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REAUTHORIZATION ANDTHE UPCOMING PRESIDENTIAL/CONGRESSIONAL ELECTIONS
Presented by:
Brett LiefNSLP/Inceptia
NYSFAAA
October 29, 2015
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Which of these doesn’t belong?
50 years ago – 1965• Higher Education Act (HEA) became law.• Kool and the Gang formed.• The Grateful Dead formed.• Jim Murphy honored by NYSFAA for his first 50 years of service.
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• Current State of Play• Congress
• Administration
• Early Education Views of Presidential Candidates
• A Look at the HEA in the 114th Congress
• The Endnote
Overview
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Democrats need 30 seat pick-up in 2016 to gain majority.
Current State of Play – Congress
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247 Republicans
188 Democrats
House of Representatives
House• Two NY members announced retirements:
• Representative Chris Gibson (R) • Representative Charlie Rangel (D)
Of Note• Representative John Kline (R – MN), Chair of the House
Education & Workforce Committee announces retirement.• If Republicans hold majority, the most likely Chair would be
Representative Virginia Foxx (R – NC).• If Democrats gain majority, Representative Bobby Scott
(D – VA) would most likely become Chair.
Current State of Play – Congress
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• Independents caucus with Democrats.• In 2016, 34 seats up for election: 24 Republican & 10 Democrat
(In 2010 cycle Republicans gained 6 seats.)
Current State of Play – Congress
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54 Republicans 44 Democrats 2 Independents
Senate
Senate• Announced retirements:
• Senator D. Coats (R – IN)• Senator M. Rubio (R – FL) – Running for President• Senator R. Vitter (R – LA) – Running for Governor* • Senator B. Boxer (D – CA) • Senator B. Mikulski (D – MD) – Serves on Senate HELP
Committee• Senator H. Reid (D – NV) – Democratic Leader
*Election runoff November 21, 2015.
Current State of Play – Congress
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• Challenges for Higher Education Act Passage in the113th Session of Congress.
• Election of Speaker of the House.• First Items First:
• 2013 Sequestration expires.• Consideration of increase in debt ceiling.• Adopt continuing Budget Resolution.• Consider Budget and Reconciliation. • Hearings, hearings, hearings.
• Presidential Election Platforms:• One party will not support HEA provisions that are in the
other party’s platform.
Current State of Play – Congress
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• Legislative approach• House – “Bite-sized” pieces• Senate – “Big Gulp”• Tough to conference
Current State of Play – Congress
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• Secretary, Arne Duncan, announces end of calendar year departure.
• Dr. John B. King, Jr., former Chief of State Schools in New York will become Acting Secretary through the end of President Obama’s administration.
Typically, toward the end of a second term of an Administration political appointees will be looking for next opportunities. Also, with less legislative Congressional activity, Dear Colleague Letters have been known to increase.
Current State of Play – Administration
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Early Education Viewsof Presidential Candidates
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Image courtesy of Market Watch.
Candidate Stance on Student LoansCandidate Quote Positions
Clinton, Hillary “Student loans … one of the biggest problems we have right now in the country.”
• Promised to prioritize student loan debt.
• Refinance debt so it becomes more affordable.
• Proposed cutting loan interest rates, making loan refinancing an option, and creating a single income-based repayment option for borrowers.
• Supports President Obama’s plan for two years of tuition-free community college.
O’Malley, Martin “It’s outrageous that you can buy a home for a lower interest rate than you can get a student loan.”
• Debt-free college.
Sanders, Bernie “and we must fundamentally restructure our student loan program.”
• Make four-year public college tuition-free.
• Allowing students to refinance their loans and eliminating federal profits on loans.
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Candidate Stance on Student LoansCandidate Quote Positions
Bush, Jeb “University system is moving from … a provider-driven model to a consumer-driven one.”
• Universities should be more transparent about how many of they graduates are finding jobs so that potential students can make smarter decisions.
• Supports the Tennessee Community College plan.
• Technology could help bring down the cost of college.
Carson, Ben “Many people get into financial strife because they don’t understand the importance of work … There’s nothing wrong with working a few years before going to school.”
• Free Community College is only free “if no one has to pay for it.”
Christie, Chris “[Universities] continually bring things up and just think ‘Oh well [the students] will just borrow the money.’”
• Supportive of refinancing models and income based payment plans.
• More innovation and move away from a strictly four-year brick-and-mortar option.
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Candidate Stance on Student LoansCandidate Quote Positions
Cruz, Ted “took over $100,000 in school loans, loans I suspect a lot of ya’ll can relate to, loans that I’ll point out I just paid off a few years ago.”
• Understands burden of student loan debt.
• Economic growth is critical if we want this generation to be able to pay off their loans and develop the skills to live the American dream.
Fiorina, Carly “Right now, the federal government is charging six-and-a-half and seven-and-a-half percent. That’s kind of high.”
• The government is responsible for the problem with student loan debt as it “nationalized” the industry.
• Supports much lower interest rates.
Graham, Lindsey “If you think Fannie Mae and Freddie Mac did a good job with Housing, wait until the government runs student loans.”
• Absolutely supports student loan refinancing.
• Allow for others to compete for student loan business.
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Candidate Stance on Student LoansCandidate Quote Positions
Huckabee, Mike “It is very difficult for a lot of people to get to college and more importantly to get a job when they get out.”
• Rising cost of college threatens middle class families.
• Students should be able to refinance their loans and take advantage of low interest rates.
Jindal, Bobby “We need to break up the government’s student loan monopoly and provide more competition so that you can chose where to borrow, and have different and better payment options.”
• Supports local control of education and for-profit colleges.
Kasich, John “End Washington’s education micromanagement. Shrink the Federal education bureaucracy.”
• Consolidate more than 100 programs into four key block grants.
• Supports lower costs, increase affordability, and reduce student loan debt.
Paul, Rand “I’ve got a better idea-let’s let college students deduct the cost of their education over their working career!”
• Higher education cost and loan debt should be tax deductible.
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Candidate Stance on Student LoansCandidate Quote Positions
Santorum, Rick “In addition to ensuring primary and secondary schools are equipped for success, equally committed to insuring access to higher education.”
• Supports increased funding for the Pell Grant program.
Trump, Donald “I think it’s terrible that one of the only profit centers we have is student loans.”
• Create jobs so people earn enough to repay their education debt.
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Sources:• Bloomberg.com• Credible.com• NASFAA.org• MarketWatch.com• Thomas B. Fordham Institute
Election Results• Presidential
• Complete turnover of Administration• Transition/confirmation processes
• 1,200 – 1,400 positions require confirmation.• Approximately 60 fall under the Senate HELP Committee.• This process can take 90 days or more.
• First 100 day agenda• Budget and other financial overhang (AKA: Unfinished
business)
A Look at the 114th Congress
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Election Results• Congressional
• Election of Speaker and all other leadership positions. (House)• Majority leader and other leadership. (Senate)• Determination of Committee and Subcommittee Chairs.• Determination of Committee size and ratio between
majority/minority members.• Leadership determines overall priorities.• Budget Reconciliations typically occur in the first year of
a new Congress/Administration.
A Look at the 114th Congress
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Prognostication• Sincere attempts will be undertaken in the House and
Senate to pass a Higher Education bill. • While each House might pass their own bill, the chances
are slim that an HEA will become law this session.• It is probable that programs will be extended either
through a “clean” standalone bill or through one of the budget processes.
The Endnote
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QUESTIONS
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• Only 376 days until the 2016 elections.• 63 days until New Year’s Eve.• 21 days Congress is scheduled to be in session before the
end of the calendar year.
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Brett LiefBoard Member, NSLP
202-997-1005
Inceptia.org
Follow us on Twitter | @Inceptia
