NAICU Washington Update

Introduction by Barbara K. Mistick

January 19, 2024

Dear Colleagues,

I know there are many issues on your plate right now and, if my travels are any indication, I’m sure the FAFSA delay is among the most pressing. However, last week, a new concern arose in the form of a proposed major overhaul of the Higher Education Act. Introduced by Rep. Virginia Foxx (R-NC), chair of the House Committee on Education and the Workforce, the bill is intended to address what she calls “the inflated cost of obtaining a college degree.”

The bill contains several measures that NAICU strongly opposes, including loan limits linked to college cost, the elimination of important Title IV programs, institutional risk sharing, and problematic changes to accreditation.

Our lede story reports on Foxx’s bill and includes a summary of the provisions written by our Government Relations team to give you and your colleagues an overview of the potential impact the bill could have on your campus and our sector. While its prospects in the Senate right now are slim, and there are also some very positive provisions in the bill, many of the more concerning proposals are an indicator of how important it is that you build a positive relationship with your elected officials, so they better understand the important role you play in your community and for your students.

Earlier this week, the House and Senate passed a short-term continuing resolution to extend the first set of spending bills until March 1, and the second set, which includes student aid funding, until March 8. The good news is that Congress will avoid a government shutdown. The bad news is that this extension to March 8 is well beyond the time you and your financial aid administrators need to know what the student aid funding levels will be in order to package aid offers to students.

Couple this with the delays and issues with the new FAFSA and colleges and universities are in an untenable situation.

All of this action in Washington highlights more than ever the importance of joining us in Washington for our 2024 Annual Meeting and Advocacy Day (Feb. 4-7). We’ll have speakers addressing the status of FAFSA and will be working into the program time to provide updates on various emerging regulatory and legislative proposals, all of which are important issues for you to advocate for with your representatives. 

But Advocacy Day takes on an even more important role this year as we work to protect critical federal student aid programs and dollars. Unlike anytime in my tenure at NAICU, vital student aid programs are in jeopardy. Federal Supplemental Educational Opportunity Grants and Federal Work-Study both could face elimination while the Pell Grant could face flat funding. Advocating for these programs will be a priority for our Advocacy Day efforts.

I am pleased to announce that earlier this week Secretary of Education Miguel Cardona accepted my invitation to join us during our Annual Meeting, on Monday, Feb. 5, for a conversation about the Department’s current and future regulatory objectives and its other priorities for 2024. This will be a great opportunity to hear directly from Secretary Cardona about his goals for the Department moving forward.

I hope you can make the time to join your colleagues in Washington!

Soundbites<

  • The National College Attainment Network issued a report detailing the $3.75 billion in potential Pell Grants that went unclaimed by the high school class of 2021 because students did not fill out the FAFSA. The report reinforces the need for low-income students to be aware of the assistance available to them to pursue postsecondary education. The report includes state-by-state analyses that can help organizations further encourage FAFSA completion.
  • Starting in February, the Department of Education will begin providing expedited forgiveness to student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) income-driven repayment plan. Borrowers who originally took out $12,000 or less for college will have their loans automatically forgiven once they reach 10 years of on-time repayment instead of the original 20 or 25 years. For every $1,000 borrowed above $12,000, one extra year of repayment is needed for forgiveness. Borrowers do not need to take any additional action, and the Department is starting an outreach campaign to encourage borrowers to enroll in the SAVE plan in order to qualify.
  • The House passed the Pregnant Students’ Rights Act by vote of 212-207, with all Republicans voting for the bill and all Democrats voting against. The bill requires institutions of higher education to provide information to students about support, resources, and accommodations for pregnant students. In anticipation of House consideration, the White House issued a Statement of Administration Policy opposing the bill because existing civil rights laws already protect pregnant women against discrimination, and because institutions of higher education are already required to provide reasonable accommodations for such students.
  • Inside Higher Ed survey of college presidents. Inside Higher Ed is conducting its annual Survey of College and University Presidents. To ensure that independent higher education is appropriately represented and the views of the sector are accurately characterized, please take a few minutes to complete the survey, which will cover topics such as campus speech, diversity in the wake of the Supreme Court’s decision, the 2024 election and artificial intelligence. The survey is open until Jan. 31, and results will be published in early March. If you have any difficulty, please contact Doug Lederman at doug.lederman@insidehighered.com. Thank you to those who have already completed the survey.

Thank you for your continued advocacy on behalf of independent higher education. I hope to see you in Washington next month!

Regards,

Barbara

Barbara K. Mistick D.B.A.
President, NAICU

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