On the heels of the Republican release of their proposal to reauthorize the Higher Education Act, the Democrats released a “discussion draft” yesterday.
Senator Tom Harkin (D-IA), Chair of the Senate education committee, released a draft proposal that will remain open for public comment through August 29. In an outline of the proposal, the Senator put forward the following concepts:
- Increase affordability and reduce college costs for students by creating a state-federal college affordability partnership to increase state investment in higher education and lower the costs of tuition for students.
- Reinstate year-round Pell Grants.
- Eliminate origination fees on federal Direct Loans.
- Support community college and industry partnerships that promote innovation in higher education.
- Expand access to dual enrollment and early college high school programs.
- Strengthen student loan servicing standards through the creation of common-sense consumer protections.
- Streamline repayment plans to create a single income-based repayment option.
- Automatically enroll severely delinquent borrowers into income-based repayment.
- Allow private student loans to be discharged in bankruptcy.
- Reform abuses in the collections process and reduce unfair fees.
- Provide student and policymakers with more meaningful disclosures and accountability metrics for institutions, including loan repayment rates.
- Establish a risk-sharing commission to explore holding low-performing institutions financially responsible for poor student outcomes.
- Protect taxpayers by changing the 90-10 rule for for-profit institutions to 85-15.
- Guarantee that federal education dollars are not used on advertising and marketing.
- Create a student complaint system to better track harmful practices.
- Authorize several programs to reform and improve teacher and school leader preparation.
- Provide notification to middle and high school students of their potential eligibility for federal aid.
- Provide better up-front information and disclosures to prospective students.
- Standardize the financial aid award letter .
- Strengthen entrance and exit loan counseling.