Higher Ed Agenda Facing Delays in Washington
Partisan disputes could mean important legislation won't move until after election
Friday, May 28, 2004
A key package of federal laws that regulates and funds numerous aspects of higher education is up for renewal this year, but it is not expected to be finalized before this fall's election.
Although the current Higher Education Act will be extended until a new one is enacted, slow progress on the bill has left many institutions of higher education -- including Duke -- uncertain about changes to federal education regulations.
Some hints can be found in the legislation that has been introduced to date. House Republicans have put together their version of the bill, releasing it earlier this month under the name of the "College Access and Opportunity Act of 2004."
Most associations representing higher education view this bill as beneficial in some areas, harmful in others. American Council on Education President Terry Hartle called the legislation "deeply flawed," but thanked congressional staff for their willingness to "work with us on improving the bill."
According to education officials, the bill's positive steps include eliminating the origination fee for student loans and raising some of the annual limits on borrowing though federal loan programs. However, the bill would leave static many funding limits -- such as that for the Pell grant -- and impose new federal rules on such academic matters as accreditation and transfers of credit from other institutions.
What is attracting the most attention, however, is a part of the proposal that would significantly change the repayment terms for consolidated student loans. Under existing law, borrowers who consolidate their student loans can lock in a fixed interest rate, an attractive proposition given the low rates now available. Under the new proposal, students would refinance at a variable rate, which would go up or down based on the movement of interest rates.
Other potential areas of contention include proposed language to encourage institutions to practice "intellectual diversity." These provisions -- while non-binding -- are being advocated by politically conservative activists who say they seek political balance in classroom conduct, hiring and tenure decisions and choices of campus speakers, among other things.
The bill also would regulate college cost increases and repeal several statutory provisions that have been effective in stopping certain abuses of the student aid programs.
Duke officials are closely following the progress of the Higher Education Act reauthorization process.
"So far, we are seeing the initial moves in a legislative game that may go on for some time," said Nan Nixon, assistant vice president for federal relations. "The Senate and the White House have yet to weigh in on this subject in a comprehensive fashion, so it is difficult to know at this point exactly where things will end up.
"Major additional action on this legislation this year appears unlikely, particularly with the House, Senate and White House all in play in November."
Colleges and universities aren't the only ones paying close attention to this debate, if campaign contributions are any guide. According to the Federal Election Commission, Sallie Mae, the government-sponsored student loan company, has already donated more than $500,000 to political candidates through its Political Action Committee. For-profit colleges are also making contributions, with the Career College Association contributing more than $75,000 through its PAC.
"We are fortunate in North Carolina to have a political structure that understands how important research and education are to the economic future of our state," said John Burness, senior vice president for public affairs and government relations. "Although there are numerous interests pushing for specific action in this area, we will continue working to get the best possible outcome for our students, families and Duke."
