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Full House Passes Landmark Student Aid Bill

Today, the full House of Representatives passed the Student Aid and Fiscal Responsibility Act of 2009 (HR 3221) by a 253-171 vote. The bill utilizes savings from the elimination of the Federal Family Education Loan Program (FFELP) in favor of 100% college/university participation in the Direct Loan program. The legislation would index future Pell increases to the Consumer Price Index plus 1%. Financial institutions that provide student loans have fought the elimination of FFELP, as it essentially removes them from the federal student aid market. Funding recouped from the elimination of FFELP will also fund much of President Obama’s college access and persistence plan, as well as a number of additional initiatives.

The University of Washington’s Office of Student Financial Aid, and Office of Federal Relations have been active in providing members of the Washington Congressional delegation with feedback on HR 3221. There remains room to make improvements on the House bill, particularly in its provision of a College Access and Completion Fund, where funding provided to states could result in increased regulatory control by states over institutions of higher education. The legislation is now being worked on the Senate, and is expected to receive full consideration later this fall or early in 2010.

Full Summary of HR 3221

This Week on Capitol Hill, September 14-18

Monday, September 14

Floor Action:

  • The Senate will resume consideration of the fiscal 2010 Transportation-HUD Appropriations bill (HR 3288). Roll call votes are possible after 5:30 p.m. 
  • The House is expected to take up several measures under suspension of the rules. Votes expected at 6:30 p.m.

Tuesday, September 15

Both the House and the Senate will be in session.

Committee Meetings:

  • Senate Committee on Energy & Natural Resources will hold a full committee hearing on the Impact of Greenhouse Gas Trading Program

Wednesday, September 16

Both the House and the Senate will be in session

  • The House is expected to take up a fuel efficiency technology measure (HR 3246).
  • The House Committee on Natural Resources will hold a full committee hearing on Land, Energy and Aquatic Resources

Thursday, September 17

The House is expected to take up the Student Aid and Fiscal Responsibility Act of 2009 (HR 3221).

Committee Hearings:

  • Senate Committee on Energy & Natural Resources will hold a full committee hearing on the Economic Effects of Climate Change Legislation  
  • The House Committee on Natural Resources will continue its full committee hearing on Land, Energy and Aquatic Resources

  Friday, September 18

The House is not in session.

Update from Washington, DC

This week, lawmakers will attempt to clear the decks of routine legislative business on the floors of each chamber so that they can continue to give their full attention to how to move major aspects of Democrats’ signature priorities: healthcare reform and climate change legislation.

The House will take up a bill to overhaul the federal student loan system, which has become a top priority for President Obama.  The bill would eliminate the Federal Family Education Loan Program and replace it with the Direct Lending Program administered by the US Department of Education.  It is estimated that this bill could save up to $87 billion, with some of those savings being used to increase Pell Grants and reduce the federal deficit. 

The House will also consider legislation that will provide for an Energy Department program for the research, development, demonstration and commercial application of vehicle technologies.

The Senate plans to finish work on the FY10 Transportation-HUD spending bill early this week, with the first votes on amendments to that measure tonight and stretching into Tuesday.  It is clear that they won’t meet the September 30th deadline so a short-term continuing resolution is all but assured.

The Senate Finance Committee is expected to release its long-awaited health care overhaul legislation in advance of a markup. The committee needs to make final decisions on prohibiting federal funds for abortions, changes to the medical malpractice system, and expanding Medicaid.  Democratic leaders have a Tuesday deadline to come up with a bipartisan proposal before Democrats decide to go it alone on a measure, an option that could involve budget reconciliation procedures.

Budget reconciliation is a senate procedure that would allow the majority party to limit debate and approve a measure with only 51 votes as opposed to the usual 60.  Reconciliation, enacted in 1974 to reduce the budget deficit through better legislative discipline, is designed to align, or reconcile, existing spending laws with the annual budget resolution adopted by the House and Senate.  Unlike most other measures, reconciliation bills are immune to a filibuster (which requires 60 votes to overcome). In years past, both parties have used the procedure to advance policy changes that have had little or nothing to do with deficit reduction.

The use of reconciliation does come with some risks to the majority party.  The rule allows any senator to raise a point of order to strike out parts of a reconciliation measure that are found not to be budget issues.  To a large degree, it is the Senate parliamentarian — an appointee of the majority leader — who makes the call on what does and does not qualify for a spot in a reconciliation bill.  In the case of health reform, the Senate Democrats run the risk of having some portions of their health bill removed from consideration.

It will also be a busy work for the Office of Federal Relations.  Several members of the UW community are in DC this week for a variety of national meetings.  President Emmert will attend the Coalition of Universities for Global Health and participate in a panel discussion with his colleagues from other universities.  He will also visit with agency officials and Members of Congress.  Other faculty members will also be on the Hill this week advocating for global health initiatives and geological/seismic policy priorities.  We are also looking forward to seeing other members of the UW community in DC in the next few weeks.

Christy Gullion, Director

Student Aid Legislation on the Table in Senate

As Congress returned from August recess earlier this week, student aid advocates immediately focused their efforts on the Senate. In the coming weeks, the Senate will likely consider a companion bill to the House Student Aid and Fiscal Responsibility Act (HR 3221) -which passed easily in the House Education and Labor Committee on July 21st. The House legislation would implement much of President Obama’s student loan proposal, most notably ending the Federal Family Education Loan Program (FFELP) in favor of 100% participation in the Direct Lending (DL) program in order to realize savings that can be used to bolster the Pell Grant program. The House bill was set on a course that would allow for it to be considered as part of a budget reconciliation process or the normal legislative process. The budget reconciliation process may also be utilized for health care reform, as it allows a simple majority (51 votes) to pass legislation in the Senate as opposed to a super-majority of 60 votes. Reconciliation instructions require the House and Senate education committees to report reconciliation bills by Oct. 15. If the deadline is missed, leaders will have to utilize the normal legislative process. 

Although the legislation has traveled a relatively smooth path in the House, the outcome in the Senate is less certain. Some members with FFELP lenders in their states have balked at the Administration’s plan and are exploring alternatives. As a Direct Lending school with a large population of Pell grant students, the UW is actively pushing for legislation that will enable increases in mandatory spending for Pell.

In related news, Senator Harkin (D-IA) will take over the Senate Health, Education, Labor and Pensions (HELP) Committee that was previously chaired by former Senator Ted Kennedy. Despite some concerns about the President’s proposal to end FFELP, Senator Harkin has long been viewed as a reliable advocate for student aid.

National Science Board Seeking Nominations for Public Service Recognition

The National Science Board (NSB) Public Service Award honors individuals who and groups that have made substantial contributions to increasing public understanding of science and engineering in the United States.  These contributions may be in a wide variety of areas that have the potential of contributing to public understanding of and appreciation for science and engineering – including mass media, education and/or training programs, entertainment, etc.

The NSB Public Service Award is given to one individual and one group recipient in May of each year.  Past recipients include: NUMB3RS, the CBS television drama series; Ira Flatow, Host and Executive Producer of NPR’s “Science Friday”; Alfred P. Sloan Foundation; Bill Nye The Science Guy; and NOVA, the PBS television series.

For nomination instructions, please visit http://www.nsf.gov/nsb/awards/public.jsp.  All inquiries about the award or nomination procedures should be directed to Jennifer Richards, National Science Foundation (jlrichar@nsf.gov).

Deadline: November 4, 2009