Monday, March 15, 2010

News: The Shrunken Student Aid Bill - Inside Higher Ed

News: The Shrunken Student Aid Bill - Inside Higher Ed

The Shrunken Student Aid Bill

March 15, 2010

WASHINGTON -- As Congressional Democrats and the White House begin a last-ditch push to pass legislation to overhaul health care this week, it remains far from certain that a plan to revamp the student loan programs will be merged into the health legislation. While the odds of that happening are better than not, it is still possible that Democrat leaders will decide to ditch or postpone action on the student aid measure if they conclude that it could discourage even a few key lawmakers from supporting the health care bill.

But after several intense days of behind-the-scenes negotiations, a few things have become clear(er) about the stripped-down student aid bill that Congress may consider in the coming days:

  • The measure will fall well short of the Obama administration's original proposal to transform the student aid programs, giving President Obama and Education Secretary Arne Duncan few of the policy changes and accountability tools they'd hoped for.
  • Pell Grants would remain the legislation's top priority, although because of the program's rapidly escalating costs, the value of the maximum grant would rise less than originally planned.
  • Community colleges will get little or none of nearly $10 billion they'd been slated to receive.
  • Historically black, Hispanic and other colleges could benefit because Democratic leaders are afraid of angering small but powerful blocs of minority members of Congress.
  • Some of the savings from the loan overhaul may be used to help pay for health care reform.

As of late Sunday, the situation surrounding the health/financial aid