Our CEO Kim Cook shared the National College Attainment Network's (NCAN) thoughts on the proposed bill text released yesterday by the US House of Representatives Committee on Education and Workforce:
The House Committee on Education & the Workforce’s proposed reconciliation bill, set to be marked up today, would overhaul federal
higher education financing and policy, cutting $330 billion in higher education funding over 10 years. This proposal is the opening volley in what will be a lengthy legislative process.
Our initial read is that this proposal embodies significant trade-offs. We are pleased to see that the bill includes $10 billion to address the Pell shortfall and welcome the addition of PROMISE grants to help students from low-income
backgrounds attain college degrees. At the same time, we are concerned about the cuts that are funding these improvements. The proposal increases the number of credits required for students to receive a maximum Pell Grant from 12 to 15 credits per semester under
the current enrollment intensity guidelines, effectively cutting the maximum Pell Grant by $1,479, from $7,395 to $5,916, for those students only registered for 12 credit hours. This change would impact about a quarter of Pell recipients.
While we support initiatives to reduce the time it takes for students to attain a degree, this approach may jeopardize time to completion for students who work part-time or would benefit from taking a less rigorous course load, especially as they adjust
to college. By increasing students’ unmet financial need, this proposal will also drive-up student borrowing for millions.
We are also greatly concerned that the bill does away with subsidized federal loans for undergraduate students, which increase college attainment by ensuring that students can cover their educational expenses and do not have to worry about the interest
accruing on their loans as they pursue a degree.
We hope that during tomorrow’s markup, as the bill advances through the House, and as the Senate develops its proposal, policymakers will address the ways this proposal falls short, especially by maintaining the federal direct subsidized loan program
and the 12-credit hour per term requirement for a maximum Pell Grant.
At NCAN, we will continue to monitor the budget reconciliation process, analyze the House bill proposed today, and provide our members with detailed analysis about its impact on their students.
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