COMMUNITY COLLEGE FEDERAL LEGISLATIVE OVERVIEW
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Transcript COMMUNITY COLLEGE FEDERAL LEGISLATIVE OVERVIEW
AACC FEDERAL
LEGISLATIVE AND
REGULATORY UPDATE
MCCA
July, 2014
David Baime
Senior Vice President, Government Relations & Policy Analysis
American Association of Community Colleges
FEDERAL LEGISLATIVE OVERVIEW
Funding/Pell Grant Program Status
HEA Reauthorization
WIA Reauthorization
H.R. 3393 – AOTC Reform
Gainful Employment Regulations
Administration’s Ratings System
Title IX and Related Issues
APPROPRIATIONS & BUDGET
Under Bipartisan Budget Act, funding levels were
set for FY 2014 and FY 2015 and sequestration
was partially replaced. Sequestration continues.
Senate Labor-HHS-ED Appropriations Subcommittee
approved legislation June 12; further action stymied by
threat of full Committee amendments .
Senate results largely positive with exception of use of
Pell Grant (temporary) surplus for other programs.
House markup may take place later in July.
CR for first part of FY 2015 now seems inevitable; and
lame duck session afterwards.
PELL GRANTS
The automatic (CPI) increase in the maximum
grant for 2014- 15 (starts July 1) brought total to
$5,730 – an $85 increase.
Program has a surplus for FY 2015 and 2016; cost
has been dropping. Beyond 2017 the program is
slated to have significant shortfalls.
Reinstatement of eligibility for Ability -to-Benefit
students remains a community college priority and
partial restoration in FY 2015 is possible.
HEA REAUTHORIZATION: GENERAL
The Higher Education Act (HEA) was last reauthorized in 2008.
Extensive hearing have led to introduction of House and Senate
legislation. Legislation will not be enacted in 2014.
Congressional priorities include:
Increasing completion rates
Reducing “cost”
Accreditation reform
Better consumer information
Simplifying student aid programs
Innovative learning models
Regulatory relief (Senate task force established)
HEA REAUTHORIZATION: AACC
PRIORITIES
Pell Grants: Maintain maximum grant without harmful limitations
on eligibility; reinstate Ability -to-Benefit & Year-Round Pell
eligibility; expand current 12 semester limit; provide some
eligibility flexibility for both programs/students (2% of total).
Student Loans: Lower borrowing limits and give colleges authority
to reduce loan maximum; “decouple” Pell Grant eligibility from
that for loans; restructure loan default rates and penalties.
Affordability & Completion: Stronger state maintenance of effort;
bolster articulation agreements to extent possible.
Measurement: Create accurate Federal graduation (combined
with transfer) rate.
HEA REAUTHORIZATION: HARKIN BILL
Senator Tom Harkin (D-IA), chairman of the Senate Heath,
Education, Labor and Pensions Committee has released a
draft comprehensive HEA reauthorization bill.
Staf f shared early draft of bill with AACC. Further comments
due August 29.
Legislation is ambitious, with major policy changes, far reaching requirements on institutions, and new programs.
Highlights include year-round Pell reinstatement (but only for
full-time students), partial “Ability -to-Benefit” reinstatement.
New programs focused on community colleges: dual
enrollment (marred by extensive accompanying requirements)
and workforce training program (similar to what might have
been included in WIA).
HEA REAUTHORIZATION: HARKIN BILL
New Federal-State partnership program created; bitterly
opposed by private non-profits.
New commission to examine success of institutions; would be
problematic for community colleges.
Early draft included unit record data system with far -reaching
data elements, but was pulled from draft; staf f say it will
return.
Stands 0.0001% chance of enactment in 2014.
HEA REAUTHORIZATION: ALEXANDERBENNETT BILL
Significant bi-partisan legislation supported by possible chair
of HELP Committee in 2015. Overall, quite positive for CCs.
Creates a two-item needs assessment system for Pell Grants,
based on income and family size. Waivers permitted. Uses
“prior-prior year” IRS data.
Restores year-round Pell Grant.
Allows aid administrators to reduce loan maximums if
justified by post-completion earnings.
HEA REAUTHORIZATION: HOUSE BILLS
AND LEGISLATIVE ACTIVIT Y
House Education and Workforce Committee has reported 3 major
HEA reauthorization bills, start of piecemeal reauthorization.
Bills approved on bi -partisan basis though Democrats’
amendments were thwarted by Republicans.
Legislation headed to House floor week of July 21 .
H.R. 4983 is most important bill, establishing new “College
Dashboard” and data to populate it that derives from current
IPEDS system. Legislation:
Creates 3 graduation rates (100%, 150% and 200%) that exclude
transfers. AACC supports transfer inclusion and 300% window and is
working to make changes.
Would report debt levels; link to BLS wages; variety of information on
students and student aid.
Bill eschews student unit record data system and eliminates “watch
lists.”
HEA REAUTHORIZATION: HOUSE BILLS
AND LEGISLATIVE ACTIVIT Y
H.R. 4984 creates new counseling requirements for institutions.
Changes include annual loan counseling, and specific counseling
for Pell Grant recipients (new).
Opposing enhanced counseling is politically problematic but AACC is
concerned about institutions’ ability to comply.
H.R. 3136 would create a new competency -based demonstration
program at ED. Legislation would allow ED to waive a broad
range of statutory and other requirements that limit institutions’
ability to deliver competency -based education.
AACC supports House legislation – but changes are needed. Bills
will not be enacted in 2014.
WORKFORCE INVESTMENT ACT (WIA)
REAUTHORIZATION
Bi-partisan House and Senate negotiations led to agreement
in early summer, 10 years after law’s expiration.
Legislation (WIOA) now approved, by overwhelming margins,
by both chambers.
Legislation good but not perfect; AACC endorsed.
Highlights include: retains CC role on local boards (and
some state boards); increased contracting authority; better
integration of adult education into training programs and
career pathways.
Imperfections: subsequent trainer eligibility criteria are
problematic; community colleges not made full partners in
system; no CC-specific program; infrastructure provisions.
H.R. 3393 – AOTC REFORM
Black-Davis Legislation, H.R. 3393, Student and Family Tax
Simplification Act, is headed to the House floor.
Legislation was bi-partisan, growing out of tax reform ef fort.
Legislation lost Democratic support when income phase -outs
were increased, thereby benefitting more students but
creating “pay for” issue for Ds.
Loss of bi-partisanship major blow to bill’s prospects.
AACC strongly supports bill, alone among major higher
education associations:
It targets aid to needier students with increased refundability.
Resolves issue related to Pell Grant offset that decreases CC awards.
Ends inappropriate subsidies to more affluent students.
GAINFUL EMPLOYMENT NPRM
Regulation largely targeted at for-profit colleges.
Community colleges bear brunt of regulation in non profit higher education.
GE programs include all Title IV-eligible certificate (nondegree) programs at community colleges and nearly all
educational programs at for-profits.
GAINFUL EMPLOYMENT METRICS
Programs’ Title IV eligibility judged primarily by:
Debt-to-Earnings
𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑜𝑎𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡
𝐴𝑛𝑛𝑢𝑎𝑙 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠
Program Cohort Default Rates (pCDR)
&
𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑜𝑎𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡
𝐷𝑖𝑠𝑐𝑟𝑒𝑡𝑖𝑜𝑛𝑎𝑟𝑦 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠
𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑟𝑠 𝑖𝑛 𝐷𝑒𝑓𝑎𝑢𝑙𝑡
𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑟𝑠 𝑖𝑛 𝑅𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡
Debt-to-Earnings - 30 or More Title IV Completers
𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑜𝑎𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡
> 12%
𝐴𝑛𝑛𝑢𝑎𝑙 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠
&
𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑜𝑎𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡
𝐷𝑖𝑠𝑐𝑟𝑒𝑡𝑖𝑜𝑛𝑎𝑟𝑦 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 > 30%
pCDR – More Than 30 Title IV Borrowers
𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑟𝑠 𝑖𝑛 𝐷𝑒𝑓𝑎𝑢𝑙𝑡
𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑟𝑠 𝑖𝑛 𝑅𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡
> 30%
GE – AACC PROPOSED MODIFICATIONS
Focus on programs with high indebtedness —just 9%
of all CC GE students take out federal loans.
Programs with a median loan debt of $0 should
automatically pass debt-to-earnings & pCDR metrics.
Remove or limit pCDR for programs with low
borrowing incidence.
Reduce the burden on smaller programs (majority of
CC offerings) by not requiring initial reporting.
OBAMA COLLEGE RATINGS SYSTEM
Administration currently working on higher education
ratings system, to take effect for 2015 -16 school year.
Draft of system delayed to this fall.
Serious effort with extensive stakeholder input.
Proposal calls for eventually tying federal aid to the
ratings system; this requires Congressional action.
AACC does not support ratings system – not an
appropriate federal role and not relevant to most
community college students.
TITLE IX AND SEXUAL ASSAULT
The issue of sexual assault on college campuses has reached
a fever pitch.
Community colleges are not a primary focus, but are deeply
implicated
Colleges remain responsible for Title IX compliance.
Compliance with complicated law can be dif ficult.
Colleges also must report information under Clery Act, and
new regulations on the Violence Against Woman Act are
forthcoming.
Senators McCaskill and Gillibrand have held 3 roundtables;
circulated survey on campuses sexual assault, etc., and
released results; will be introducing legislation.
AACC establishing legal advisory panel to help guide activity.
Thank You