers have approved the bill. President Obama signed it into law on February 17, 2009.

The final bill will provide $507 billion in spending programs and $282 billion in tax breaks. At least $80 billion is allocated for K-12 and higher education. The final bill includes roughly $30 billion for students and families for the next two academic years.

Pell Grants
Slightly more than $17 billion is provided to increase the maximum award to $5,350 in 2009-10 and $5,550 in 2010-11 and eliminate the Pell Grant shortfall.

Federal Work Study
$200 million is provided for the FWS program, less than the $490 million provided in the House's version of the bill.

Tax Credit
The final bill adopts the House provision to provide approximately $13.5 billion for a $2,500 tax credit. Up to 40 percent ($1,000) of the newly revised tax credit is refundable which generally benefits lower-income taxpayers who, when filing their tax forms, do not have a tax liability. Approximately four million additional students will receive the tax credit now that it is partially refundable.

Unsubsidized Stafford Loan Limits
The $2,000 loan limit increase provided by the House bill was NOT included in the conference report.

Perkins Loans
The conference report does NOT include additional funding for Perkins. The Senate's version of the bill included $61 million for Perkins, but this was not adopted.

College Savings
The final bill does NOT include a provision that was in the Senate version to allow computers to be considered a qualified expenses for 529 college savings plans

Related Articles and Links:

  • Resource page compiled by the National Association of Student Financial Aid Administrators
  • Recovery. gov - This  website  lets you, the taxpayer, figure out where the money from the American Recovery and Reinvestment Act is going.
  • Department of Education's Web Center - The Department has launched an American Recovery and Reinvestment Act (ARRA) web center where it will post information about the new law as it becomes available
  • The Final Stimulus Bill -from the February 13, 2009 issue of Inside Higher Ed

"The Higher Education Opportunity Act of 2008"

On August 14, 2008, President Bush signed H.R. 4137, the Higher Education Opportunity Act (HEOA), which reauthorizes and makes changes to virtually all of the federal student aid programs.

The Higher Education Opportunity Act ("HEOA') contains a number of provisions that mandate increased disclosure of college costs so that families can make informed decisions.

 The House passed legislation (H.R. 1777) on March 30, 2009  by voice vote to make technical corrections to the Higher Education Act (HEA), suspend the Parent PLUS Loan auction, and assist borrowers who are unable to rehabilitate their loans due to current market conditions.

The 54-page bill that makes minor changes to the HEA -- like correcting typos -- includes a one-year suspension of the pilot auction program to sell the rights to make federal Parent PLUS Loans in a state for a two-year period. The program was scheduled to begin on July 1, 2009 and the Department planned to hold the auction on April 15. The bill postpones the auction program until July 1, 2010.

Another provision in the bill is designed to help borrowers who are eligible to rehabilitate their loans, but remain in default because disruptions in the credit market prevent many lenders from participating in the Loan Rehabilitation Program. The provision allows guaranty agencies to assign loans to the Secretary of Education if they have secured nine payments within 20 days of the due date for 10 consecutive months and the agency is unable to sell the rehabilitated loan due to current market conditions.

The bill also delays implementation of the simplified Free Application for Federal Student Aid (FAFSA) for one year - to 2010-11. The shortened form, known as the EZ FAFSA, would make it easier for some students to apply for federal aid.

President Obama signed this legislation into law on July 1, 2009.

The Ensuring Continued Access to Student Loans Act of 2008 ("ECASLA")

This legislation (H.R. 5716) was originally approved by the House of Representatives on April 17, 2008. The measure then moved to the U.S. Senate for approval. President Bush signed it into law on May 7, 2008. You may also review the Resource Page from the Department of Education.

The College Cost Reduction and Access Act ("CCRA")

 

President Bush signed the College Cost Reduction and Access Act ("CCRA") into law on September 27, 2007.

 

Additional Resources:

Federal Web sites

Updated November 17, 2009