Transcript Slide 1

7th Annual National Conference of ABHES
Federal
Potpourri
Aria Resort & Casino
February 12, 2010
7th Annual National Conference of ABHES
Federal Potpourri: The New Student Loan
Paradigm, HEOA Regulatory Compliance, the
Latest Round of Federal Negotiated Rulemaking,
and Health Care Legislation Too
Moderator: Larkin Hicks
Arizona College
2
HEOA Regulatory Compliance
and Neg Reg on
Program Integrity Issues
Sharon H. Bob, Ph.D
3
College Costs
• Objective is transparency and a bit of shame
and glory
• Measurement starting point is the average
tuition and fees for first-time, full-time
undergraduate students enrolled at the
institution
4
College Costs
• Starting in July 2011, ED will make
information available to the public
– Information presented by category of school
(4yr public, 4yr private NP, 4yr private FP, 2yr
public, 2yr private NP, 2yr private FP, less than
2yr public, etc.)
– List of 5% of institutions per category with
highest tuition and fees for most recent
academic year
5
College Costs
• List of 5% of institutions per category with
highest “net price” for most recent academic
year (net price deducts average need-based
and merit-based grant aid from tuition and
fees via formula)
• List of 5% of institutions per category with
largest increase in tuition and fees over the
three most recent academic years for which
data are available (1st year used as base
year) (exempt if increase is $599 or less)
6
College Costs
• List of 5% of institutions per category with
largest increase in net price over the three most
recent academic years for which data are
available (1st year used as base year) (exempt if
increase is $599 or less)
• List of 10% of institutions per category with
lowest tuition and fees for most recent academic
year
• List of 10% of institutions per category with
lowest “net price” for most recent academic year
7
College Costs
• Schools in top 5% for largest increase over
three year period must submit a report to ED
addressing several issues including major
areas of increase in school’s budget and an
explanation of those increases, and a
description of the schools’ efforts to reduce
costs
8
Net Price Calculator
• On October 29, 2009, U.S. Dept of Education made
available a template for the Net Price Calculator that
institutions may use or see:
http://www.ed.gov/policy/highered/leg/hea08/index.html
• Institutions have 2 years from the release of the template
to post their calculator
• An institution may use either the net price calculator
developed by Department or it may develop its own
– Institutionally developed calculators must include “at
a minimum the same data elements” found in the 9
Department’s template
Net Price Calculator
“to help current and prospective students,
families, and other consumers estimate the
individual net price of an institution of higher
education for a student. The calculator shall be
developed in a manner that enables current and
prospective students, families, and consumers
to determine an estimate of a current or
prospective student’s individual net price at a
particular institution.”
P.L. 110-315, sec. 132 (h) (1).
10
Definition of Net Price
Institutions’
price of
attendance
for FTFT
students
=
Total need- and merit-based
federal, state, and institutional
grant aid awarded to FTFT
students
Number of FTFT students
receiving such aid
Price of attendance =
average annual cost of tuition
and fees, room and board,
books, supplies, and
transportation
11
Textbooks
• Intent is to decrease costs to students and
increase transparency
• Secretary may not regulate in this area.
• Effective July 1, 2010.
12
Textbooks
• Publisher must disclose:
–
–
–
–
–
Cost of text at college bookstore
Cost of text to public
Copyright dates of 3 prior editions
Description of content revisions
Whether available in other formats
(paperback, unbound)
– Provision of ISBN (International
Standard Book Number)
13
Textbooks
• Institution must provide to its college bookstore:
– The institution’s course schedule; and
– For each course offered, the information must
include recommended textbooks and
supplemental material.
• Institutions are encouraged to provide
information on:
–
–
–
–
Renting textbooks;
Purchasing used textbooks;
Textbook buy-back programs; and
Alternative content delivery programs.
14
Institutional and Financial Assistance Information
for Students (Section 485(a) of the HEA)
• Previously, disclosure requirements ended at
“O,” now extend to “V.”
• Includes new disclosures and requirements:
– Must disclose any plans the institution has
for improving the academic programs;
– Must disclose the terms and conditions for
federal loan programs;
15
Institutional and Financial
Assistance Information for Students
– Requires institutions to develop plans to
detect and prevent unauthorized distribution
of copyrighted material on information
technology systems, including offering
alternatives to illegal-downloading or peerto-peer distribution of intellectual property;
– Must disclose placement in employment and
types of employment obtained by graduates;
16
Institutional and Financial
Assistance Information for Students
– Must report on fire safety if have on-campus
housing facilities;
– Must disclose the retention rate of
certificate- or degree-granting, full-time
undergraduate students entering the
institution;
– Must disclose policies on vaccinations;
17
Institutional and Financial
Assistance Information for Students
– Requires institutions to disaggregate data on
completion/graduation rates based on student
gender, race/ethnicity, and receipt of Pell
Grants; receipt of specific federal loans but
non-receipt of Pell Grants; and non-receipt of
Pell Grants or specific federal loans;
• Will not apply to 2-year degree-granting
institutions until 2011-2012.
– Expands Entrance/Exit Counseling disclosures;
– Adds four crimes to the list of hate crime
statistics to be reported in the Campus Security18
Report;
Institutional and Financial
Assistance Information for Students
– Requires institutions to immediately notify
the campus community in the event of a
significant emergency and publish
procedures to evacuate;
– Requires institutions to disclose transfer
credit policy, including any criteria used to
evaluate transfer of credit earned at another
institution;
19
Institutional and Financial
Assistance Information for Students
– Requires institutions to implement
procedures for managing reports of missing
persons who reside in on-campus facilities
and have been missing for more than 24
hours;
– Requires institutions to provide each
student, upon enrollment, with a “separate,
clear, and conspicuous written notice” of
the penalties associated with drug-related
offenses; and
20
Institutional and Financial
Assistance Information for Students
• After being notified by the Secretary that a
student has lost eligibility for financial aid
due to a drug-related offense, institutions
must notify the student in a “reasonable and
timely manner” in a “separate, clear, and
conspicuous written notice” of the loss of aid
eligibility and ways to regain eligibility.
21
ED Holds Negotiated Rulemaking
Sessions on 14 Program Integrity Issues
ED says Current Regulations
Cause Fraud and Abuse
In December 2009, ED introduced 14 issue papers.
22
ED Holds Negotiated Rulemaking
Sessions on 14 Program Integrity Issues
Validity of a High School Diploma
Ability-to-Benefit
Misrepresentation of Information
Incentive Compensation
ED Holds Negotiated Rulemaking
Sessions on 14 Program Integrity Issues
State Authorization
Employment in a Recognized Occupation
Definition of a Credit Hour
Agreements Between Institutions
ED Holds Negotiated Rulemaking
Sessions on 14 Program Integrity Issues
Verification of Information
Satisfactory Academic Progress
Retaking Coursework
Return of Title IV Funds: Term-Based Programs
25
ED Holds Negotiated Rulemaking
Sessions on 14 Program Integrity Issues
Return of Title IV Funds: Taking Attendance
Disbursements of Title IV Funds
26
Validity of a High School Diploma
• Currently, a student can self-certify on the
FAFSA that he/she has received a high
school diploma or GED;
• If the student does not have a high school
diploma or GED, the student must pass an
ATB test to qualify for financial aid;
• The student is only required to provide
documentation if required by institution for
admission;
27
Validity of a High School Diploma
• Confirming authenticity of high school graduation
has become more difficult due to proliferation of high
school diploma mills; and
• Only some states have a means to recognize all of
the legitimate high schools operating in state,
particularly private high schools.
• ED’s proposal:
– Beginning 2011-2012 award year, students
completing FAFSA will be asked to provide
name of secondary school or entity that
awarded high school diploma;
28
Validity of a High School Diploma
• If secondary school does not match the
list of secondary schools maintained by
ED or if the student does not name the
secondary school, the student’s FAFSA
may be selected for verification for further
review by institution to determine if the
student has a valid high school diploma.
29
Return of Title IV:
Taking Attendance
• Currently, for the Return of Title IV, the date
of withdrawal is based on the attendance
records if the school is required to take
attendance by an outside entity.
• ED’s Proposal:
– A school is required to take attendance by an
outside entity;
– The institution has a requirement to take
attendance;
– The institution or outside entity has a
requirement that can only be met by taking 30
attendance;
Return of Title IV:
Taking Attendance
– If attendance is required for only some
students, the institution must use
attendance to determine the withdrawal
date for those students; and
– If attendance is required for a limited
period, the institution must use attendance
to determine the withdrawal date for that
limited period.
31
Definition of Credit Hour
• Currently, the Department’s rules do not define a
“credit hour” except for conversion of clock hours to
credit hours for non-degree programs.
• Accrediting agencies and states, to varying degrees,
establish standards and criteria for degree levels.
• The HEA and implementing regulations require
accrediting agencies to have standards to evaluate
an institution’s or program’s “measures of program
length and the objectives of the degrees or
credentials offered.”
32
Definition of Credit Hour
• The Department has relied on accrediting
agencies to make a judgment about program
length and the amount of credit an institution
or program grants for course work.
• ED is concerned that the lack of a
definition of a credit hour may be the
basis for abuse.
33
Definition of Credit Hour
• OIG has been conducting reviews of
accrediting agencies’ standards for program
length and expressed concern about ED’s
reliance on accrediting agencies’
assessment of a factor that is a component
of Title IV.
• ED’s proposal:
– Defines a Credit Hour:
• Unit of measurement that consists of 1 hour
of classroom or direct faculty instruction and
a minimum of 2 hours of outside student work
34
Definition of Credit Hour
for about 15 weeks for 1 semester/trimester hour of
credit or 10-12 weeks for 1 quarter hour of credit, or
the equivalent over a different amount of time; and
• At least a comparable amount of work for other
activities (i.e., lab work, internships, practice, studio
work); or
• If above not appropriate, institution responsible for the
credit hours awarded, as represented in intended
learning outcomes and verified by evidence of
achievement, and for ensuring the equivalencies are
in accordance with accrediting agency requirements.
35
Definition of Credit Hour
– Additional accrediting agency requirements:
• Must conduct an effective review and
evaluation of the reliability and accuracy
of the institution’s assignment of credit
hours to ensure compliance with ED’s
credit hour definition; and
• Expected to use sampling or other
methods in the evaluation to ensure
compliance.
36
Definition of Credit Hour
– Modifies current formula where the
institution does not provide the clock
hours that serve as the basis for the credit
hours awarded for each program, or the
credit hours are not in compliance or the
program must be offered in clock hours:
• A semester or trimester must include 37.5
clock hours instead of 30 clock hours of
instruction; and
• A quarter must include 25 clock hours
instead of 20 clock hours of instruction.
37
Verification
• Currently, an institution is required to verify the
application information of no more than 30% of
its total number of applicants and an applicant
who is selected for verification must document
certain items of information used in the need
analysis. (34 C.F.R. 51-61)
• ED’s Proposal:
– Simplifying the FAFSA and permitting data
importation from the IRS make a comprehensive
38
review of the verification process advisable;
Verification
– Makes verification regulations flexible to
permit ongoing changes and to provide
assurance that students receiving federal
financial aid are eligible;
– Requires schools to verify 100% of all CPSselected applicants;
– Allows ED to select only targeted data
elements on a student-specific basis;
39
Verification
– An applicant that has not filed and is not
required to file must provide a copy of
his/her W-2 as acceptable documentation;
– Removes data elements recently eliminated
from need analysis (i.e., untaxed Social
Security income, foreign income exclusions,
etc.);
40
Verification
– Changes updating rules to permit changes
in a student’s marital status;
– Requires that all verification data changes
be sent to the CPS for processing;
– Removes the $400 tolerance; and
– Updates verification definitions to reflect
current terminology.
41
Verification
• Reaction from Non-Federal Negotiators:
– Seemed to favor allowing ED to select new
data elements and to specify which ones apply
to any specific student;
– Many noted that the current verification
system represents a large administrative
burden; and
– Rather than making regulatory changes, ED
would announce new data elements and
related documentation requirements in the
Federal Register for the applicable award year.
42
Satisfactory
Academic Progress
• Currently, to be eligible for Federal financial
aid, a student must make SAP, and the
school must have a published policy.
• A SAP policy is considered reasonable if it
contains both qualitative and quantitative
standards along with other elements.
43
Satisfactory
Academic Progress
• ED’s Proposal:
– Closes perceived loopholes including the
effect of retaking coursework on meeting the
qualitative component; the limited basis upon
which some institutions measure SAP; the
overuse of probation as a possible means to
circumvent rules, appeal rights, and the
application of SAP for graduate programs;
– Moves standards to 34 C.F.R. 668.34;
44
– Incorporates proposed definitions;
Satisfactory
Academic Progress
– Outlines provisions that monitor progress at
the end of each payment period and for those
that monitor progress more or less frequently;
– Defines financial aid probation when a student
fails to make SAP and has appealed and has
had financial aid eligibility re-instated. A
student may receive financial aid for one
payment period. At the end, must meet SAP or
meet requirements of the student’s academic 45
plan to qualify for further financial aid;
Satisfactory
Academic Progress
– Defines financial aid warning as a status
when a student fails to make SAP and may
continue to receive financial aid for one
payment period. May be granted without an
appeal.
46
Questions??
Sharon H. Bob, Ph.D. – [email protected]
Powers Pyles Sutter & Verville PC
1501 M Street NW, Seventh Floor | Washington, DC 20005
tel 202.466.6550 | fax 202.785.1756
47
Sharon H. Bob, Ph.D.
Practice Areas:
• Education
• Title IV Eligibility &
Compliance
• Program Reviews and IG
Audits
• Accreditation
• Mergers & Acquisitions
• Public Policy &
Government Relations
• State Licensing
• Education Policy
Member:
• NASFAA
• CCA
Education:
• Ph.D., University of
Maryland, 1976
• BA, State University of
Buffalo, 1971, summa cum
laude
Sharon H. Bob, Ph.D., Higher Education Specialist on Policy and Regulation, is a
member of the Education Group at the Washington, D.C. law firm of Powers Pyles Sutter
& Verville, P.C. Dr. Bob advises all sectors of higher education regarding strategic issues
pertaining to their participation in the federal student financial assistance programs,
accreditation, licensure, education tax benefits, and related regulatory matters.
Dr. Bob advises public and private colleges and universities, as well as private and
publicly-traded companies. In this role, she provides clients with detailed technical
guidance related to compliance with applicable statute and regulations. She regularly
assists postsecondary educational institutions on issues relating to institutional eligibility,
program eligibility, student eligibility, financial responsibility and administrative capability
standards, changes of ownership, adding locations and programs, program reviews and
compliance audits, and institutional responsibilities for the education tax benefits.
Through training seminars and on-site reviews, she assists clients in complying with the
federal requirements for administering federal student financial assistance. Dr. Bob has
authored numerous articles on federal financial aid issues for The Greentree Gazette,
NASFAA's Journal of Student Financial Aid, NASFAA's Student Aid Transcript, the
Career College Link, and other higher education publications and frequently speaks at
meetings of college officials and student aid administrators.
Dr. Bob received her undergraduate degree summa cum laude from the State University
of New York at Buffalo and was elected to Phi Beta Kappa. She received her doctorate
from the University of Maryland.
48
Powers Pyles Sutter & Verville is a Washington, D.C.-based law firm that focuses on
health care, education, and the law of tax-exempt organizations.
Major Current Policy Developments
Brian Moran
Executive Vice President of Government Relations
General Counsel
Career College Association
Areas to be Covered
• Negotiated Rulemaking: Major Program
Integrity Issues
• Student Loan Legislation (SAFRA)
• 90/10 information
• Consumer Financial Protection Agency
• HELP Chairman
• President's FY 2011 Budget Request (Higher
Education Highlights)
• Outlook for the 2010 Elections
Negotiated Rulemaking:
Major Program Integrity Issues
Gainful Employment
• ED outlined two options in Round 2: one
evaluated program costs to expected starting
salaries; the other would have evaluated the
ratio between student loan debt and program
costs.
• In Round 3, ED abandoned option one and
fleshed out option 2.
• Issue would be whether students can repay
loans in 10 years using nor more than 8% of
expected earnings.
51
Negotiated Rulemaking:
Gainful Employment
• Gainful employment in a recognized occupation
(no agreement)
– Programs prepare students for gainful employment
if at the end of each three-year period the debt to
earnings ratio associated with the program is 8%
or less, using median loan debt for the calculation.
– Institutions would be required to report for each
student who completes or graduates the CIP code
of the program, the date the student completed,
and the amounts the student received from
institutional and private education loans.
– Loan debt includes all Federal, institutional and
private loan debt the student has accumulated.
52
Negotiated Rulemaking:
Gainful Employment
– The ratio is calculated by the Secretary using the median
loan debt of all graduates based on a 10-year repayment
schedule and the current annual interest rate on
Unsubsidized Federal Stafford Loans or Direct
Unsubsidized Loans, and income information is obtained
by using the most current Bureau of Labor Statistics
data available to determine the 25th percentile annual
earnings of persons employed in occupations related to
the training provided by the programs. The Secretary
may use national or regional BLS data. The amount of
the annual loan payment is divided by the annual
earnings and rounded down to the nearest one tenth. 53
Negotiated Rulemaking:
Gainful Employment
– If an institution has a debt to earnings ratio of
more than 8%, they may remain eligible under one
of two alternative measures: students who
completed the program have a 90% loan
repayment rate; or by the institution providing
acceptable information to the Secretary showing
graduates from the three-year period had earnings
from occupations related to the training higher
than the BLS earnings used to calculate the ratio.
54
Negotiated Rulemaking:
Incentive Compensation
• Incentive compensation (no agreement)
– The safe harbors are removed
– Institutions may not provide any commission,
bonus, or other incentive payment based directly
or indirectly on success in securing enrollments or
the award of financial aid to any person or entity
engaged in any student recruitment or admission
activity, or in making decisions regarding the
award of student financial aid.
– Institutions, contractors to institutions and other
entities may make merit based adjustments to
employee compensation provided that such
adjustments are not based on success in securing
student enrollments or the award of financial aid.
55
Negotiated Rulemaking:
Incentive Compensation
• Incentive compensation (no agreement)
– A commission, bonus, or other incentive payment
is a sum of money or something of value paid to or
given to a person or entity
– Securing student enrollments means direct or
indirect activities for the purpose of the admission
or matriculation of a student, including preadmission activities
56
Negotiated Rulemaking:
Next Steps
• Because there was no consensus on the team
dealing with program integrity issues, ED is free
to draft language as it wishes.
• ED will issue draft regulations in the Federal
Register and solicit public comment.
• CCA will carefully review the draft regs and
submit comments on behalf of the sector.
• ED will assess input and issue final regs by Nov.
1, 2010 so they can be effective July 1, 2011.
57
Student Loan Legislation
(SAFRA)
• H.R. 3221 included a switch from FFELP to 100%
direct lending. The bill ends the origination of new
FFELP loans on July 1, 2010 and all new federal
education loans would be made through the Direct
Loan program.
• H.R. 3221 changes the Perkins loan program
beginning October 1, 2010. The new Federal Direct
Perkins Loan will be similar to unsubsidized Stafford
loans and serviced by the direct loan program.
• The total funding is increased to $6 billion in new
Perkins loans per year.
58
Student Loan Legislation
(SAFRA)
• The interest rate will remain at 5% but will no
longer be subsidized.
• Sec. 101 – Federal Pell Grants – Investing $40
billion to increase the maximum annual Pell
Grant scholarship to $5,550 in 2010 and to
$6,900 by 2019. Starting in 2010, the
scholarship will be linked to match rising costsof-living by indexing it to the Consumer Price
Index plus 1 percent.
59
90/10 Information
Current law as enacted in 2008 HEOA:
• Title IV of the Higher Education Act of 1965
(HEA), as amended, authorizes programs that
provide students with federal financial aid.
• Proprietary institutions must meet requirements
specified in Section 102 of HEA.
• Proprietary institutions must derive at least 10%
of school revenue from non-Title IV funds. This
latter requirement forms the basis for the “90/10
rule.”
60
90/10 Information –
Temporary Relief
• Extends by one year the period that career colleges can count
the unsubsidized Stafford loan limit increases established by the
Ensuring Continued Access to Student Loans Act of 2008
(ECASLA) as part of the 10 percent in the 90-10 Rule, through
July 1, 2012;
• Provides that funds received through the new Federal Direct
Perkins Loan program are excluded from the 90-10 rule through
July 1, 2012; and
• Increases the number of consecutive years of failure to comply
with the 90-10 rule before Title IV eligibility suspension from two
years to three years and the automatic invocation of provision
status from after one year of failure to after two years of failure.
61
• See H.R. 3221, Title II, Subtitle B, § 229.
Additional 90/10 Information
i.
The 90/10 rule has not proven to be a
meaningful metric for the quality of propriety
school education.
ii. The 90/10 rule is far more likely to be an
indicator of a student body’s socio-economic
status than a reflection of institutional quality.
62
Additional 90/10 Information
iii. Third-party oversight and quality control over
proprietary institutions has been exerted in
other more meaningful ways, including annual:





Department of Education financial and
compliance audits
Re-accreditation
State licensing
Program reviews
Cohort default rate ceilings
63
Additional 90/10 Information
• Two-year Rule
• An effective gatekeeper for preventing new institutions
from cropping up simply to receive Title IV funds.
• Title IV
• Participation requires schools to be either regionally or
nationally accredited by an accrediting agency
recognized by the U.S. Department of Education.
• Annual Audits
• Annual submission to the Federal government of
audited financial statements and financial aid
compliance audits.
64
Additional 90/10 Information
• Retention and Placement Rates
• Nationally accredited schools must report retention and
career placement rates.
• Detailed disclosure requirements for federal and private
student loans offer additional protection to students.
• Institutions will not lightly enter into the loan programs.
• Word-of-Mouth
• Students are savvy consumers
• Word-of-mouth is the best advertising
• State regulatory bodies are robust partners in ensuring
schools are legitimate and effective
65
Sources of 90/10 Problem
• Rapid and substantial increases in Federal
student aid the past 2.5 years.
• The collapse of the private credit markets and
the concomitant drastic decrease in private
student lending.
• The deteriorating economy and job losses
creating substantially more Pell eligible
students.
66
Consumer Financial
Protection Agency (CFPA)
• CFPA part of omnibus financial regulatory
reform in House.
• Amendment offered in the Financial Services
Committee by Rep. Maxine Waters to make
sector schools that officer institutional loans
subject to CFPA.
• E&L Chairman George Miller urged Waters
to expand amendment to cover all schools,
not just sector schools.
67
CFPA
• Waters declined to expand coverage; amendment defeated
in committee 33-35.
• CFPA was folded into massive financial services reform
package, which included a Miller provision to negate an
exemption for postsecondary institutions in underlying bill,
the effect of which is to include all private education loans
under jurisdiction of CFPA.
• NO EXCLUSION FOR CERTAIN PRIVATE EDUCATION
LOANS.—Paragraph (1) shall not apply to any private
education loan (as defined in section 140(a) of the Truth in
Lending Act) provided by a private educational lender (as
defined in such section), including a covered educational
institution (as defined in such section).
68
CFPA
• The bill passed 223-202 along party lines.
• Outlook in the Senate remains murky.
• Senate Banking Committee Chairman Chris
Dodd is not running for reelection.
• Dodd says he is committed to moving his
own financial services reform legislation.
• CFPA’s outlook is uncertain and, if included,
not known whether provision would mirror
that in House bill.
69
HELP Chairman
• HELP Committee Chairman Edward M. Kennedy
passed away on August 25, 2009.
• Senator Tom Harkin took over as Chairman in
September.
• In 1974, Senator Harkin was elected to Congress from
Iowa's Fifth Congressional District. In 1984, after
serving 10 years in the U.S. House of
Representatives, he was elected to the Senate and is
currently serving his fifth term.
70
President's FY 2011 Budget
Request (Higher Education Highlights)
• The President is seeking a 6% increase overall in
the Department of Education (ED)’s budget, with
$2.1 billion directed at higher education programs.
• Supports reforms contained in SAFRA which shift
student lending from the FFEL program to the
Direct Loan program and utilizes savings from that
transfer for an expanded Pell Grants program for
low income students and a newly structured
Perkins loan program.
71
President's FY 2011 Budget
Request (Higher Education Highlights)
• Proposes to convert Pell Grants into a mandatory program
and increase the maximum award annually by the
consumer price index plus 1 percentage point;
• The budget anticipates $34.9 billion for Pell Grants in 2011,
supporting a projected maximum award of $5,710 in FY
2011 and up to an estimated maximum of $6,900 by 2019;
• Proposes $10.6 billion over 10 years for the American
Graduation Initiative, which would support the President’s
commitment to a competitive workforce by investing in
reforms to raise graduation rates, tie courses to business
needs and improve remedial education at community
colleges.
72
President's FY 2011 Budget
Request (Higher Education Highlights)
• Proposes $3.5 billion over 5 years for a College Access and
Completion Fund which would make grants to states,
institutions of higher education, and other organizations to
support new approaches to improving college success and
completion, particularly for students with disadvantage
backgrounds;
• Includes $7.5 billion over 10 years to expand income-based
repayment options to help borrowers with large loan balances
and low incomes reduce monthly payments and shorten the
repayment period so that borrowers will pay only 10% of their
discretionary income in loan repayments and can have the
rest of their remaining debt forgiven after 20 years;
73
President's FY 2011 Budget
Request (Higher Education Highlights)
• Proposes $1.1 billion to expand and modernize the Perkins
Loan program so that it would provide $6 billion a year in
new loan volume – six times the current Perkins volume –
for up to 2.4 million students at roughly 2,700 additional
postsecondary institutions. The Department would service
Perkins Loans along with other federal loans, with
estimated overall savings totaling $5.5 billion over 10
years;
• Extends the American Opportunity Tax Credit for ten years
for a tax credit benefit of up to $10,000 total for tuition and
fees for the first four years of postsecondary education;
74
President's FY 2011 Budget
Request (Higher Education Highlights)
• Proposes reform of the Workforce Investment Act to include
establishment of a Workforce Innovation Partnership between
Department of Labor (DOL) and Education to simplify and
consolidate job training programs;
• Sets aside $261 million in DOL funding and $60 million in ED
funding to support competitive grants for the most promising,
research-based strategies, including regional approaches and
sectoral partnerships for adults and the combination of summer
or year-round employment with education for youth.
• The Department of Labor FY 2011 Budget Request targets job
training funding for high-growth sectors of economy and workers
through $85 million for green job training and $40 million for
transitional job programs.
75
U.S. Senate
2010 Outlook
Democrats
Republicans
57
41
Seats up in 2010
18
18
TOSS UP
9
9
TOSS UP
LEAN D
2
0
LEAN R
LIKELY D
1
3
LIKELY R
SOLID D
8
13
SOLID R
Seats up in 2012
20
10
Up in 2014
19
13
76
U.S. House
2010 Outlook
Democrats
Republicans
Total
257
178
435
Solid Dem.
170
0
170
Likely Dem.
37
0
37
Lean Dem.
26
1
27
Toss Up
20
2
22
Lean Rep.
3
7
10
Likely Rep.
1
16
17
Solid Rep.
0
152
152
77
Governors' Races
2010 Outlook
Democrats
Republicans
26
24
Seats up in 2010
19
20
TOSS UP
15
15
TOSS UP
LEAN D
4
6
LEAN R
LIKELY D
3
4
LIKELY R
SOLID D
4
3
SOLID R
78
Allied Health Specific Legislation
Tom E. Netting
Executive Director
Higher Education Allied Health Leaders Coalition
American Recovery and
Reinvestment Act - Labor
$1.25 Billion
$200 Million
$750 Million
- States for dislocated worker
employment and training
- National reserve for dislocated
workers
- Competitive grants for worker training
and placement in high growth and
emerging industries
Funds Available Through June 30, 2010
American Recovery and
Reinvestment Act - Health & Human Services
$500 Million
- Health professions workforce
shortages ($75 million to NHSC
through 9/30/11)
$2 Billion
- National Coordinator for Health
Information Technology
- Health Information Technology
for Economic and Clinical Health
Act (HITECH)
National Health
Information
Technology
Infrastructure
National Coordinator,
HIT Policy Committee,
and HIT Standards
Committee
HITECH
Electronic Health Records
for every U.S. Citizen 2014
HITECH
Demonstration Program
to Integrate Information
Technology into
Clinical Education
Information Technology
Professionals in
Healthcare
ARRA - Trade Adjustment Act
• Community College and Career Training
Grant Program (Labor)
PROPRIETARY INSTITUTIONS ELIGIBLE
House and Senate
Health Care Bills
House Bill: H.R. 3962
Senate Bill: H.R. 3590
The Affordable Health
Care for America Act
The Patient Protection
and Affordable Health
Care Act
• Title V – Health Care
Workforce
Sec. 5204
Health Workforce Loan
Repayment Program
H.R. 3590:
Title V
Health Care
Workforce
Sec. 5206
Training for Mid-Career Public
and Allied Health Professionals
Sec. 5205
Allied Health Recruitment
and Retention Program
Sec. 5302
Training Opportunities
For Direct Care Workers
H.R. 3590:
Title V
Health Care
Workforce
Sec. 5305
Geriatric Education and Training,
Career Awards, Comprehensive
Geriatrics Education
Sec. 5309
Nurse Education, Practice,
and Retention Grants
H.R. 3590:
Title V – Health Care Workforce
• Sec. 5507: Demonstration Projects to
Address Health Professions Workforce
Needs*
– Low-Income Individuals With Opportunities
for Education, Training, and Career
Advancement To Address Health Professions
Workforce Needs; and
– Develop Training and Certification Programs
for Personal or Home Care Aides
H.R. 3590:
Title V – Health Care Workforce
Definition of an
Institution of Higher Education
PROPRIETARY ELIGIBLE*
Other Major Legislation
Tracked By HEAL
Nursing Bills – 100+
Health IT Bills – 40+
Allied Health Bills – 30+
Post 9/11 GI Bill – 15+
Questions, Summaries, and Information
Contact:
Tom E. Netting, Executive Director
Higher Education Allied Health Leaders Coalition
750 9th Street, NW
Washington, DC 20004
(202) 824-1724
[email protected]