9/9/2005 - Washington, DC - The Senate Health, Education, Labor and Pensions Committee yesterday approved S. 1614 by a 20 to 0 vote. The legislation, which is co-sponsored by Chairman Enzi (R-WY) and Ranking Member Kennedy (D-MA) and is titled the Higher Education Amendments of 2005, not only reauthorizes the Higher Education Act, but also serves as part of the HELP Committees offering to comply with the reconciliation instructions in the Congressional Budget Resolution.
Both Chairman Enzi and Senator Kennedy thanked the members and staff for their hard work and cooperation in coming up with a bi-partisan bill. Chairman Enzi said that the bill, which he indicated was still a work in progress, would make postsecondary education more affordable and accessible. He said the bill contains many provisions that people have been asking for, including a fixed rate interest cap and financial aid simplification.
Senator Kennedy in his oral introductory remarks, stated that while the bill does not represent the legislation he would like to have, it nonetheless is constructive. He pointed specifically to the two new grant programs, the Provisional Grant Assistance Program (ProGAP) and the National SMART Grants, which he said would effectively increase the Pell Grant by $300 per year. He also specifically endorsed the year round Pell Grant authorization. On the issue of 9.5% floor loans, he said the Committee had agreed to differ.
Interestingly, Senate Majority Leader Frist (R-TN), who is a member of Committee, stated that while S. 1614 is a fantastic bill, he wants to work with the Committee to increase funding for National SMART Grants, which support Pell eligible 3rd and 4th year math and science students. He pointed out that strengthening math and science education would lead to improved national defense. While no amendments were offered, Senator Gregg indicated that he was considering an amendment that would refocus the new grant programs on the neediest students (he said this would increase grant aid to these students by $500 per year) and would provide for ratable reductions in the grants if funding is inadequate. He also indicated he had reservations about the fixed interest rate provided in the bill, suggesting that a variable rate might be better (as would a measure to provide consolidation borrowers with a choice of interest rates). Senator Clinton (D-NY) indicated that she had an amendment to eliminate the work penalty for independent students. She said she had withdrawn the amendment and hoped Chairman Enzi would work with her on this issue.
Because of the current uncertainty as to whether and when there will be budget reconciliation, the next step is unclear. All or part of the bill could be reported to the Senate Budget Committee for reconciliation purposes. Otherwise, the next step would be for a full Senate vote. Ultimately, differences between this bill and the House version (HR 609, which has passed the Education and the Workforce Committee and awaits further action) will be ironed out in a House Senate Conference. Unlike S. 1614, the House bill passed the Education and the Workforce Committee on a party line vote. |
