News from the
Committee on Education and the Workforce
John Boehner, Chairman

FOR IMMEDIATE RELEASE
July 16, 2002
CONTACTS: Dave Schnittger or
Heather Valentine
Telephone: (202) 225-4527

House Democrat Leaders Block Bill to Expand Access to Higher Education

     WASHINGTON, D.C. - As part of an ongoing election-year effort to disrupt proceedings in the U.S. House of Representatives, House Minority Leader Dick Gephardt (D-MO) today blocked floor passage of a non-controversial, bipartisan higher education bill that would improve access to college for disadvantaged students, bolster support for Hispanic-Serving Institutions, and make other noncontroversial technical improvements to the Higher Education Act. Twenty-seven House Democrats, including Rep. Patsy Mink (D-HI), who played a key role in writing the legislation, broke with Gephardt and joined Republicans in voting "yes" on the measure, which is also strongly backed by the higher education community.

     “House Democrat leaders sent a clear message today: they’d rather help themselves by playing politics than help low-income students by improving college aid programs,” said House Education & the Workforce Committee Chairman John Boehner (R-OH). “This is a non-controversial, bipartisan bill that helps low-income and minority students, eases aid requirements for Hispanic-Serving Institutions, and makes other needed changes to benefit college students and universities.”

     The FED UP bill (H.R. 4866), the product of a year-long Internet based project that collected recommendations from students, educators and others involved with higher education for streamlining federal red tape in student aid programs, was introduced in early June. The bill, which Rep. Buck McKeon (R-CA) assembled in close consultation with House Democrats, is a collection of common-sense, revenue-neutral technical changes to the Higher Education Act.

     Among other things, the FED UP legislation blocked by House Democrat leaders Tuesday:

  • Eases aid requirements for America’s Hispanic-Serving Institutions (HSIs). Allows Hispanic-Serving Institutions (HSIs) to apply for federal HSI grants without waiting two years between applications. This provision compliments President Bush’s FY2003 Budget request, which includes $89.1 million for the Developing Hispanic-Serving Institutions program, an increase of $3.1 million, to expand and enhance support for postsecondary education institutions that serve large percentages of Hispanic students and help to close the gap between Hispanic students and their peers.
  • Makes clear that federal scholarship aid can go to low-income and minority students for law school. Allows the U.S. Department of Education to provide scholarship aid to low-income and minority students to prepare for and attend law school, which is not currently mentioned specifically as an allowable use in the Higher Education Act.
  • Makes clear that home-schooled students can receive federal student aid. Clarifies that home-schooled students are eligible for financial aid for higher education and that schools will not lose their institutional eligibility for granting aid to home-schooled students.
  • Helps students avoid defaulting on their student loans. Removes barriers to students seeking forbearance from lenders on student loan payments by eliminating the requirement that new agreements between lenders and borrowers be in writing (however, lenders must provide notice to borrowers of the terms of any new agreement). “Forbearance” is a process by which a borrower who is having temporary difficulty meeting his or her repayment obligations can contact the lender, explain the situation and obtain some form of relief - possibly in the form of an extension, reduced monthly payments for a period of time, no payments for a short time, or other options. The FED UP change will provide relief to student borrowers to help keep them out of default and make it easier for lenders to react more quickly to students’ needs.

     Democrats and Republicans agreed during the process that controversial items - such as items with significant price tags for which budget offsets have not been found - would not be part of the bill. Democrats claim they wanted to attach a variety of additional provisions to the legislation, but offered no explanation as to how those provisions would be paid for. House Democrats this year did not even offer a budget plan for the upcoming fiscal year.

     Gephardt claims House Democrats were denied the opportunity to modify the legislation. In reality:

  • Democrats were full participants in the FED UP project.
  • Democrats were fully involved in the drafting of the FED UP legislation.
  • Democrats were invited and participated in a press conference introducing the bill. No changes or additions were made to the FED UP bill without the full cooperation and approval of Democrats.
  • At no point during the drafting of the FED UP bill did Democrats indicate a desire to add high cost, non-technical amendments to the bill. If that was their position, it should have been addressed during the bill’s development.
  • There was never any confusion about the non-controversial, budget-neutral foundation of the bill.
  • Staff working on the draft discussed it continually. Higher education groups were completely aware of it as well.
  • In a meeting prior to the bill’s introduction with higher education groups involving both Democrat and Republican staff (House and Senate), that concept was repeated. It was made abundantly clear that if issues within the bill had cost or were deemed to be controversial, they would be removed. If there was any confusion or concern with that, it was never raised.

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