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REAUTHORIZATION AND
THE UPCOMING
PRESIDENTIAL/CONGRESSIONAL
ELECTIONS
Presented by:
Brett Lief
NSLP/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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Overview
• Current State of Play
• Congress
• Administration
• Early Education Views of Presidential Candidates
• A Look at the HEA in the 114th Congress
• The Endnote
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Current State of Play – Congress
247
Republicans
188
Democrats
House of Representatives
Democrats need 30 seat pick-up in 2016 to gain majority.
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Current State of Play – Congress
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.
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Current State of Play – Congress
54
Republicans
44
Democrats
2
Independents
Senate
• Independents caucus with Democrats.
• In 2016, 34 seats up for election: 24 Republican & 10 Democrat
(In 2010 cycle Republicans gained 6 seats.)
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Current State of Play – Congress
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.
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Current State of Play – Congress
• 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.
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Current State of Play – Congress
• Legislative approach
• House – “Bite-sized” pieces
• Senate – “Big Gulp”
• Tough to conference
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Current State of Play – Administration
• 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.
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Early Education Views
of Presidential Candidates
Image courtesy of Market Watch.
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Candidate Stance on Student Loans
Candidate
Quote
Positions
Clinton, Hillary
“Student loans … one of the biggest
problems we have right now in the
country.”
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•
•
•
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.”
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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 Loans
Candidate
Quote
Positions
Bush, Jeb
“University system is moving from
… a provider-driven model to a
consumer-driven one.”
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•
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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.”
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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.’”
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Supportive of refinancing
models and income based
payment plans.
More innovation and move away
from a strictly four-year brickand-mortar option.
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Candidate Stance on Student Loans
Candidate
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.”
•
“Right now, the federal government
is charging six-and-a-half and
seven-and-a-half percent. That’s
kind of high.”
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Fiorina, Carly
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Graham, Lindsey
“If you think Fannie Mae and
Freddie Mac did a good job with
Housing, wait until the government
runs student loans.”
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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.
The government is responsible
for the problem with student loan
debt as it “nationalized” the
industry.
Supports much lower interest
rates.
Absolutely supports student loan
refinancing.
Allow for others to compete for
student loan business.
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Candidate Stance on Student Loans
Candidate
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.”
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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.”
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Supports local control of
education and for-profit colleges.
Kasich, John
“End Washington’s education
micromanagement. Shrink the
Federal education bureaucracy.”
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Consolidate more than 100
programs into four key block
grants.
Supports lower costs, increase
affordability, and reduce student
loan debt.
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Paul, Rand
“I’ve got a better idea-let’s let
college students deduct the cost of
their education over their working
career!”
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Rising cost of college threatens
middle class families.
Students should be able to
refinance their loans and take
advantage of low interest rates.
Higher education cost and loan
debt should be tax deductible.
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Candidate Stance on Student Loans
Candidate
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.
Sources:
•
Bloomberg.com
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Credible.com
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NASFAA.org
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MarketWatch.com
•
Thomas B. Fordham Institute
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A Look at the 114th Congress
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)
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A Look at the 114th Congress
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.
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The Endnote
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.
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QUESTIONS
• 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 Lief
Board Member, NSLP
202-997-1005
brettl@nslp.org
Inceptia.org
Follow us on Twitter | @Inceptia