2008 Reauthorization
With the changes proposed in 2003, the actual Higher Education Act was not reauthorized. Instead, many of its sections were renewed, with little radical change. Numerous extensions have followed, with the most recent extension lasting through August 15, 2008. The Senate passed an HEA reauthorization bill in July 2007, as did the House of Representatives in February 2008.
On August 14, 2008, the Higher Education Opportunity Act (Public Law 110-315) (HEOA) was enacted. It reauthorized the amended version of the Higher Education Act of 1965. This act made major changes in student loan discharges for disabled people. Previously, to qualify for a discharge, a disabled person could have no income. This has been changed to a no "substantial gainful activity" test, which is the same standard used by the Social Security Administration in determining eligibility for Social Security Disability Insurance (SSDI). The changes took effect on July 1, 2010.
Additionally, the College Cost Reduction and Access Act (CCRA), a budget reconciliation bill signed into law in September 2007, made significant changes to federal financial aid programs included in HEA. In addition to increasing the maximum Pell grant award and reducing interest rates on subsidized student loans, this bill capped loan repayment at 15 percent of an individual’s discretionary income, raised the income protection allowance, enacted loan forgiveness for public servants in the Direct Loan program, set publicly funded student loans to fixed rates from variable rate loans, and took actions to address problematic practices in the lending industry. Most CCRA provisions took effect on October 1, 2007.
The law for the first time also required post-secondary institutions be more transparent about costs and required the nearly 7,000 post-secondary institutions that receive federal financial aid funds (Title IV) to post net price calculators on their websites as well as security and copyright policies by October 29, 2011.
As defined in HEOA, the net price calculator’s purpose is “…to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. The calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student’s individual net price at a particular institution.”
The law defines "estimated net price" as the difference between an institution’s average total Price of Attendance (the sum of tuition and fees, room and board, books and supplies, and other expenses including personal expenses and transportation for a first-time, full-time undergraduate students who receive aid) and the institution’s median need- and merit-based grant aid awarded.
Elise Miller, program director for the United States Department of Education's Integrated Postsecondary Education Data System (IPEDS), stated the idea behind the requirement: "We just want to break down the myth of sticker price and get beyond it. This is to give students some indication that they will not be paying that full price."
The template was developed based on the suggestions of the IPEDS’ Technical Review Panel (TRP), which met on January 27–28, 2009, and included 58 individuals representing federal and state governments, post-secondary institutions from all sectors, association representatives, and template contractors. Mary Sapp, Ph.D., assistant vice president for planning and institutional research at the University of Miami, served as the panel’s chair. She described the mandate’s goal “to provide prospective and current undergraduate students with some insight into the difference between an institution’s sticker price and the price they will end up paying.”
The TRP faced the difficult challenge of creating one tool that could be used by a wide variety of institutions – from small, for-profit career schools to major research universities – while balancing simplicity for users.
To meet the requirement, post-secondary institutions may choose either a basic template developed by the U.S. Department of Education or an alternate net price calculator that offers at least the minimum elements required by law.
As part of its cost-transparency measures, HEOA of 2008 requires also on the College Navigator Web site a report giving the average institutional net price of attendance for first-time, full-time students who receive financial aid. This also forms the basis for transparency lists; a report on the College Navigator Web site the institutional net price of attendance for Title IV aid recipients by income categories; and for the U.S. Department of Education to develop a multi-year tuition and required-fees calculator for undergraduate programs for the College Navigator Web site.
Read more about this topic: Higher Education Act Of 1965