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
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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