Introduction by Barbara K. Mistick

One of the highlights of President Biden’s FY 2024 budget request, released yesterday, is the proposed $820 increase to the maximum Pell Grant award. This significant increase, $500 of which would come from discretionary funding and $320 from mandatory funding, reinforces the president’s commitment to doubling the maximum award by 2029.

While the budget proposal includes important increases in other student aid programs, it would also provide funding for a federal free community college initiative (see our story below for more information). More details are expected to be released from the administration next week, which will provide greater insight into program costs and assumptions.

The release of the president’s budget kicks off the budget season in Washington both on Capitol Hill and among advocates. We are working with our numerous coalitions to ensure the federal student aid programs receive the funding they deserve and we remain focused on our own efforts to double Pell.

The pace of regulatory change continues to also occupy our policy work at NAICU. The Department of Education held listening sessions this week to gather feedback from stakeholders about the bundled services exception to the ban on incentive compensation for recruitment services.

During the sessions, consumer advocates harshly criticized online program management (OPM) companies for abusive practices and called for the elimination of the 2011 guidance that permitted the bundled services exception and allowed OPMs to flourish. In contrast, other speakers advocated for preserving the current exception, noting that many OPMs play an important role in the higher education ecosystem by promoting innovation and access via the online programs they provide.

The Biden Administration is expected to make modifications to the incentive compensation guidance and/or regulations in the coming months.

REMINDER: NAICU is hosting a webinar (Register) this afternoon from 1:00-2:00 p.m. EST with Deputy Under Secretary Ben Miller to discuss the objectives, priorities, and implications of the Department’s new personal liability guidance. The guidance would give the Department the authority to hold private college leaders (including executive staff and board members) personally liable for federal losses of student aid funds.

Soundbites

• While the launch of the Department of Veterans Affairs’ (VA) new enrollment management platform for GI Bill education benefits, Enrollment Manager, was mostly smooth, it did experience a few hiccups regarding logins. Going forward, all enrollment certifications must be submitted through the new platform, rather than the now-defunct VA-ONCE. For more information, the VA is sending regular updates directly to School Certifying Officials and posting regular status updates on its Post-9/11 GI Bill Facebook page.
   
• The U.S. Citizenship and Immigration Services (USCIS) recently announced the expansion of premium processing and online filing for certain international students wishing to study in the U.S. Those who would be covered under this expansion include: 1) F-1 students seeking Optional Practical Training (OPT); and 2) F-1 students seeking science, technology, engineering, and mathematics (STEM) OPT extensions who have a pending Form I-765, Application for Employment Authorization and wish to request a premium processing upgrade. Online filing of Form I-907, Request for Premium Processing Service, is now also available to F-1 students in these categories. USCIS will continue to accept the latest paper version of this form by mail.

 

"I was so excited when I heard about the possibility that the Pell grant could be doubled! I am a first-generation college student who comes from a small town and a large family with limited income, so the biggest barrier for me to cross when coming to college is financial. When the First-Generation Vikings held the #DoublePell event, I not only signed the advocacy letter, but I went out and brought my friends back to sign it too! I hope that our legislators hear our desire and need for more funding for higher education.”

Grand View University (IA) student during a Double Pell advocacy event held on campus earlier this year.  More than 200 Grand View students, faculty, and staff, including President Rachelle Keck, signed a letter supporting doubling the Pell Grant maximum award.

Finally, I’d like to thank High Point University (NC) President Nido Qubein for hosting me on his PBS show Side by Side.  We had a wonderful conversation talking about the importance of higher education in the United States.  I had such a warm welcome and nice visit at High Point and was able to see all the tremendous work happening on campus.

For more information, please contact:
Barbara K. Mistick, D.M.