Dear Colleagues,

As we dig deeper into our analysis of Rep. Virgina Foxx’s College Cost Reduction Act (H.R. 6951) that we reported on last week, we are uncovering concerning new details that, if enacted, would have a significant impact on private, nonprofit higher education.

The Foxx legislation is a rewrite of the Higher Education Act that could seriously threaten the future of private, nonprofit colleges and universities. The bill eliminates federal loan programs for parents and graduate students. It also eliminates Supplemental Educational Opportunity Grants and replaces them with a program of performance-based reward payments for institutions (not students) funded through annual institutional payments that disproportionately affect private colleges.

Based on a preliminary analysis conducted by Preston Cooper of The Foundation for Research on Equal Opportunity, the bill would require $3.4 billion in loan cost sharing payments annually from our sector. Based on our own analysis the bill would eliminate more than $16 billion in annual federal student loans and grants to private, nonprofit colleges and universities alone. Here is NAICU’s summary of the provisions contained in the bill.

This would be a radical overhaul of a large segment of the federal student aid program and the entire proposal is heavily weighted toward public colleges over private institutions.

The College Cost Reduction Act will be one of many issues we tackle during our upcoming 2024 Annual Meeting and Advocacy Day (Feb. 4-7). I am grateful that over 400 – and counting – NAICU members will be in Washington to head to Capitol Hill to discuss the impact of this bill and other regulatory and policy issues with their representatives. 

We need all the voices we can muster to ensure that our position is clearly conveyed and heard by Members of Congress. If your schedule permits and you have not registered to attend, I hope you will consider joining your colleagues in Washington for these critical discussions and advocacy efforts.

In addition to Advocacy Day, our Annual Meeting will feature speakers who will touch on these and other key issues facing our institutions. These speakers include Education Secretary Miguel Cardona, NCAA President Charlie Baker, key Congressional and Administration staff, NAICU’s government relations experts, and many others. 

Soundbites

• The Department of Education indicated that it will be updating the Free Application for Federal Student Aid (FAFSA) supporting data tables used in the Student Aid Index (SAI) calculation to account for inflation for the 2024-2025 award year. The Department projects that this update will give students access to an additional $1.8 billion in federal student aid. More information is expected to come from the Department soon on how this update may affect student SAI information delivery to schools.

• In response to the increasing need for mental health support on college campuses, the Department of Education published a request for information soliciting written comments on how to best assist higher education in meeting student needs regarding mental health and/or substance use disorders. Specifically, the Department is seeking information, research, and suggestions on effective supports and potential challenges to help inform its efforts on these issues. Comments are due on or before February 25, and may be submitted via the Federal eRulemaking Portal at regulations.gov.

• The Department of Education started the application process for eligibility determinations and waivers for Title III and Title V institutions for fiscal year 2024. Eligibility information and more can be found on the Department’s website. The Department is hosting two webinars to help institutions interested in applying: Wednesday, January 31 at 3:00 p.m. EST (register) and Friday, February 2 at 2:00 p.m. EST (register). The deadline for applications is February 27, 2024.

• The House Subcommittee on Innovation, Data, and Commerce held a hearing that focused on a new college athletics bill proposed by subcommittee chair Gus Bilirakis’s (R-FL). The bill would preempt state laws by establishing federal rules governing name, image, and likeness (NIL) contracts, provide an antitrust exemption to the National Collegiate Athletics Association, and stipulate that student athletes are not employees of their college or university.

• Last week, the Department of Education announced $4.9 billion in student loan debt relief for 73,600 borrowers as part of their ongoing payment count adjustments to income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). This round of cancellation includes $1.7 billion in forgiveness for 29,700 borrowers enrolled in IDR plans, and $3.2 billion for 43,900 borrowers enrolled in PSLF.

• SURVEY REMINDER: Inside Higher Ed is conducting its annual Survey of College and University Presidents. To ensure that independent higher education is appropriately represented and the views of the sector are accurately characterized, please take a few minutes to complete the survey, which will cover topics such as campus speech, diversity in the wake of the Supreme Court’s decision, the 2024 election and artificial intelligence. The survey is open until Jan. 31, and results will be published in early March. Thank you to those who have already completed the survey.

Today’s Washington Update reports on the $80 billion tax package that leaders in the House and Senate have agreed to and that would shut down new applications for the Employee Retention Tax Credit later this month.