The Higher Education Act of 1965 (HEA) () was legislation signed into United States law on November 8, 1965, as part of President Lyndon Johnson's Great Society domestic agenda. Johnson chose Texas State University (then called "Southwest Texas State College"), his alma mater, as the signing site. The law was intended "to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education". It increased federal money given to universities, created scholarships, gave low-interest loans for students, and established a National Teachers Corps. The "financial assistance for students" is covered in Title IV of the HEA.
The Higher Education Act of 1965 was reauthorized in 1968, 1972, 1976, 1980, 1986, 1992, 1998, and 2008. The current authorization for the programs in the Higher Education Act expired at the end of 2013 but has been extended through various temporary measures since 2014. Before each re-authorization, Congress amends additional programs, changes the language and policies of existing programs, or makes other changes.
1965 Act
In January 1965, President Lyndon Johnson told Congress that higher education was "no longer a luxury but a necessity" and urged Congress to enact legislation to expand access to college. Representative Edith Green of Oregon introduced H. R. 3220 as a bill to "strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary education." Senator Wayne Morse of Oregon introduced the Senate version of the bill, S. 600. The bills sought to create an advisory council to review teacher training programs and to create a National Teacher Corps, which would recruit teachers to serve in low-income areas and train teachers through internships. Other provisions of the bills included financial aid, scholarships, work-study, and library enhancements. Throughout 1965 numerous hearings were held by Special Subcommittee on Education, and the Education Subcommittee of the Senate Committee on Labor and Public Welfare held numerous hearings. Based on the recommendations of university administrators, educators, and student aid officers, a new bill was introduced: H. R. 9567. It was passed by the House of Representatives on August 26, and the Senate passed the bill on September 2.
In signing the Higher Education Act of 1965 into law, President Johnson described the act, along with the Elementary and Secondary Education Act, as "keystones of the great, fabulous 89th Congress" that would spread "the roots of change and reform" throughout the nation.
Scope The act contains eight sections or titles.
Title I, General Provisions Title II, Teacher Quality Enhancement Title III, Strengthening Institutions Title IV, Student Assistance Title V, Developing Institutions Title VI, International Education Programs Title VII, Graduate and Postsecondary Improvement Programs Title VIII, Additional Programs.
Amendments to the HEA
Changes in 1976 Before 1976 student loans were dischargeable in bankruptcy like other unsecured loans. An undue hardship test was introduced for federally insured loans under five years.
Changes in 1986 The 1986 amendments to the HEA included the creation of a funding stream for Historically Black Colleges and Universities (HBCUs). The proposal enjoyed bipartisan support.
Changes in 1992 The 1992 reauthorization of the HEA was praised for its bipartisanship, developed in a Democratic congress and signed by a Republican president. The legislation significantly expanded the student loan program by creating an "unsubsidized" version of the loans available to any student, regardless of whether the financial aid formulas determined that they had unmet need. In the 1992 presidential campaign universal access to loans had become a policy supported by both major candidates.
The idea of having loans be made directly by the federal government, instead of guaranteeing and subsidizing bank loans, gained currency in the Bush administration as the result of budget reforms. Some George H. W. Bush advisors supported the switch as a way of saving money and simplifying the program, but the White House ultimately opposed the approach. At the insistence of some in Congress, the 1992 reauthorization included a pilot program of direct lending, planting the seed for a full-blown Direct Student Loan Program proposed in Clinton's first year as president.
A third change to the loan program was to pilot an income-contingent repayment option. Several versions of the concept had been proposed by both Democrats and Republicans in Congress. Meanwhile, in the presidential campaign, candidate Bill Clinton included it as an element of his National Service campaign, and President Bush indicated support for the concept when he endorsed universal access to loans. The 1992 reauthorization included a small pilot of income-contingent repayment as part of the direct loan program, which was expanded along with that program the following year.
The problem of consumer abuses by for-profit colleges was a major topic in hearings leading to the bipartisan 1992 reauthorization bill. In the wake of skyrocketing student loan defaults, an 18-month investigation by the Senate Permanent Subcommittee on Investigations had concluded in 1991 that the student loan program, "particularly as it relates to proprietary schools, is riddled with fraud, waste and abuse."Abuses in Federal Student Aid Programs (Washington, DC: U.S. Congress, 1991), Permanent Subcommittee on Investigations of the Committee on Governmental Affairs, United States Senate. https://files.eric.ed.gov/fulltext/ED332631.pdf The HEA bill adopted a number of reforms that contributed to the closure of hundreds of schools. The changes included cutting off aid at schools with high default rates, prohibiting the use of commission-based sales agents in recruiting and limiting HEA funding to no more than 85 percent of any for-profit college's revenue. The 1992 bill also included a system of triggers for state-level reviews of colleges by State Postsecondary Review Entities or SPREs. At the urging of nonprofit colleges the SPRE provisions were repealed in 1995 by the newly elected Republican Congress.
Changes in 1998 The Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) was first authorized under the Higher Education Amendments of 1998. Also in the amendments of 1998 is the Aid Elimination Provision, which prevents students with drug charges from receiving federal aid for colleges and universities. This is where question 31 on the FAFSA forms originates. The question asks whether the student has ever been convicted of a drug crime while receiving federal financial aid. This statutory provision was upheld by the United States Court of Appeals for the Eighth Circuit in the face of a constitutional challenge by the ACLU in the case of Students for Sensible Drug Policy v. Spellings.
The amendments also included a provision [HEA Section 487(a)(23)] requiring universities to make a good faith effort to encourage voter registration of students on their campuses. This requirement applies only to institutions located in states that require voter registration prior to election day and do not allow registration on the day of the election. Institutions receive registration forms from the state after requesting them at least 120 days prior to the voter registration deadline and must make them "widely available" to students.
Changes in 2003 In 2003, much of the Higher Education Act was set to expire. As a result, a number of minority groups united in asking for certain changes. Calling themselves the Alliance for Equity in Higher Education, this group was made up of "the American Indian Higher Education Consortium, the Hispanic Association of Colleges and Universities, and the National Association for Equal Opportunity in Higher Education, an advocacy group for historically black colleges and universities, [and they] presented their joint recommendations for the reauthorization of the Higher Education Act." The Alliance aimed to help minority students enter fields where they seemed to be underrepresented and to give incentives to minorities to enter these programs. These incentives included more lenience on loan collection and full government funding for minority education. The Alliance also called for the government to create funding for students in graduate programs of universities serving the minority population.
Even though the Alliance's request to change the Higher Education Act was heard, significant parts were denied. In 2003, the request for increasing the amount offered in a Pell Grant, to better cover a student's expenses, was denied by the Senate. Still, other issues were corrected. There was a section passed by the House that did allow more funds to go to institutions in order to keep them current, and a grace period for colleges asking for more loans was eliminated. So, if more funding were needed, minority institutions would not have to wait.
Also in 2003, the Higher Education Relief Opportunities For Students Act (sometimes referred to as the HEROES Act) was passed, enabling the Secretary of Education to grant waivers or relief to recipients of federal student loan programs under the HEA "in connection with a war or other military operation or national emergency."
2007 College Cost Reduction and Access Act A budget reconciliation bill signed into law in September 2007 included significant changes to HEA financial aid programs. In addition to increasing the maximum Pell Grant award and reducing interest rates on subsidized student loans, a new "income-based repayment" option capped loan repayment at 15% of an individual's discretionary income, while a Public Service Loan Forgiveness promised that some borrowers could forgive student loan balances after ten years of repayment. The student aid formula's income protection allowance was increased, and the interest rate on new student loans was changed to fixed rates from the variable rate. The new law also took action to address problematic practices in the lending industry. Most CCRA provisions took effect on October 1, 2007.American Association of University Women. Increasing Access to Higher Education. January 2008. http://www.aauw.org/advocacy/issue_advocacy/actionpages/upload/higherEdAct.pdf
2008 reauthorization
With the changes proposed in 2003, the actual Higher Education Act was not reauthorized. Instead, many of its sections were renewed with little radical change. Numerous extensions have followed, with the most recent extension lasting through August 15, 2008. The Senate passed a HEA reauthorization bill in July 2007, as did the House of Representatives in February 2008.
On August 14, 2008, the Higher Education Opportunity Act (Public Law 110-315) (HEOA) was enacted. It reauthorized the amended version of the Higher Education Act of 1965. This act made major changes in student loan discharges for disabled people. Previously, to qualify for a discharge, a disabled person could have no income. This has been changed to a no "substantial gainful activity" test, which is the same standard used by the Social Security Administration in determining eligibility for Social Security Disability Insurance (SSDI). The changes took effect on July 1, 2010.