Health Care Debate Still Holding Up Student Loan Bill
(December 2009) For some time the conventional wisdom has been the student loan and health care debates are tied together because of a Senate procedural rule known as budget reconciliation. Now that the Senate appears determined to pass the health care legislation through regular order, logic would suggest the path has been cleared to begin work on the student loan bill.

However, as the outcome on health care is far from decided, the full Senate is unlikely to consider the student loan legislation until next year. Rumors are flying around Washington of imminent action on student loan reform legislation, but a bill has yet to be introduced, a markup in the HELP Committee has yet to be announced, and there are very few days left on the legislative calendar.
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Perkins Loan Changes Likely To Be Delayed One Year ED Official Says
(December 2009) Legislation making major changes to the Perkins Loan Program, including creating a new Direct Perkins Program and eliminating the current program, will likely not take effect until July 1, 2011, according to a statement made by Acting Assistant Secretary of Education Dan Madzelan at the ED Office of Federal Student Aid Conference in Nashville this week. It is up to Congress to decide whether or not to approve a change to Perkins and to set the date the change takes effect, a fact Madzelan noted, but he indicated near certainty that there would be a delay.
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Sen. Franken Discusses Perkins at Town Hall Style Meeting
(November 2009) Sen. Al Franken (D-MN) spoke at an event with students, campus administrators, and faculty on the campus of the Minnesota State University Moorhead (MSUM) this week. To begin the event, students spoke of their frustration with student debt levels and Franken followed up by mentioning the Pell Grant increase in the President's plan for federal student aid.

Campus administrators also got the opportunity to ask questions and COHEAO Board Member Larry Rock of Concordia College spoke up with his concerns with the elimination of the in-school interest subsidy and unique loan forgiveness aspects of the Perkins Loan Programs. Franken responded that he agreed with Rock on these issues and would be looking to ensure their inclusion in the student loan reform bill in the Senate.
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House Passes SAFRA
(September 2009) On September 17, the House of Representatives completed debate, voted, and passed HR 3221, the Student Aid and Fiscal Responsibility Act of 2009 by a vote of 253-171. The vote was primarily among party lines, however four Democrats voted against the bill: Rep. Allen Boyd (FL), Rep. Stephanie Herseth-Sandlin (SD), Rep. Paul Kanjorski (PA), and Rep. Mike McMahon (NY). The primary components of the bill include the elimination of the FFEL program, increased spending on Pell Grants, spending on new higher education and Pre-K-12 programs. No substantive changes to the Perkins Loan provisions were made during the full House consideration of the bill yesterday and today. Changes to the Perkins Loan program include an increase in available loan funds, but also the removal of the in-school interest subsidy, of cancellation benefits and the transfer of the administration of loan servicing and collections to the Department of Education as a new version of a direct loan.
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FTC to Delay Implementation of Red Flags Rule
(July 2009). To give creditors and financial institutions more time to review this guidance and develop and implement written Identity Theft Prevention Programs, the FTC will further delay enforcement of the “Red Flags” Rule until November 1, 2009.
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House Committee Passes “Student Aid and Fiscal Responsibility Act”
(July 2009) On July 21, the House Education and Labor Committee considered and passed the “Student Aid and Fiscal Responsibility Act” introduced by Committee Chairman George Miller (D-CA) by a vote of 30-17. Only one amendment involved Perkins Loans, an amendment by Rep. Rob Andrews (D-NJ) that would exempt new Perkins Loan funds from being counted in the 90-10 rule for proprietary schools. The bill makes the dramatic changes to the Perkins Loan program that were described in the summary we sent you this morning.
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Major provisions on H.R. 3221, the “Student Aid and Fiscal Responsibility Act”
(July 2009) On July 21, 2009, the House Education and Labor Committee will consider some of the Obama Administration’s education proposals, which have been introduced as a bill by Committee Chairman George Miller (D-CA).
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Education and Labor Committee Releases Fact Sheet on SAFRA
On July 15, 2009 the House Education and Labor Committee released a Fact Sheet outlining their legislation changing the student loan programs. This legislation will be formally introduced today, at which time we will see details about the Perkins Loan Proposal. That segment was still being discussed yesterday, with concerns having been raised about the in-school interest charges.
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COHEAO Submits Comments on TILA Regulations
(May 2009). The Federal Reserve Board has published new regulations about disclosures, certifications, and practices relating to private education loans under the Truth-in-Lending Act (TILA).

According to the Federal Reserve Board, lenders will be required to disclose certain information about their loans, and federal loans that may be available on three specific occasions, with applications, at the time of the loan approval and at consummation of the loan. The HEOA changes to TILA require the student borrower to obtain a self-certification form from the educational institution, along with certain information about their costs of attendance and financial aid, and submit a signed copy to the lender. The proposed rules allow this form to be paper or electronic, including signatures, and would further allow the institution to transmit the form to the lender (rather than the student).
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COHEAO Submits Testimony for House Education and Labor Committee Hearing on Student Loans
(May 2009). Last week, the House Education and Labor Committees held two hearings directly related to the Obama administration's student loan proposals. Secretary Arne Duncan discussed the administration’s overall education agenda with the Committee on May 20, and a hearing specifically addressing student loan reform, "ncreasing Student Aid through Loan Reform," was on May 21. 2009.
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FTC Announces Three-Month Delay of Enforcement of ‘Red Flags’ Rule
(April 2009) On Thursday, April 30, 2009, the Federal Trade Commission (FTC) announced it will delay the enforcement of the new “Red Flags Rule” until August 1, 2009, to give creditors and financial institutions more time to develop and implement written identity theft prevention programs. For entities that have a low risk of identity theft, such as businesses that know their customers personally, the Commission will soon release a template to help them comply with the law. Today’s announcement does not affect other federal agencies’ enforcement of the original November 1, 2008 compliance deadline for institutions subject to their oversight.
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Perkins Update
(April 2009). COHEAO is continuing to work in Washington on Perkins Loan issues, as well as other issues that affect COHEAO members. This memo is to follow up on the informational memorandum of April 3rd as well as last Friday’s Torch, which had additional information. Please be sure and check the Torch for additional updates as they happen.
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COHEAO Launches Facebook Page
(April 2009) COHEAO recently created and launched a page on Facebook. Facebook is a free-access social networking website that was first aimed at college –age students and has now grown into a networking outlet for students, businesses and worthy causes. The COHEAO page can be viewed by facebook users by searching for “COHEAO”. Included on the page are events, including the Mid-Year conference in Philadelphia as well as general information about COHEAO and the Perkins Loan Program. The page will be updated as necessary.
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House and Senate Pass Budget Resolutions, Staff to Begin Informal Conference Negotiations During Easter Recess
(April, 2009). On April 2, 2009, the House and Senate, on strong party line votes, adopted FY 2010 Budget resolutions. Though the bills differ modestly in spending authority, they both offer President Obama an endorsement of much of his spending and policy plan for the year.
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Information and Perspectives on Proposed Changes to the Perkins Loan Program
(April, 2009). As many of you are aware, the Obama Administration has proposed to create a new Perkins Loan Program. COHEAO would like to provide additional information and perspectives on the proposed changes to Perkins Loans and what the process is for any such changes.
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House and Senate Budget Committees Hold Markups
(March 25, 2009). The House and Senate began marking up the FY2010 budget proposals. Overall, the House and Senate versions of the budget are similar. Both would propose to spend less than the Obama administration in FY2010. For discretionary spending, the Senate budget would spend $525 billion, while the House would propose to spend $533 billion. According to the most recent estimate from the CBO, the Obama budget would result in $540 billion in spending in the next fiscal year. Perkins Loans are not specifically referenced, either the current program or the Administration’s new Perkins proposal. In other words, it will be up to the House and Senate education committees to decide what to do about the proposal at a later date.
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Obama Releases Budget Outline: Includes Modernized Perkins Loan Program
(February, 2009). President Obama released an outline of a budget that includes mention of the Perkins Loan Program. The budget outline says: “The Budget also makes campus-based, low-interest loans more widely available through a new modernized Perkins Loan program, overhauling the inefficient and inequitable current Perkins program.”
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FY09 Appropriations Bill Released
(January 2009). On February 23, Congressman Dave Obey (D-WI), Chairman of the House Appropriations Committee, made steps to finish the FY09 Appropriations. The Committee released the FY09 Omnibus Appropriations bill —a product of behind the scenes negotiations between the House, Senate and White House – which would combine nine annual appropriations bills left over from last year. According to Obey, the bill “works in harmony with the economic recovery package, making investments that address the country’s immediate needs while investing in our long term economic strength.”
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Senate Appropriations Committee supports $61 million Federal Capital Contribution for Perkins Loans
(January 2009).The Senate Appropriations Committee yesterday included as part of its version of the massive economic stimulus bill $61 million as a Perkins Loan Capital Contribution. The Senate’s Committee Report description of the funding reads: “The Committee has also included $61,000,000 for Federal Perkins loans capital contributions. The Federal Perkins loan program supports student loan revolving funds built up with capital contributions to participating institutions.”
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ED Releases CCRAA Final Regulations
(October 2008) On Thursday, October 23, 2008, the Department of Education issued Final Regulations in the Federal Register for the “College Cost Reduction and Access Act of 2008” (CCRAA), PL 110-84, for the FFEL, Direct Loan, and Perkins Loan programs.
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Economic Hardship Deferment
Congress eliminated the 20/220 rule from the HEA and replaced it with the new IBR plan, which the Department believes “will provide assistance to more borrowers with high levels of debt over a much longer period of limited earnings than the economic hardship deferment.”
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HEOA Changes
In addition to the changes necessary to implement provisions of the CCRAA, the final regulations also incorporate certain changes made to the Higher Education Act by the recent Higher Education Opportunity Act (HEOA) (Pub. L. 110–315). All Department regulations for programs authorized under title IV of the HEA are subject to the negotiated rulemaking requirements and the Department is generally required to publish an NPRM and provide the public with an opportunity to comment on proposed regulations prior to issuing final regulations. However, under the Administrative Procedure Act (APA), the agency is not required to conduct “notice-and-comment rulemaking” when it is unnecessary or contrary to the public interest.
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Congress Passes HEA Reauthorization….Finally!
(July 2008). On July 31, 2008 the House of Representatives and the Senate passed, HR 4137, the Higher Education Opportunity Act of 2008 which is the conference report for reauthorization of the Higher Education Act by a vote of 380-49 in the House and 83 – 8 (and 1 voting present) in the Senate. This legislation is a landmark for the Perkins Loan Program, since it demonstrates very strong support for the program in a number of ways.
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Senate and House Appropriations Committees Begin Work on LHHS FY09 Spending Bills
(June 24, 2008). The Senate Labor, HHS, Education Appropriations Subcommittee marked up the appropriations bill for the Department of Education today. The campus-based student aid programs were all level funded with the exception of the Perkins Loans. While Perkins Federal Capital Contributions were not funded, Perkins Loan cancellations received an additional $5.673 million to help with the shortfall. TRIO funds were increased by $10 million and GEAR UP was increased by $5 million. Pell Grants were funded at the same level as the President requested for a maximum award of $4,310 which is a $69 increase over FY2008.
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COHEAO Urges Grassroots Effort to Fund Perkins!
(June 2008). COHEAO needs your help to send letters to Members of Congress asking for funding for the Perkins Loan Program including the Federal Capital Contribution and reimbursements for cancelled loans. Please help in this effort by customizing and faxing or emailing this letter to members of the House and Senate. This is extremely important in order to support advocates in Congress who are working for Perkins Loan funding! We need to seize the chance to get Perkins Loan funding restored.
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COHEAO and NACUBO Survey Reveals Perkins Loan Shortfalls
(May 2008). Recently, the Coalition of Higher Education Assistance Organizations (COHEAO) partnered with the National Association of College and University Business Officers (NACUBO) to survey their membership about a possible shortfall in their Perkins Loan fund.
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ED Changes Rules on FISAP to Allow More Time to Repay Loans to Perkins Funds
(May 2008) In April, the Department of Education issued a Dear Colleague Letter providing information about the Fiscal Operations Report for 2007-08 and Application to Participate for 2009-2010 (FISAP) for the Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant, and Federal Work Study programs.
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COHEAO Hosts Teleconference on Mandatory Assignment Regulations
(May 2008). On May 5, COHEAO hosted a teleconference on the new mandatory assignment regulations and what schools needs to know. Mandatory assignment is expanded by a new Education Department regulation scheduled to take effect July 1, unless the law is changed by Congress.
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COHEAO Submits Comments on HEA Reauthorization Conference
The Senate and House have started to conference the Higher Education Act reauthorization bill (S. 1642 and HR 4137). Last week, COHEAO sent a letter to Capitol Hill urging Members to include the reauthorization of the program in the Conference Report as well as the Perkins Loans Proposals included in H.R. 4137.
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Reps. Bishop and McMorris Rodgers Launch DCL Supporting Perkins
Congressman Tim Bishop (D-NY) and Congresswoman Cathy McMorris-Rodgers (R-WA) are circulating a Dear Colleague request asking House members to sign a letter to Chairman David Obey (D-WI) and Ranking Republican James Walsh (R-NY) of the House Appropriations Subcommittee on Labor, Health and Human Services and Education calling for the funding of the Perkins Loan program in FY 2009-- to put $100 million into the Federal Capital Contribution and fully fund loan cancellations. The letter also rejects the proposal by the Administration to eliminate the program. COHEAO members need to do everything we can to encourage Members of Congress to sign on to this letter. Please help in the effort to get signatures on this letter by calling or emailing the U.S. House!
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House Passes Higher Education Act Reauthorization
Thursday, February 7th, the House of Representatives passed HR 4137, the College Opportunity and Affordability Act of 2007 (Higher Education Act reauthorization) by a vote of 354-58. This legislation is a landmark for the Perkins Loan Program, since it demonstrates very strong support in the House for the program in a number of ways, only four days after the Administration again called for its destruction. COHEAO thanks the House for the strong bi-partisan support shown the Perkins Loan Program.
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President Calls for Elimination of Perkins
Today the President unveiled his budget proposal for FY 2009. The detailed appendix of the President’s FY 2009 budget for the Department of Education and other departments is now on line at: http://www.whitehouse.gov/omb/budget/fy2009/pdf/appendix/edu.pdf
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Congress Passes Fourteenth Extender
(May 2008). The House and Senate passed S. 3035, the fourteenth extension of the Higher Education Act on May 20. The new extender bill is through June 30, 2008 and did not offer further amendments to HEA.
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COHEAO Announces Results of Directors Election
COHEAO recently held elections for several Board of Directors positions. In accordance with COHEAO’s Bylaws, an election is held each year to fill Board of Director positions on a rotating basis. The following positions were up for election: Treasurer, Secretary, Member at Large (three positions).
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House Education And Labor Committee Report Comments on Perkins Loans
Following is the Education and Labor Committee’s explanation of its actions on the Perkins Loan program in its version of the Higher Education Act reauthorization bill, H.R. 4137. The final paragraph refers to mandatory assignment of defaulted loans to the Department.
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House Education and Labor Committee Passes HEA Reauthorization Bill
House Education and Labor Committee Chairman George Miller (D-CA) and Higher Education, Competitiveness, and Lifelong Learning Subcommittee Chairman Rubén Hinojosa (D-TX) introduced legislation to reauthorize the Higher Education Act and the Committee voted unanimously to approve HR 4137, the College Opportunity and Affordability Act of 2007. This bill would make some important improvements to the Perkins Loan program, both keeping it authorized and limiting the ability of the Department to require assignment of defaulted loans.
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Senator Brown Introduces Perkins Loan Forgiveness Legislation for Firefighters
Senator Sherrod Brown (D-OH) introduced legislation that would provide full-time fire fighters student loan forgiveness of their federal Perkins Loans. Brown’s bill, would help communities recruit fire fighters who are proficient in the latest fire protection technologies.
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COHEAO Submits NPRM Response Letter on Perkins Loans Provisions
COHEAO submitted a detailed response to the Department’s Notice of Proposed Rulemaking of June 12, 2007, which contains provisions that would lead to mandatory assignment of defaulted Perkins Loans, define reasonable collection costs and impose a number of new record-keeping requirements on institutions participating in the Perkins Program. The NPRM also sets forth detailed rules on preferred lender lists and of what constitutes an illegal inducement for a FFELP loan.
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Senate Passes Higher Education Amendments of 2007
On Tuesday July 24, 2007, the Senate passed S 1642, the Higher Education Amendments of 2007, which will reauthorize the Higher Education Act. The bill aims to address the rising costs of higher education, reform the student loan system and promotes teacher preparation programs. The House has yet to draft companion legislation. Relative to the Perkins Loan Program, the bill authorizes appropriations with “such sums as may be necessary for FY2008 through FY2012”. The bill also provides for the cancellation of loans for public service. The bill amends current law and adds loan cancellation for full-time faculty members at a Tribal College or University, Librarians (if the Librarian has a master’s degree in Librarian Science and is employed in a Title I eligible school under No Child Left Behind), and full-time speech language therapists with master’s degrees who are working exclusively with schools eligible for Title 1 assistance under No Child Left Behind.
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House Committee Approves Amendment To Fund Perkins FCC
On Wednesday June 13, the House Education and Labor Committee marked up the “College Cost Reduction Act of 2007.” This bill introduced by Chairman George Miller (D-CA), includes a number of provisions that would, according to Miller, “ease the financial burden imposed on students and families by the cost of college, including: tuition assistance for excellent undergraduate students who agree to teach in the nation’s public schools; loan forgiveness for college graduates that go into public service professions; and increased federal loan limits so that students won’t have to rely as heavily on costlier private loans.”
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Letter to House Appropriators asking for funding for the Perkins Loan Program
Attached please find a letter to House Appropriators asking for funding for the Perkins Loan Program including the Perkins Loan Capital Contribution and reimbursements for cancelled loans. Please help in this effort by faxing this letter to members of the Labor, Health and Human Services and Education Subcommittee by Friday, May 18. This is extremely important in order to support advocates in Congress who are working for Perkins Loan funding! We need to seize the chance to get Perkins Loan funding restored.
Click here to view the letter.

COHEAO Submits Proposal to Amend HEA
As the House begins to prepare for the reauthorization of the Higher Education Act, COHEAO has drafted and submitted a proposal on the distribution of collections that the Department makes on defaulted Perkins loans.
Click here to view the letter.

Senators and Representatives Deliver Perkins Dear Colleague Letters
Senators Maria Cantwell (D-WA) and Norm Coleman (R-MN) circulated a Dear Colleague letter asking fellow Senators to sign a letter to Chairman Kent Conrad (D-ND) and Ranking Member Judd Gregg (R-NH) of the Senate Budget Committee in opposition to the Bush Administration’s proposal to eliminate the Perkins Loan Program and in support of funding the Federal Capital Contribution and loan cancellations. The letter was delivered Monday and was a big success with 29 Senators signing the bipartisan letter.
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COHEAO comments on the proposed Military Deferment form
Recently, the Department of Education requested comments on the proposed Military Deferment form for FFEL, Direct Loans and Perkins Loans.
COHEAO sent the attached letter.

COHEAO urges Congress to help low income students who depend on the Perkins Student Loan Program
Continuing its efforts to help low and middle-income students afford a college education, in early January COHEAO urged House and Senate appropriators to fully fund the Perkins Loan Federal Capital Contribution. They also urged them to retain the proposed funding for the Loan Cancellation Fund in the FY2008 Labor-HHS-Education Appropriations bill.
To view the press release, click here. To view the letter, click here.

Congress Will Reject Call for Elimination of Perkins Loans
The 110th Congress is taking office today. One of its first decisions will be how to finish vital business left over from the previous Congress - including funding of education programs.
To view the memo, click here.

Senate Appropriations Committee Funds Cancellations, No FCC
On July 20, the Senate Appropriations Committee marked-up its FY2007 Labor, Health and Human Services and Education appropriations bill. The bill continues the Perkins Loan Program and funds loan cancellations at $65.4 million. Unfortunately, the bill does not fund the Federal Capital Contribution. The bill is not expected to be considered on the Senate floor anytime this summer. The most likely scenario is that it will be debated sometime after the elections in November.

House Appropriations Subcommittee Continues Perkins Loan Program, Funds Loan Cancellations
On June 7, the House Appropriations Subcommittee on Labor, Health and Human Services, and Education (Labor-HHS-Education) marked up their FY2007 appropriations bill. The Subcommittee rejected the President’s proposal to eliminate the Perkins Loan Program and transfer $664 million in Perkins Loan funds during the year to other programs. The bill funds Loan Cancellations at last year’s level – approximately $65.4 million. Unfortunately, the bill again fails to fund the Federal Capital Contribution.