Senate Passes Higher Education Legislation

 

Last week, the Senate rejected expansion of the federal direct student loan program before proceeding to unanimous passage (95-0) of the reauthorization of the Higher Education Act.  Opponents of the expansion of direct student loans argued that it would be important to have a strong private student lending market as well.

 

The four-year reauthorization would: 

• make colleges and universities more accountable for tuition cost increases. The U.S. Department of Education would be required to create a national tuition cost index and to publish annual reports on tuition trends that would include a "watch list" of schools with high increases.
• prevent abuses arising from deals between private lenders and schools, such as revenue-sharing arrangements, gifts, meals, trips, and other perks for college officials paid for by the private lenders.  Private lenders would also be required to supply detailed information to student borrowers regarding repayments and penalties.
• ensure that required monthly loan repayments be limited to 15% of monthly income.
• increase the maximum Pell Grant from $4,310 to $5,400 by year 2011.

Senate HELP Committee Chairman Edward M. Kennedy (D-MA) indicated that he expects the Senate to reach agreement with the House on the reauthorizing legislation.

 

President Bush Invites Congressional Leaders to Discuss Appropriations and Other Matters

 

President Bush, responding to requests from House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, has invited congressional leaders from both parties to The White House to discuss FY 2008 appropriations, energy, healthcare, and other legislative issues. 

 

Meanwhile, hearings were held last week regarding the nomination of former House Budget Committee Chairman Jim Nussle (R-IA) to succeed Michael Portman as the Director of the Office of Management and Budget.  Congress is looking to appropriate about $23 billion more in discretionary spending for FY 2008 than the President wishes, and Mr. Nussle might be key to the negotiations.

 

To date, the House has passed ten of its twelve appropriations bills, including Labor-HHS-Education.  The House is expected to bring the defense and the agriculture appropriations bills to the House floor this week.  The Senate thus far has passed only the Homeland Security appropriations bill.

 

Legislation Introduced to Modernize Unemployment Insurance

 

Last week, Senators Kennedy (D-MA), Snowe (R-Me), Rockefeller (D-WV), Warner (R-VA), and Cantwell (D-WA) introduced a bill, The UI Modernization Act (S. 1871), to encourage states to modernize their unemployment insurance systems.  In their press release, the Senators stated that "the system needs to be updated to better assist today's more highly mobile workforce and long-term unemployed workers left behind by declining industries" and that "only 35% of unemployed workers currently collect unemployment benefits."  The bill would use $7 billion in incentive payments to encourage states to update their UI systems.  It would reward states for (1) removing barriers that block coverage for low-wage and part-time workers; (2) ensuring a more family-friendly UI system; and, (3) helping dislocated workers increase their skills. The bill was referred to the Senate Finance Committee.

 

The House introduced a modernization bill for unemployment insurance in May 2007 (H.R. 2233), which was referred to the House Ways and Means Subcommittee on Income Security and Family Support.

 

For more information, see the Senate HELP Committee's press release at http://help.senate.gov/Maj_press/2007_07_27.pdf  or view the Senate bill (S. 1871) and House bill (H.R. 2233) on the Library of Congress legislative website, http://thomas.loc.gov.