On October 15, House Democrats released their proposed comprehensive bill to reauthorize the Higher Education Act. The legislation, titled the “College Affordability Act,” is more than 1,100 pages long. Below you will find some highlights within the bill that are most relevant for CTE stakeholders.
Data Transparency
The proposal includes one of ACTE’s top priorities, which is to strike the student-level unit record data ban, that was implemented in the 2008 reauthorization of the Higher Education Act. This provision would now allow for data to be matched at the federal level to improve reporting on outcomes like graduate earnings, loan repayments, graduation rates and more. The bill incorporates the College Transparency Act (S. 800/ H.R. 1766), virtually verbatim.
Pell Grants
The bill would expand Pell Grant eligibility to certain eligible short-term job training programs offered at institutions of higher education. Short-term Pell has been a top priority of ACTE’s, though the language largely differs from the JOBS Act (S. 839/ H.R. 3497), which ACTE has endorsed. In order for a program to qualify under this proposal, it must fall between 150-600 clock hours over an instructional period of 8-15 weeks; provide training that is aligned with high-skill, high-wage, or in-demand occupations in the area the training is provided; and provide academic content that meet the hiring requirements of potential employers and satisfy educational prerequisite requirements for professional licenses or certifications. There are other additional requirements that restrict participation, including articulation agreements to ensure all credit or noncredit coursework completed can be used to meet certification or degree program requirements; that annual earnings of graduates, no later than six months after graduation, must be greater than the average or median annual earnings paid to people with just high school diplomas; that gainful employment requirements are met; and that programs must be part of a career pathway, among other things. Further, programs are only eligible for three-year periods, where they then need to again receive approval from the Secretary. This is in an attempt to ensure that programs remain relevant to the needs of the local and state economies. Additionally, the bill requires that program data is collected annually and sent to the Secretary, and that within three years after enactment, the Secretary submits a report to Congress on the effectiveness of the programs receiving Pell funding. In another section of the larger bill, it includes additional accountability measures that impact short-term programs by requiring accrediting agencies be “recognized” accreditors by the Secretary.
The bill would also increase the number of semesters that a student can use Pell grants from 12 to 14, and increase the maximum Pell Grant award by $500, which would be $6,695 in Fiscal Year (FY) 2021, and an estimated $8,305 by FY 2029.
Free Community College
The proposal provides access to free community college, which would include both tuition and fees, through partnerships between the federal and state governments. Generally, the federal government would pay 75% of the average resident community college tuition and fees, beginning in the 2021-2022 academic year. Increases in payments for tuition/fees would be allowed, but could not exceed the lesser of the consumer price index or 3%. To receive a grant, community colleges cannot charge eligible students any tuition or fees after receiving payments from federal/state sources. There are additional requirements, like that associate degrees by public institutions in the state be fully transferable and credit the first two years of a related baccalaureate program at public four-year institutions in the state, and a state maintenance of effort. Notably, any leftover funds can be used to, among other things, expand the “scope and capacity of high-quality academic and occupational skills training programs at community colleges.” While funding for the program would still need to go through the appropriations process, the bill authorizes nearly $3.5 billion in funding for Fiscal Year (FY) 2022, which increases to nearly $16.3 billion by FY 2030.
Student Success Fund for Community Colleges
The bill creates a grant program worth $500 million annually for community colleges to largely focus on improving student outcomes, including improvements in transfer and/or completion rates, through evidence-based institutional reforms and innovative practices.
Federal Work-Study
There were two major changes to the Federal Work-Study (FWS) program in this proposal. First, the bill changes the funding structure so that FWS no longer prioritizes institutions based on how long they have been participating in the program. Now, funding will be based on the number of low-income students at the institution and the unmet need of said students. Secondly, the bill creates a “Work-Based Learning Opportunities” pilot grant program, with the goal to align students’ work-study opportunities with local and regional economies. Additionally, this proposal would require the grantees to include career coaching and counseling services to students, and to provide opportunities for students to meet with employers in the fields related to their work-study employment.
New Perkins Funding
The bill would authorize $181 million annually for FYs 2021-2026 to strengthen postsecondary CTE programs.
Student Loans
The bill makes a number of revisions to student loans, including expanding the Public Service Loan Forgiveness program and shortening the total loan forgiveness time for teachers.
Dual Enrollment/ Early College High School
The bill includes “Jumpstart to College Grant Provisions,” which authorizes a competitive grant for six years at $250 million annually for institutions of higher education to partner with local education agencies to support the development of dual enrollment and early college high school programs that primarily serve low-income students.
Democrats on the House Committee on Education and Labor, which has jurisdiction over the bill, also released a number of fact sheets related to the College Affordability Act, which you can find below: