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.

Overview

• Forming Consciences for Faithful Citizenship:A Call to Political Responsibility from the Catholic Bishops of the United States
• Voter Registration Information
• Student Aid Advocacy Groups
• History of Federal Student Aid Programs

In This Section:

• Summary of Student Financial Aid Cuts in the Consolidated Appropriations Act of 2012 (December 22, 2011)
• Student Aid Funding and the Federal Budget Process
• The "CUTS" Act of 2011
• The Health Care and Education Reconciliation Act of 2010 - The Health Care and Education Reconciliation Act of 2010 (H.R. 4872) was passed on March 25, 2010 by a vote of 56-43 in the Senate and a vote of 220-207 in the House. The bill now goes to the president to be signed into law. The education provisions in the bill are similar to many provisions contained in the Student Aid and Fiscal Responsibility Act (SAFRA, H.R. 3221), which the House passed last fall
  • "HCERA's Impact on Federal Financial Aid Programs" 
  • The Student Aid and Fiscal Responsibility Act of 2009 ("SAFRA" -H.R. 3221) 
  • "SAFRA" Page on Facebook

• The Fairness for Struggling Students Act of 2010
• The Christopher Bryski Student Loan Protection Act (H.R.5458 )
• The Wall Street Reform and Consumer Protection Act of 2009 ( H.R. 4172 - 12/11/2009)
  • Press Release from the House Financial Services Committee
•  The Roosevelt Scholars Act of 2009
•  Higher Education Opportunity Act
  • The Higher Education Opportunity Act Technical Corrections Bill (H.R. 1777)
  • Negotiated Rulemaking for Higher Education 2009-10 - Team I--Program Integrity Issues, Analysis and Additional Data<!-- Level 1 --> 

The Cut Unsustainable and Top-heavy Spending (CUTS) Ac tof 2011

Rep. Kevin Brady (R-TX) introduced on January 7m 2011 The Cut Unsustainable and Top-heavy Spending (CUTS) Act to reduce federal spending by $153 billion over the next five years. The bill includes several provisions that would affect student aid, including:

• Elimination of the administrative cost allowance (ACA) paid to schools for student aid administration to save $200 million over the next five years
• Elimination of the Leveraging Educational Assistance Partnership (LEAP) Program to save $1 million over five years
• Elimination of the Robert C. Byrd Honors Scholarship Program to save $42 million over the next five years
• Elimination of the Department of Education’s Legal Assistance Loan Repayment Program to save $5 million over the next five years.  

Many of the provisions in the bill were identified by the recent bi-partisan deficit reduction commission report that failed to gain the votes needed for passage. This includes reducing the federal workforce by 10 percent, cutting White House and Congressional budgets, freezing pay for federal workers and Congress, selling excess federal property, and reducing Department of Defense spending on “wasteful” procurement. The bill also collects unpaid federal taxes from federal workers, denies unemployment benefits to millionaires and eliminates programs that have been targeted by both the Bush and Obama administrations.

It s unclear when or if this legislation will be taken up in the House

(Reference: NASFAA's Today's News , January 13, 2011)

"The Higher Education Opportunity Act of 2008"

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

TheHigher 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.

Federal Web sites

• U.S. House of Representatives Committee on Education and Labor
• U.S. House of Representatives Committee  on Financial Services - this Committee is handling legislation on
  • Credit Card Reform
  • Increased oversight of private alternative loans

Updated December 23, 2011