Independent GAO Report Underscores

Successful Public, Private Sector Efforts

to Ease Transition of College Students

into Armed Forces During Times of War

Amid Uproar Regarding the Education of Service members,

New Federal Report Details Progress Under HEROES Act

WASHINGTON, D.C. – Republican leaders of the U.S. House Committee on Education & the Workforce today called attention to a new report by the independent Government Accountability Office (GAO) that highlights public and private sector efforts to provide assistance and flexibility to men and women in uniform as they transfer in and out of college during a time of war.  The new report – requested by bipartisan Members of the Committee in June 2005 – details progress made under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003.

The HEROES Act recognizes the difficulties that college students and federal student aid recipients serving on active duty may experience in transitioning in and out of college and repaying their student loans.  Specifically, the law gives the U.S. Secretary of Education the authority to grant waivers to military reservists who have been called up for active duty, relieving them from making federal student loan payments during that time.  The HEROES Act also encourages schools to provide tuition refunds for a servicemember’s incomplete coursework and to ease reapplication and readmission requirements.

“After the last couple days, this report is a breath of fresh air,” said Howard P. “Buck” McKeon (R-CA), Chairman of the House Education & the Workforce Committee.  “The Department of Education, student loan lenders, and colleges and universities have not only implemented HEROES Act policies, but many have gone above and beyond the bare minimum.  The message they’ve sent to our military personnel is clear: we appreciate your service to the nation, and we will do whatever it takes to make your transition in and out of college as easy as possible.”

McKeon continued, “Now let me be clear as well: our sons and daughters in uniform are brave, professional, and worthy of our respect.  As we take the fight to the terrorists who threaten our way of life, this is no time for jokes and certainly no time for inflammatory and bitter statements.”

The GAO study, available online here, examines: (1) how the U.S. Department of Education has implemented the HEROES Act; (2) the policies and practices federal student loan lenders have in place to assist borrowers serving on active duty; and (3) the policies and practices postsecondary schools have to assist students who are on active duty.  Specifically, the GAO report found:

·         The Education Department has made it easier for active duty servicemembers to postpone or suspend student loan payments.  For example, students who leave school for active duty service are treated as still enrolled to ensure they do not have to begin repaying their student loans.  Furthermore, borrowers already repaying their student loans no longer have to provide written documentation of active duty service to suspend repayment for up to one year.

·         Federal student loan lenders have implemented policies and practices to provide relief for borrowers serving on active duty.  For example, lenders provide options that allow borrowers to suspend or postpone repayment of their student loans, often with a single phone call.  One lender offered to forgive $2,500 in loans for servicemembers who have lived or attended college in Pennsylvania.

·         Colleges and universities have provided tuition refunds for students who leave for active duty service prior to the end of an academic term.  When these students return, schools often guarantee their readmission and exempt them from changes to degree requirements.

Rep. John Kline (R-MN), sponsor of the HEROES Act and one of the Committee Members who requested the GAO report, applauded these efforts on behalf of active duty servicemembers.

“I authored the HEROES Act to express our support and commitment for the troops who protect and defend the United States,” said Kline.  “Our men and women in uniform should not be faced with education-related financial or administrative difficulties while they defend our nation.  Fortunately, the GAO report demonstrates that the HEROES Act is working.  Postsecondary institutions are expanding opportunities for loan relief and easing the financial aid process for our veterans.”

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