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August 6, 2018 | Lewis-Burke Associates LLC
A VIEW FROM WASHINGTON

While members of the U.S. House of Representatives have headed home for August recess, U.S. Senators and the Department of Education have been busy.  Developments in the education sphere include President Trump signing into law a reauthorization of the Carl D. Perkins Career and Technical Education Act; an introduction by U.S. House Democrats of the Aim Higher Act, a comprehensive reauthorization of the Higher Education Act; and formal indication by the U.S. Department of Education (ED) to promulgate new regulations on accreditation and other Title IV regulations.  More information on these developments is available below.

Federal Student Aid (FSA), an office within ED, recently announced that beginning this summer, students and parents will be able complete the Free Application for Federal Student Aid (FAFSA) form on a mobile device.  FSA has also noted that they expect to launch a payment card pilot program in October as part of its digital transformation and improved customer experience efforts, what it terms “Next Generation Financial Services Environment.”  Finally, on July 19, President Trump signed an Executive Order to prioritize and expand workforce development.  The order notes, “For too long, our country’s education and job training programs have prepared Americans for the economy of the past.”  The order calls for the establishment of the President’s National Council for the American Worker, which would include the Secretary of Education and other executive agency heads.  The order also establishes the American Workforce Policy Advisory Board, which would include representatives from various sectors including educational institutions.  The Board would provide recommendations to the President to, “encourage the private sector and educational institutions to combat the skills crisis by investing in and increasing demand-driven education, training, and re-training, including through apprenticeships and work-based learning opportunities.”
  
IN THIS ISSUE

CONGRESSIONAL UPDATES AND NEWS
House Democrats Introduce Their Own HEA Bill
Senate Education Committee Holds Hearing on Apprenticeships

ADMINISTRATION AND AGENCY UPDATES AND NEWS
Staffing Continues at Department of Education
ED’s Rewrite of Regulations Kicks into Overdrive
ED Announces Graduate Education, Open Textbooks, Cybersecurity Grants; DOL Announces Higher Ed Apprenticeships Grant
Trump Administration Pushes Fee Increases for Foreign Students' Visas

FACTS AND FIGURES
61 Percent of Adults Believe Higher Education is Going in the Wrong Direction

WHAT WE'RE READING
White House Memorandum for the Heads Of Executive Departments and Agencies
U.S. Department of Treasury Report to the President References Higher Ed Risk-sharing
 
CONGRESSIONAL UPDATES AND NEWS

House Democrats Introduce Their Own HEA Bill
On July 24, House Democrats introduced the Aim Higher Act, a comprehensive reauthorization of the Higher Education Act (HEA).  The bill is a rebuttal of H.R. 4508, the PROSPER Act, which was introduced by Representative Virginia Foxx (R-NC).  H.R. 4508 has struggled to gain support amongst Republican House members and is opposed by Democrats.  The Aim Higher Act is unlikely to attract support from Republicans.  There is little indication that the Senate will produce their own reauthorization bill this year.  With two House partisan messaging bills, and no Senate bill, it is likely that 2018 will pass without an HEA reauthorization.  Below is an overview of Aim Higher proposals, which may serve as a starting point for future reauthorization negotiations.

The Aim Higher Act would:
  • Allow Deferred Action for Childhood Arrival (DACA) students to access Federal student aid.
  • Increase the maximum Pell Grant award by $500 and extend Pell eligibility to 14 semesters.  Students would be able to exhaust full Pell eligibility on graduate studies following completion of a bachelor’s degree.
  • Increase funding for TRIO by $110 million to a total of $1.01 billion and level fund GEAR UP.  The minimum grant amount would also be increased by 20%.
  • Require the development of a secure system that evaluates student-level data by the Department of Education (ED).
  • Require accreditors to focus on two new student achievement outcomes – completion and workforce participation.  ED would also gain the power to veto accreditor-set standards it deems are too low.
  • Change the 90/10 rule to 85/15 and close loopholes in the current rule that allow for-profit institutions to rely on funding from other Federal programs (such as GI Bill) without penalty.
  • Expand the Public Service Loan Forgiveness (PSLF) program to include individuals who work for Veteran Service Organizations and farmers.
  • Increase authorization levels of Title VI International Education programs to $125 million – a $60 million increase.
 Sources and Additional Information:
 
Senate Education Committee Holds Hearing on Apprenticeships
The U.S. Senate Committee Health, Education, Labor, and Pensions held a hearing on modernizing apprenticeships.  Members during the hearing noted the need for more skilled workers and the differences between the current federal Registered Apprenticeship system and the Trump Administration’s proposal to establish the Industry-Recognized Apprenticeship Program.  Witnesses discussed the importance of having alignment between the education system and the business community.  During the hearing, Senator Tim Kaine (D-VA) noted, “We're going to reauthorize Higher Education Act, we ought to be focused in that act on making career and technical education every bit as much valued as a college degree.”  

Sources and Additional Information:

ADMINISTRATION AND AGENCY UPDATES AND NEWS
 
Staffing Continues at Department of Education
The U.S. Senate confirmed two Department of Education nominees this past month.  Scott Stump, who previously was assistant provost at the Colorado Community College System, will serve as Assistant Secretary for Career, Technical and Adult Education at the Department.  James Blew, who had previous roles at the Walton Family Foundation and other education advocacy organizations, will serve as Assistant Secretary for Planning, Evaluation and Policy Development.

Sources and Additional Information:

ED’s Rewrite of Regulations Kicks into Overdrive
The Department of Education (ED) has been busy in advancing the Trump Administration’s regulatory agenda.  ED is likely to propose the elimination of the “gainful employment” rule in the coming weeks.  This rule, which ensures that graduates of for-profit schools and career programs earn enough money after graduation to pay off student loans, would potentially be replaced by posting program-level outcomes for all institutions on the College Scorecard.  ED also released a proposed rule on “borrower defense to repayment.”  The proposed rule, which governs when defrauded student loan borrowers are entitled to have their federal loans forgiven, sets a higher standard for relief than was available during the Obama administration.

On July 31, ED announced the agency will host public hearings and establish a negotiated rulemaking committee to evaluate regulations under Title IV of the Higher Education Act, including the topics of accreditation, state authorization, distance education, and competency-based education, among other issues.  Committee negotiations are anticipated to begin in January 2019.  ED will also be accepting written comments on the negotiating committee’s agenda through September 14, 2018.  Regulatory issues that ED may propose new regulations for include:
  • The process by which ED intends to recognize accreditation agencies. This would include provisions related to oversight requirements of institutions, institutional mission, educational quality criteria, definition and reporting of job placement rates, and simplifying the recognition and review process.
  • State authorization, particularly as it relates to distance education and program disclosure requirements.
  • The definition of “regular and substantive interaction” and the use of that term in “distance education.”
  • The definition of credit hour.
  • The role of non-institutional providers in providing a portion of an educational program.
  • Institutional eligibility for student aid.
  • The Teacher Education Assistance for College and Higher Education (TEACH) Grant program.
  • Direct assessment programs and competency-based education, particularly as they relate to term-based academic calendars and satisfactory academic progress.
Sources and Additional Information:

ED Announces Graduate Education, Open Textbooks, Cybersecurity Grants; DOL Announces Higher Ed Apprenticeships Grant
On July 30, ED published three notices inviting applications (NIA) for fiscal year (FY) 2018 grant programs: the Graduate Assistance in Areas of National Need (GAANN) grant program, the Open Textbooks Pilot program, and the Pilot Program for Cybersecurity Education Technological Upgrades for Community Colleges.  Applications for all programs are due August 29, 2018.  

The GAANN program provides funding to academic programs and departments to support graduate or professional degree-seeking students with fellowships in one or more specified areas of study.  The topic areas supported by the GAANN program now include Computer and Information Sciences, Rebuilding the Nation’s Infrastructure/Professional Engineering, National Civic Literacy, and Workforce Development.  ED intends to make approximately 74 awards with an estimated average award size of $248,750 for up to 36 months. 

The Open Textbooks Pilot program, conducted under the Fund for the Improvement of Postsecondary Education (FIPSE) program, is a newly created grant program to support projects at institutions that create new open textbooks or expand their use of open textbooks while maintaining or improving instruction and learning outcomes.  ED intends to make approximately one to three awards of $1.5 million to $4.95 million each. 

The Pilot Program for Cybersecurity Education Technological Upgrades for Community Colleges, also conducted under the FIPSE program, will award funding to community colleges for the improvement of technology used in cybersecurity education programming.  ED intends to make up to 10 awards of up to $100,000 each for a period not exceeding two years. 
 
The Department of Labor (DOL) Employment and Training Administration (ETA) recently released a funding opportunity announcement to support developing and expanding apprenticeships by fostering partnerships between higher education and industry.  The grant aims to expand apprenticeships to sectors that often utilize H-1B visas, increase apprenticeship activity among small and medium-sized businesses, and promote a sector-based approach to the large-scale expansion of apprenticeships.  Eligible lead applicants include: a) an institution of higher education representing a consortium of institutions of higher education, or b) a state system of higher education, such as a community college system office or a single state higher educational board.  DOL intends to award between 15 and 30 grants for between $1 million and $12 million each, depending on the number of apprenticeships served, and applications are due on October 16, 2018.
 
Sources and Additional Information:
Trump Administration Pushes Fee Increases for Foreign Students' Visas
The Department of Homeland Security (DHS) recently released a notice of proposed rulemaking that would result in Student and Exchange Visitor Information System (SEVIS) fee increases for student and exchange visas (F, M, and J visas) in fiscal year (FY) 2019.  A proposed new recertification petition fee would also impact institutions.  The increase in fees, which have not changed since 2008, would be set to cover the full cost of services and fund DHS Student and Exchange Visitor Program (SEVP) efforts “to support national security and counter immigration fraud,” provide programmatic enhancements, and increase personnel.  Public comments due on or by September 17, 2018.

Sources and Additional Information:

FACTS AND FIGURES

61 Percent of Adults Believe Higher Education is Going in the Wrong Direction

Source: http://assets.pewresearch.org/wp-content/uploads/var/www/vhosts/cms.pewresearch.org/htdocs/wp-content/blogs.dir/12/files/2018/07/25164824/FT_18.07.26_highered_topline.pdf.
WHAT WE'RE READING
 
White House Memorandum for the Heads Of Executive Departments and Agencies
The following quote is from a memo on FY 2020 Administration Research and Development Budget Priorities.

"Education in science, technology, engineering, and mathematics (STEM), including computer science, will be foundational to preparing America's future workforce, and should be integrated into instruction through application to real world challenges. Agencies should work to ensure the STEM workforce includes all Americans, including those from urban and rural areas as well as underrepresented groups."

Read more at: https://www.whitehouse.gov/wp-content/uploads/2018/07/M-18-22.pdf

U.S. Department of Treasury Report to the President References Higher Ed Risk-sharing
The following quote is from "A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation."

“Treasury supports legislative efforts to implement a risk-sharing program for institutions participating in the federal student loan program based on the amount of principal repaid following five years of payments. Schools whose students have systematically low loan repayment rates should be required to repay small amounts of federal dollars to protect taxpayers’ growing investment in the federal student loan program. Congress should consider how to address schools with systematically low repayment rates but large populations of disadvantaged students.”

Read more at: https://home.treasury.gov/sites/default/files/2018-07/A-Financial-System-that-Creates-Economic-Opportunities---Nonbank-Financi....pdf.
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