An active summer leads to historic higher ed measures

In stark contrast to four years of foot-dragging on higher education legislation in the Republican Congress, House and Senate Democrats put themselves on the higher ed map in their first seven months in office.

This summer saw both chambers pass historic student aid legislation as part of budget bills known as “reconciliation.” First, on July 11, the House passed the College Cost Reduction Act of 2007 by a vote of 273-149. This legislation, which cuts subsidies to lenders by nearly $19 billion and directs the savings to students, provides the single largest increase in college aid since the GI Bill of 1944. Supporting the bill were all the Democrats and 47 Republicans, thanks in part to active communication by AFT members.

AFT members were crucial in helping convince their legislators about the importance of the bill. In the four days before the vote, they sent 1,182 letters to 267 House offices through the AFT Legislative Action Center and the e-Activist network. The AFT legislative department also sent persuasive letters to both the House education committee and to the full House.

The bill increases the maximum Pell Grant award by $500 over five years, cuts the interest rate on federal student loans in half (to 3.4 percent), and provides other forms of relief for borrowers in unmanageable debt situations. It cuts the lender subsidies by half a percentage point, and extends tuition assistance and/or loan forgiveness to students who commit to working in high-need education and public service fields.

A week later, by a vote of 78-18, the Senate passed its version of the reconciliation bill, the Higher Education Access Act of 2007. The Senate bill increases the maximum Pell Grant by $1,000 over five years,  provides an income-based repayment plan that caps loan payments at a reasonable percentage of income and forgives the loans after 25 years. The financial aid help to students is paid for through a cut to lender subsidies. Both bills will go to conference in the fall.

Consideration of the bills occurred amid a backdrop of scandal regarding student loan providers like Sallie Mae and Nelnet. The financial companies were not shy about predicting dire consequences if their subsidies were cut, and they heavily lobbied their friends on the Hill. Since November, reports the blog Higher Education Watch (at www.newamerica.net), Sallie Mae has contributed $108,000 to fiscally conservative Democrats, but its largesse failed to turn any votes.

Next on the docket is the Higher Education Act reauthorization. The Senate was first out of the gate to pass its version of the massive policy bill, which expired in 2003 and was last revamped in 1998. The Senate bill, which passed on a 95-0 vote, addresses student loan ethics reform, soaring college tuition and fees, simplification of the financial aid application procedure, promoting college prep programs and beefing up teacher preparation programs.

There is a downside from the AFT’s perspective. Provisions in the bill that raise concern include one regarding student-teacher interchange in the classroom and another regarding academic autonomy in the determining of Title VI (international studies) grant recipients. Because this bill will go to conference with a House bill (expected in the fall), the AFT may activate members to press for changes at the opportune time.

The final bit of good news was the passage in the House of a spending bill for education, labor and healthcare programs that increases funding by nearly $7 billion over the current level and more than $10 billion over President Bush’s request. Hundreds of AFT e-Activists were alerted to contact their representatives about this bill. And the passage by a vote of 276-140 is a credit to the activism of AFT members.