The continuing resolution-omnibus spending bill, known as
the "cromnibus," has yet to pass into law. With that said, things
seem to be moving at a fairly good pace toward that end, and it is very likely
to be passed before the deadline.
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Remember the government shutdown this time last year?
Republican lawmakers do, and seem to be making a concerted effort to avoid a
repeat of that event.
The funding agreement as it was announced mostly leaves education
spending at last year’s levels, but there are a few changes college students
and student loan borrowers may want to be aware of.
1. The ability to benefit provision returns: This provision
is probably the most significant change in the new education appropriations
bill. Until 2012, students without a high school diploma or GED could still
qualify for federal financial aid by either passing an exam known as an ability
to benefit test or by successfully completing at least six credits in a degree
or certificate program.
Congress eliminated this provision via another
appropriations bill back in 2012. The proposed bill restores the ability to
benefit rule, but limits its use to students enrolled in career pathway
programs at community colleges.
2. Program funding levels see little change: While Pell
Grant advocates were concerned over a proposal that would have used $2 billion
of the current $4 billion Pell program surplus to fund other programs, in the
end only a little more than $300 million changed budgetary lines.
President Barack Obama's First in the World program, which
promotes innovation in higher education, also fell victim to cuts, going from
$75 million to $60 million. Much of that money will be used by the Department
of Education to pay not-for-profit federal loan servicers, while the rest
provides slight increases to several other student aid programs.
The federal work-study program will see an increase of $15
million, while TRIO will grow by only $1.5 million and federal supplemental educational
opportunity grants will remain at their current funding level of $733 million.
While the Pell surplus was pirated a bit, the actual award maximum will
increase for the next academic year as scheduled, from $5,730 to $5,830.
While the bill saw primarily level funding, there was still
room for some "new" programs. Five million dollars were set aside to
fund a program for veterans that hasn’t seen funding in almost five years. The
program provides support for veterans on college campuses. Another $2.5 million
will be used to set up a new program to create a national center for disabled
students.
3. What got left out: What may be most notable about this
appropriations bill is what it didn’t contain. There was some fairly
significant concern going in to this process other programs in addition to Pell
Grants would fall victim to cuts. Subsidized Stafford loans, for example, have
seen cuts within the last several years, leaving eligibility limited to
undergraduate students only and for a limited time frame.
Obama’s recent executive order to expand the Pay As You Earn
repayment plan was also rumored to be on the chopping block, as was the
controversial college ratings system. The Study Loan suspects
this is likely due in part to a Republican desire to avoid the political
consequences of another government shutdown and therefore trying to keep the
controversial proposals to a minimum and making the bill as easy to approve as
possible.
While student loan consumers won’t see many changes from
this bill, many more modifications to federal aid and student loan laws could
be on the horizon. Most higher education wonks feel that 2015 will see a
reauthorization of the Higher Education Act, and perhaps some significant
alterations to higher education and student aid policies.
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