New Proposals for Reauthorization

With the upcoming reauthorization of the Higher Education Act, members of Congress unveil new proposals for the future of higher education on a continuous basis. NASFAA’s series, The Capitol Recap, will provide a monthly update on new pieces of legislation introduced in both the House of Representatives and the Senate to provide aid administrators with most up-to-date information for their offices and their own administration. Bills listed here, unless otherwise noted, have been referred to committee and are awaiting action or consideration. Reported by NASFAA.

December 2015
Access and Innovation

HR 4158, Restoring Investment in ATB Student Education (RISE) Act: This bill, introduced by Rep. Gibson on December 2, would restore federal student aid eligibility for students without a high school diploma or equivalent. Eligibility for these students ended in 2012.
HR 4221, SMART Grant Reauthorization Act: This bill would restore the National Science and Mathematics Access to Retain Talent (SMART) Grant Program, which expired in 2011. Rep. Carney (D-DE) introduced this measure on December 10.
HR 4222, Higher Education Savings Account Act: This bill would create a pilot program that establishes “higher education savings accounts” for ninth and tenth grade students who participate in the free/reduced lunch program based on the current Pell Grant maximum award amount, according to a fact sheet. Rep. Carney (D-DE) introduced this measure on December 10.
Campus-Based Programs

HR 3594, Federal Perkins Loan Program Extension Act of 2015: Perhaps the most notable student aid legislation introduced in December, this bill, which comes nearly three months after the September 30 expiration of the program, would (1) eliminate Perkins loan eligibility for new graduate students beginning in the 2016-17 year; (2) require schools to award all subsidized and unsubsidized Direct loans prior to awarding Perkins for new undergraduate Perkins borrowers; and (3) end all Perkins loan authority effective September 30, 2017, thereby discontinuing any grandfathering beyond that date. The bill cleared both chambers by unanimous consent before President Obama signed the bill into law on December 18. The bill was analyzed more closely by NASFAA in Today’s News.
Loans & Repayment

HR 4223, Protecting Our Students by Terminating Graduate Rates that Add to Debt (POST GRAD) Act: Introduced by Rep. Chu (D-CA) on December 10, this bill, which was covered in Today’s News, would again allow graduate and professional students to receive subsidized Stafford loans. The bill would restore eligibility beginning in the 2016-2017 award year. Thirteen Democrats have joined as co-sponsors.
S. 2387, Protection of Social Security Benefits Restoration Act: This bill would prohibit the federal government from seizing Social Security benefits for unpaid federal debts, including student loans. Sen. Wyden (D-OR) introduced this measure on December 12 with seven Democratic co-sponsors.
HR 4256, Simple Income-Based Repayment Act: This piece of legislation, which was introduced by Rep. Murphy (D-FL) on December 15, would automatically enroll all new borrowers of federal student loans (except Parent PLUS) into Income-Based Repayment (IBR); existing borrowers may opt-in if desired. According to a fact sheet, the bill would require automatic payments through payroll deduction.
Military & Veterans Aid

HR 4260, Servicemember Higher Education Protection Act: This measure, introduced by Rep. Sinema (D-AZ) on December 15, aims to address several areas of student loan repayment for active duty servicemembers and veterans. Specifically, the bill would fully discharge student loans for veterans assigned a 100 percent service-related disability rating, defer payments for military spouses for six months in the event of relocation, prevent interest from accruing when an active duty servicemember is serving in combat, and require certain consumer information disclosures for servicemembers, veterans, and their families. Two Republicans have co-sponsored the bill.
Pell Grants

HR 4222, Higher Education Savings Account Act: This bill would create a pilot program that establishes “higher education savings accounts” for ninth and tenth grade students who participate in the free/reduced lunch program based on the current Pell Grant maximum award amount, according to a fact sheet. Rep. Carney (D-DE) introduced this measure on December 10.
Student Aid Funding

HR 2029, Consolidated Appropriations Act: In a $1.1 trillion agreement, most student aid programs are flat-funded for FY16, which will affect award year 16-17. The package includes increases for the TRIO programs and GEAR UP. Though few programs see increases, some of the devastating cuts scattered across both the House and Senate bills have been remedied. The bill cleared both chambers on a largely bipartisan basis before being signed into law by President Obama on December 18. A more detailed analysis can be found in Today’s News.