For decades it has provided an opportunity for students to go to college who otherwise would not have been able to pay their tuition costs.
Since its passage in 1965, over 50 million students have received assistance under the Higher Education Act, which is currently in the process of Congressional reauthorization.
The Higher Education Act has evolved from a modest $25 million grant program the year after its conception to the multi-billion dollar hodgepodge of grants, loans and work-study opportunities that it is today.
"It's a mystifying process for many families," said Jim Boyle, president of College Parents of America. "Those in most need of information about financial aid are the most likely to not know about it."
Second-year Engineering student Alexander Kelly is one of almost a quarter of University students who receive some sort of financial aid.
An American citizen born in England, Kelly said he was ill-prepared to finance his education without outside funding.
"Personally I was screwed. My family was intending to live in England, so we didn't plan on saving for college," he said. "My parents are broke."
An Assortment of Options
Currently, the Higher Education Act provides many financing alternatives to qualified students who apply for assistance through the Free Application for Federal Student Aid, commonly known as FAFSA.
Federal Pell Grants, given to the neediest students, do not have to be repaid. Because these funds are somewhat limited, individual colleges and universities sometimes provide additional financial aid through the Perkins Loan program.
Although Kelly said his parents could not afford to send him to college on their own, he did not qualify for need-based educational grants.
"My mom bags birdseed four hours a day. She's not exactly bringing in the cash," he said. "Apparently, we have too high of an income to qualify for need-based financial aid."
Those who are not eligible for either service may be eligible to receive Stafford Loans, either through the government or private lenders. In both cases, debts are guaranteed against default by the federal government, which also restricts interest rates to what have been historically generous levels.
Through a private lender, Kelly was able to obtain a student loan that would pay his way through college.
"I'm going to have $40,000 of debt by the time I get out of here," he said.
If these options fail to provide enough support, students can accept work-study offers which allow them to pay for part of their education by working at school.
Kelly's story is similar to that of many students who struggle to afford the rising costs associated with higher education. Over the past year, Congress has enlisted advice from hundreds of interested parties in order to make the system more workable for these students who rely on financial aid.
Although the Higher Education Act, which was last reauthorized in 1998, will expire at the end of the month, a provision in the bill will automatically extend its lifespan for another year while lawmakers develop the new legislation.
Setting Limits
Although the costs of higher education have been rising for decades, loan limits for college freshmen have not significantly changed in over 30 years, according to Boyle.
College Parents of America is one of many groups proposing increases in student loan limits. The implications of raising loan limits are potentially far reaching. Of the approximately 13 million college students in America, over half use loans to finance their education.
Opponents of the proposal cite the recent decline in federal grants in favor of student loans, arguing that increasing the loan limits will lead Congress to appropriate fewer dollars for grants. In 1980, 55 percent of financial aid was provided by grants and 41 percent by loans. In 2001, the numbers nearly are reversed, with 39 percent for grants and 54 percent for loans.
Larry Zaglanziczny, director of Congressional relations for the National Association of Student Financial Aid Administrators, said he disagrees with the argument that increasing student loans would discourage increased grant spending.
"They're wrong on the premise," Zaglanziczny said. "If that were the case, we would have seen greater evidence of it the last few years."
In an effort to address this concern earlier this month, Sen. Edward Kennedy, D-Mass., proposed an amendment to a spending bill that would have raised Pell Grant limits by $450, an increase of over 11 percent. The Senate narrowly defeated the proposal.
Cost Controls
On Sept. 4, two Republican congressmen, Ohio Rep. John Boehner and California Rep. Howard P. "Buck" McKeon, released a report citing out-of-control college costs as the cause of rising tuition.
According to the report, "The College Cost Crisis," tuition at public universities has increased over the past year by an average of 8.4 percent above the Consumer Price Index, which tracks the cost of goods and services in urban environments.
Similarly, over the past 22 years, average tuition has gone up over 200 percent, while the CPI has risen by only 80 percent. This disparity between the cost of tuition and inflation is putting higher education out of reach for many students, according to the report.
McKeon, who chairs the 21st century competitiveness subcommittee, said he will introduce legislation this week which will penalize schools that raise tuition at rates higher than the CPI for three consecutive years.
"We need to come up with a way to solve this problem," McKeon said. "If this continues, many students will be excluded from the opportunity to go to school."
Not everyone supports McKeon's ideas. James Savage, assistant University vice president for research and federal relations, said the CPI is a fundamentally flawed tool for analyzing tuition increases because it does not take into account factors unique to higher education, such as school expansion.
"The CPI does not measure the cost of education," Savage said. "It's an unfair standard."
Tuition Freezes and Thaws
Virginia legislators cited concerns similar to McKeon's nearly a decade ago when they supported tuition caps for the Commonwealth's public universities. From 1994 to 1996, in-state tuition increases were limited to 3 percent.
In 1996, Virginia Gov. George Allen introduced a total tuition freeze which lasted until 2002, when state budget deficits prompted the restriction to be lifted. During that six year period, in-state tuition actually decreased 20 percent following a 1999 mandate by Gov. James S. Gilmore, III.
Savage, who is also a professor in the politics department, said that a lack of government funding combined with an economic downturn was responsible for tuition increases.
"Our tuition increases were a direct result of state budget cuts," he said.
Since the caps have been lifted, the University has raised tuition substantially. Administrators said, however, that tuition rates remain about the same as they would have been without the restriction. According to data provided University Relations, had tuition increases followed the CPI, in-state rates would currently be $77 higher -- a 1.6 percent increase.
The congressional report further reveals that Virginia and Massachusetts were the only states where the average cost of tuition at a four-year institution went down over the past decade, when adjusted for inflation. Virginia's average tuition decreased 10 percent over that period.
Promoting Accountability
Some believe that instead of setting inflationary limits on tuition increases, financial transparency is the best way to control the cost of education. The Career College Association, an organization of institutions that offer vocational programs, has proposed an Institutional Report Card that would make financial information readily available to parents and students.
According to Tammy Zimmer, regulatory analyst for the Career College Association, the report card would contain a comprehensive list of information prepared by each institution.
Schools would not be subject to an actual grading scale under the system. Instead, the program would be intended to better inform students about how their education funds are being spent.
"Students today [have] the same amount of money and are paying more for their education," Zimmer said.
Controversial Policies
In fact, a recent technical adjustment by Department of Education may cause students to pay even more.
Last May, the Department of Education updated its tax tables in order to reflect the most recently available data from the year 2000. Although required to do so by law, the department had not updated the tables in 10 years. The three-year-old tax data, which reflects a much stronger economy than currently exists, was alleged to potentially cause about 85,000 students lose their Pell grants.
Earlier this month, the Senate passed a measure effectively prohibiting the Department of Education from making adjustments to the federal financial aid formula. A similar measure has not yet passed the House.
Other policy questions related to financial aid eligibility also have generated debate in Congress.
The last reauthorization of the Higher Education Act five years ago added a provision disqualifying some students with drug convictions from receiving financial aid.
Other long-standing provisions in the law prohibit illegal aliens from receiving financial aid and require that eligible males register for the draft in order to receive benefits.
Zaglanziczny said, though these values may be socially desirable, he does not think the Higher Education Act is an appropriate place to address them.
While not directly related to the Higher Education Act, the Development, Relief and Education for Alien Minors act, or the DREAM Act, would expand eligibility for federal financial aid to current illegal aliens by allowing students to apply for resident status under certain conditions.
"The DREAM Act would benefit young people who have earned the privilege to remain in the United States," Sen. Dianne Feinstein, D-Ca., said in a press release. "It does not offer amnesty, nor is it an entitlement."
Rosemary Jenks, director of government relations for NumbersUSA, a non-profit immigration reduction organization, said in spite of their sometimes tear-wrenching stories, illegal immigrants are not entitled to be in the country.
"Anytime you give amnesty to people who are here illegally, you encourage more people to come here illegally," Jenks said.
With lawmakers and interest groups promoting so many competing ideas, the fate of many proposals for the Higher Education Act still hangs in the balance.
"I'm not sure Congress is going to accept all of these suggestions," Zaglanziczny said. "We set forth high standards Congress should meet if it is serious about higher education."
Read More
U.Va. Faculty Senate overwhelmingly adopts a no confidence vote in Board of Visitors
By Xander Tilock | 11 hours ago"The Faculty Senate expresses no confidence in the Board of Visitors for not protecting the University and its president from outside interference," the resolution read.
Faculty Senate Executives hear from Rector Sheridan and Vice Rector Wilkinson
By Xander Tilock and Grace Traxler | YesterdayRectors were in attendance for part of Wednesday’s emergency meeting and were asked about the interim president selection process.
Student leaders weigh the future of self-governance after Ryan's departure
By Brendon Bordwine | 2 days agoThe University has a historical tradition of student self-governance, which allows students to take part in decision-making processes.
