Higher Education Act Reauthorization: Status, Reforms, and Impact on Students & Institutions

Table of Contents#

1. What Is the Higher Education Act (HEA)?
2. Current Status of HEA Reauthorization
3. Key Proposed Reforms to Watch 3.1 Addressing Student Debt and Affordability 3.2 Advancing Equity and Access 3.3 Strengthening Institutional Accountability 3.4 Adapting to Post-Pandemic Higher Education Trends
4. Stakeholder Perspectives
5. What Reauthorization Means for Students, Institutions, and Taxpayers
6. Next Steps and Timeline
7. Conclusion
8. References

---

1. What Is the Higher Education Act (HEA)?#

The HEA is a federal law that governs most federal support for postsecondary education. Its core goals are to:

• Expand access to higher education for low-income, first-generation, and underrepresented students.
• Provide financial aid to make college affordable.
• Establish accountability measures to ensure colleges use federal funds responsibly.

Key programs authorized by the HEA include:

• Pell Grants: Need-based grants for low-income undergraduate students (no repayment required).
• Federal Work-Study: Part-time jobs for students to earn money for education expenses.
• Direct Student Loans: Low-interest loans for students and parents, including Stafford Loans and PLUS Loans.
• TRIO and GEAR UP: Outreach programs to support first-generation and low-income students through college preparation, enrollment, and completion.
• Minority-Serving Institution (MSI) Grants: Funding for Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), Tribal Colleges and Universities (TCUs), and other minority-focused schools.

Reauthorization allows Congress to update these programs, add new initiatives, and adjust rules to reflect current challenges.

2. Current Status of HEA Reauthorization#

The HEA’s last full reauthorization was the Higher Education Opportunity Act of 2008. Since then, Congress has failed to pass a comprehensive reauthorization bill, relying instead on temporary extensions (continuing resolutions) to keep HEA programs running.

Recent efforts include:

• 2019: The House passed the College Affordability Act, which proposed expanding Pell Grants, simplifying the FAFSA, and strengthening accountability for for-profit colleges. However, the Senate did not take action, and the bill died.
• 2021–2022: The Biden administration included HEA-related reforms (like expanding Pell Grants and debt relief) in its Build Back Better agenda, but the legislation stalled in the Senate.
• 2023–2024: The House Committee on Education and the Workforce has held multiple hearings on reauthorization and released draft bills focused on affordability, equity, and accountability. The Senate Health, Education, Labor, and Pensions (HELP) Committee has also begun drafting legislation, with a focus on student success and institutional transparency.

As of early 2024, most HEA programs are operating under a temporary extension set to expire on September 30, 2024. Without a full reauthorization, programs could face funding cuts, uncertainty, or outdated rules that fail to address current needs.

3. Key Proposed Reforms to Watch#

Policymakers from both parties have put forward overlapping and competing proposals for HEA reform. Below are the most impactful areas of focus:

3.1 Addressing Student Debt and Affordability#

Student debt is one of the top priorities for reauthorization. Proposed reforms include:

• Expanding Pell Grants: Increasing the maximum Pell Grant amount (currently $7,395 for 2023–2024) and making grants eligible for short-term career and technical education (CTE) programs (under 15 weeks) that lead to in-demand jobs.
• Simplifying Financial Aid: Building on the 2024 FAFSA overhaul (which reduced the number of questions from 108 to 36), proposals aim to make aid applications even more accessible for low-income students and automatically qualify more students for maximum Pell Grants based on tax data.
• Permanent Income-Driven Repayment (IDR): Making the Biden administration’s SAVE plan (which caps monthly payments at 5% of discretionary income and forgives remaining debt after 10–20 years) a permanent part of federal policy.
• Capping Loan Interest Rates: Limiting the interest rates on federal student loans to prevent borrowers from accruing excessive debt over time.

3.2 Advancing Equity and Access#

Reauthorization proposals seek to close long-standing equity gaps for marginalized students:

• Increasing Funding for MSIs: Doubling or tripling federal grants to HBCUs, HSIs, TCUs, and other minority-serving institutions to support infrastructure, faculty development, and student success programs.
• Expanding College Access Programs: Boosting funding for TRIO and GEAR UP to reach more first-generation and low-income students, with a focus on rural and urban underserved communities.
• Addressing Campus Sexual Assault: Updating the Clery Act (which requires colleges to report campus crime data) to strengthen protections for survivors, improve transparency, and hold institutions accountable for mishandling cases.
• Equity in Online Learning: Ensuring online programs meet quality standards and that students in fully online programs have equal access to federal aid and support services (like tutoring and mental health counseling).

3.3 Strengthening Institutional Accountability#

Many proposals aim to hold colleges responsible for student outcomes and prevent misuse of federal funds:

• Expanding the College Scorecard: Adding more metrics to the U.S. Department of Education’s College Scorecard, such as median earnings by program, graduation rates for transfer students, and loan repayment rates for specific majors.
• Penalizing Underperforming Institutions: Cutting off federal aid to colleges that consistently have low graduation rates, high student loan default rates, or fail to prepare students for in-demand jobs. For-profit colleges would face stricter rules to prevent predatory practices (like misleading job placement claims).
• Protecting Student Borrowers: Creating a “student bill of rights” that ensures borrowers have clear information about loan terms, repayment options, and recourse if their college closes or engages in fraudulent practices.

3.4 Adapting to Post-Pandemic Higher Education Trends#

The COVID-19 pandemic accelerated changes in higher education, and proposals aim to make these shifts permanent:

• Permanent Online Aid Eligibility: Maintaining the ability for students to access federal aid for fully online courses (a temporary rule during the pandemic that is now being proposed as permanent).
• Mental Health Support: Funding campus mental health services to address the rising demand for counseling and support among students, especially those from marginalized backgrounds.
• CTE and Workforce Alignment: Increasing funding for CTE programs that partner with local employers to train students for high-demand jobs in fields like healthcare, technology, and manufacturing.

4. Stakeholder Perspectives#

Reauthorization has sparked debate among key stakeholders:

• Students and Advocacy Groups: Organizations like the Institute for College Access & Success (TICAS) and Young Invincibles prioritize expanding Pell Grants, permanent debt relief, and stronger accountability for predatory colleges.
• Colleges and Universities: MSIs advocate for increased funding to address historical underinvestment, while traditional four-year colleges push for flexible accountability measures that don’t penalize small or rural institutions. For-profit colleges oppose strict oversight and eligibility rules.
• Taxpayers and Fiscal Conservatives: Some groups argue that expanding federal aid could increase the national debt and call for reducing federal spending on higher education, shifting more responsibility to states and institutions.
• The Biden Administration: The White House has emphasized equity, affordability, and student debt relief as core priorities for reauthorization.

5. What Reauthorization Means for Students, Institutions, and Taxpayers#

The outcome of HEA reauthorization will have far-reaching impacts:

• Students: A comprehensive bill could reduce the cost of college, simplify financial aid applications, and provide more support for success (like mental health services and career counseling). For low-income and marginalized students, expanded Pell Grants and MSI funding could open doors to higher education that were previously closed.
• Institutions: MSIs would receive much-needed resources to improve infrastructure and student outcomes, while all colleges would face clearer accountability standards. Online programs would gain permanent access to federal aid, allowing them to expand their reach.
• Taxpayers: Stricter accountability measures would ensure federal funds are used effectively, reducing the burden of student loan defaults. However, expanding aid programs could increase federal spending, requiring policymakers to balance affordability with fiscal responsibility.

6. Next Steps and Timeline#

The path to reauthorization remains uncertain, but key milestones to watch include:

• Spring 2024: The House and Senate committees are expected to release full draft bills for HEA reauthorization.
• Summer 2024: Committees will hold markup sessions to debate and amend the bills.
• Fall 2024: Congress will need to reconcile House and Senate versions of the bill before the September 30 extension expires.

Bipartisan cooperation will be critical to passing a comprehensive bill, as Democrats and Republicans have differing priorities on issues like debt relief and institutional accountability. If Congress fails to reach an agreement, it will likely pass another temporary extension, delaying long-needed reforms.

7. Conclusion#

The Higher Education Act reauthorization is a once-in-a-decade opportunity to address the most pressing challenges in U.S. higher education: student debt, equity gaps, and institutional accountability. While the path to passage is fraught with political hurdles, the outcome will shape the future of college access and success for millions of students.

If you want to make your voice heard, contact your members of Congress to advocate for reforms that align with your priorities—whether that’s expanding Pell Grants, strengthening accountability for predatory colleges, or investing in mental health support.

---

References#

1. U.S. Department of Education. (2024). Higher Education Act. Retrieved from https://www.ed.gov/highereducation
2. Congressional Research Service. (2023). Higher Education Act Reauthorization: Issues and Proposals. Retrieved from https://crsreports.congress.gov
3. The Institute for College Access & Success (TICAS). (2023). HEA Reauthorization: Priorities for Student Success. Retrieved from https://ticas.org
4. Inside Higher Ed. (2024). House Ed Committee Advances HEA Draft Bills. Retrieved from https://www.insidehighered.com
5. College Board. (2023). HEA Reauthorization: Key Issues for Students. Retrieved from https://collegeboard.org