Key Legislation

The Higher Education Act (HEA) is up for reauthorization in 2014 and controls much of the way the student loan system works in the United States. Although Congress has passed extraneous legislation, HEA is still the “law of the land” when it comes to college financing. The reauthorization of HEA in 2014 is expected to focus on changes in “college accreditation system”, and a discussion of Pell Grant Spending.

The Smarter Borrowing Act (Senate Bill 546 - introduced by Thomas Harkin) is aimed at providing a more comprehensive college financial aid system for students. As it currently stands, it aims to increase the amount of financial counselling, inform students on the time left that they are eligible for Pell Grants, and other improvements to the financial aid program. It is currently in the Senate Health, Education, Labor, and Pensions Committee. The Smarter Borrowing Act:

“Requires the entrance counseling that [colleges] provide to first-time student loan borrowers to: (1) be provided through interactive programs that test the borrower's understanding of the terms and conditions of the loan, using simple and understandable language and clear formatting; and (2) be provided in person or online.”

These pieces of legislation are only the tip of the iceberg. According to www.GovTrack.us as of April 23, 2014, there are 275 bills in circulation pertaining to college costs and student aid, 242 of which are in committee. The number of bills can only be expected to rise as more and more students enroll in colleges in the United States.