The Higher Education Act (HEA) has finally been reauthorized, several years behind schedule. The original legislation, passed in 1965, encompasses nearly all of the major higher education laws of the country. The various titles of the legislation cover student financial aid, institutional grants, teacher training programs, accreditation, and international education and study abroad programs, among other items.
The reauthorization, which in this most recent incarnation has been underway for over a year, finally passed out of conference just before the congressional August recess and was signed into law by the president on August 14. The last comprehensive reauthorization was in 1998, and during the past decade maintenance of the programs covered under the Act has relied on a series of temporary provisions.
The bill addresses the 2007 tug-of-war over accreditation rules between the Department of Education and Congress, and affirms the need for institutional diversity of mission. Because of the sharp battles that have recently been waged over accreditation, the finalized legislation divides appointments to the National Advisory Committee on Institutional Quality and Integrity (NACIQI) among the House, the Senate, and the Dept. of Education. Currently, all appointments are made by the Secretary of Education, a process that has been frequently criticized for its politicization.
A number of new reporting requirements, particularly pertaining to college costs and tuition increases, will be required by the bill and a number of new ranking lists and indices comparing different institutions will be created for the Department of Education’s website. The Department is also required to make more efforts toward educating students and families about financial aid options, in part by making information about government programs easier to find online. A proposed database with students’ personal and educational information that had been a great concern for civil liberties advocates was ultimately rejected, with language included in the bill that specifically prohibits the creation of such a database.
The HEA reauthorization reiterates a number of provisions aimed at the student loan industry that were passed in separate bills early in 2008. The lending industry has undergone a number of shifts of late, and has been the focus of intensified scrutiny after a number of ethical lapses. Among these were widespread problems with lenders offering incentives and kickbacks to schools and aid counselors who put them on institutional preferred lists for students, and revelations that Secretary Spellings allowed Nelnet to keep $278 million worth of government subsidies for which it did not qualify.
Title VI, which covers international education, also sees some changes in the reauthorization. As “area studies” programs in particular have been popular targets for partisan politicization amid accusations of ideological bias, an oversight board was originally proposed. That board was not included in the final version of the bill, but institutions applying for grants under Title VI will need to include information about how proposed programs will incorporate diverse viewpoints.
The final sticking point of the bill during conference negotiations was a controversial proposal that would financially penalize states who let higher education funding drop to below the average of the preceding five years. This provision did ultimately get included in the final bill, despite vociferous protest from many state officials.