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President's Report: NCHER Legislative Conference 2019 Political/Policy Landscape

This report discusses the current political and policy landscape in relation to higher education, including the impact of the midterm elections, legislative priorities, and advocacy priorities for the 116th Congress.

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President's Report: NCHER Legislative Conference 2019 Political/Policy Landscape

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  1. President’s Report Presented by: James Bergeron NCHER Legislative Conference February 6, 2019

  2. Political/Policy Landscape Recent mid-term election changed the landscape Divided Congress likely to have few legislative victories – 2019 is key bc of Presidential election New Democratic House majority gearing up for investigations Expanded Senate majority – trying to stay relevant

  3. Political/Policy Landscape (Renamed) House Education and Labor Committee – 28 Ds and 22 Rs, 26 new, 25% larger Generic hearings – first six months More specific hearings on HEA reauthorization – next three months Bipartisan negotiations – Aim Higher Act as base, but unlikely to reach agreement with Republicans

  4. Political/Policy Landscape Democratic Priorities – “non-negotiables”  New Accountability structure for poor performing schools – similar to gainful employment metric  Reform to 90-10 rule Additional federal and state resources (free college) Refinancing of federal/private student loans

  5. Political/Policy Landscape Senate HELP Committee – largely the same as last year, but full plate with healthcare and nominations With Chairman Alexander’s retirement, HEA is his legacy (FAFSA simplification and big ideas) But what role will Education Secretary DeVos play in reauthorization, and will Ranking Member Murray set aside her frustrations to get a bill?

  6. Political/Policy Landscape And more importantly, how will the Presidential candidates influence the process?

  7. NCHER Advocacy Priorities for the 116th Congress

  8. Making Smart Postsecondary Education Decisions Encourage states/institutions to provide face-to-face financial education and counseling services to students and families Strengthen existing entrance and exit counseling Promote the use of 529 plans

  9. Improving Federal Student Aid Programs • Simplify and streamline the myriad of student loan repayment plans • Dramatically reduce the number of questions on the FAFSA • Provide authority to financial aid administrators to lower annual and aggregate student loan limits • Limit the amount parents can borrow under the PLUS Program

  10. Promoting Stability for Federal Student Loan Borrowers Expanding Access to Loan Rehabilitation Provide an alternative rate to LIBOR Allow defaulted borrowers to rehab their student loans a second time, if needed Streamline the transfer of rehabilitated loans

  11. Combatting Debt Relief Scams Support the “Stop Student Debt Relief Scams Act” that would: Restrict access to the Department’s information technology systems Require institutions to provide a warning to borrowers on third-party debt relief companies Prevent improper access to NSLDS

  12. Promoting Greater Consumer Choice Allowing Private Education Loan Rehabilitation Remove preferred lender list restrictions Support the “Transparency in Student Lending Act,” which mandates that Direct Loan borrowers receive accurate disclosures of the costs of their loans Allow “private education lenders” as defined in the Truth-in-Lending Act to offer private loan rehabilitation

  13. Promoting Better Loan Servicing for Borrowers • Develop a student loan servicing system that includes a single portal • Create a Common Manual to set high-quality and strong national servicing standards and protections • Foster the participation of multiple service providers to promote competition

  14. Eliminating Unnecessary Barriers for Federal Student Loan Borrowers • Extend the payment of Account Maintenance Fees • Provide just-in-time reinsurance payments to facilitate cash into the Federal Fund • Remove the 45% cap on recoveries through Federal Consolidation Loans

  15. Leveraging the Expertise of State and Nonprofit Organizations • Provide the Department of Education’s primes with credit for working with small business subcontractors, including state and nonprofit organizations

  16. Promoting Tax-Exempt Financing (non-HEA) Support the “Student Loan Opportunity Act” to update Section 150(d) Clarify IRS guidance on refunding bonds Eliminate the state volume cap on private activity bonds while preserving tax-exempt financing of education loans

  17. Using Technology to Help Struggling Borrowers (non-HEA) Urge the Federal Communications Commission to reconsider its final rules and strike a more appropriate balance between protecting consumers and allowing reasonable and responsible use of dialer technology Support the establishment of a reassigned number database

  18. Issues to Watch in 2019 Next Generation Financial Services Environment Negotiated Rulemaking on Accreditation-Innovation New Rules on Borrower Defense to Repayment, Gainful Employment, Debt Collection (CFPB) Modifications to TCPA – After Courts Rule?

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