Congress Tackles College Funding

After making education funding a major part of his winning platform in November, President Clinton hopes to enact two major college aid proposals during the first session of the 105th Congress.

Despite the fervor to cut funding for higher education displayed by the 104th Congress, Democrats say the results of the 1996 elections signal a shift in attitudes toward education programs.

Mike Cohen, special assistant to the President for education, says that to a large extent, last November's election was about education.

"The President's educational initiatives are a top priority; we're going to work hard to get them passed," he says.

With almost half its undergraduate students receiving some form of federal financial assistance, the University has a large stake in what happens on Capitol Hill in the coming months, according to David P. Illingworth '71, associate director for financial aid.

"The current proposals would help lots and lots of our families...including those who are not currently receiving aid," Illingworth says.

First, however, the President must bargain with the Republicans who retained control of Congress in last year's election.

The Congress convened last week and expectations are high that progress can be made to make college more affordable for middle class families.

"The climate is completely different than in the 104th Congress.... It's a better working environment," says Colleen O. McGinnis, a legislative assistant in the Student Financial Aid Office of the Department of Education.

The White House wants to continue in the spirit of cooperation with the Republican Congress which brought about welfare and health insurance reform last summer.

"We certainly hope to be able to work with the Republicans on this," Cohen says.

Some Republicans share that sentiment.

"While we plan to closely examine the president's proposals, we're willing to work with him to find common ground," says Ari Fleischer, press secretary for the GOP-controlled House Ways and Means Committee.

Comments from other Republicans on the Hill, though, indicate the President may face an uphill battle.

"Our first order of business, before we consider any new programs, is to see that current funds are being spent appropriately and effectively," says Jon Brandt, press secretary to Rep. Peter Hoekstra (R-Mich.), a member of the House Economic and Educational Opportunities Committee.

In response to Republican calls as recently as last fall to completely overhaul the federal financial aid system, Harvard officials say the University plans to continue to work with other schools to ensure that student funding is maintained.

On the Table

During the campaign, President Clinton proposed several education tax incentives which are mostly aimed at helping middle class families pay for college.

The "Hope Scholarship" would provide $1,500 for each of the first two years of college for students who maintain a B average. The President's stated goal for this program is to make the first years of college as accessible as the four years of high school.

Over the course of six years, the scholarship would cost an estimated $25.1 billion.

Clinton has also proposed a $10,000 annual income tax deduction for tuition payments. Families earning less than $100,000 per year would be eligible unless they already receive the Hope Scholarship.

The Education Department estimates that the program would cost the government $17.8 billion in lost tax revenues over six years.

White House aides say that both programs are paid for in the President's balanced budget plan, which is expected to be released in February.

Besides these two main proposals, the President has also suggested increasing Pell Grant funds and allowing parents to withdraw money from IRAs for college tuition without penalty.

Republicans, however, have not proposed any major higher education assistance programs. A smaller tax incentive being considered by Republicans would allow college graduates to deduct the interest they pay on their student loans.

That deduction, which was removed from the law with the 1986 omnibus tax reform legislation, would cost significantly less than the President's proposals and would assist graduate students who will not benefit from the President's plans.

Harvard's Position

The University has been lobbying heavily on behalf of financial aid funding for the past two years.

"The situation has changed dramatically," says Harvard's Vice President for Government, Community and Public Affairs James H. Rowe III '73. "At the beginning of the last Congress, the House leadership proposed saving $10 billion from student aid funds."

At that time Harvard quickly joined other universities in opposing those cuts. After last year's budget confrontation, funding for college assistance was maintained, Rowe says.

In fact, as the election progressed, both parties became engaged in a bidding war to offer more funds for college financial aid, Rowe says.

As a result, Pell grants grew by 35 percent last year to $850 million, their highest level ever.

With the start of the new year, the climate on financial aid appears more positive, Rowe says.

"The very good news here is that we've come out of the presidential election with a consensus on the importance of education," Rowe says.

The University intends to continue to organize with other colleges and associations to form a united effort in support of college financial assistance, Rowe says.

Additionally, Rowe commends the personal efforts of President Neil L. Rudenstine.

"[Rudenstine] does a lot behind the scenes... often discussing policy with senators like Kennedy, [D. Patrick Moynihan (D-N.Y.)] and Jeffords," Rowe says.

Rowe says Harvard has several overall goals for upcoming legislative action on student financial aid.

First, the University wants to ensure that the most financially underprivileged students are not left behind in the rush to help middle class families.

"Needy students need not be forgotten," Rowe says.

Secondly, the University will lobby hard to support financial aid programs which are campus-based, such as the Pell grant program, Rowe says.

Finally, the University will support efforts to bring about a discussion on the trend away from outright federal grants and toward increased loans, saddling graduates with larger debt loads.

Great Expectations

In contrast to the threats of massive cuts to federal aid to higher education made early in the 104th Congress, those on Capitol Hill say the new legislative atmosphere is more conducive to compromise.

"We share a goal with the President of using the tax code to help pay for students' college costs," Fleischer says.

Republicans, however, are concerned about the logistics of implementing the Hope Scholarship.

Fleischer says some worry that requiring a B average will induce grade inflation at colleges and universities across the country and that verifying academic performance for so many students would pose a logistical nightmare.

"Are students going to be required to send report cards to the IRS?" Fleischer asks.

Those questions and others will be considered when the House Ways and Means Committee convenes hearings in February, Fleischer says. The Ways and Means Committee will share jurisdiction over the President's proposals with the House Economic and Educational Opportunities Committee.

Capitol Hill staffers say that compromises between the Democratic and Republican plans will likely be made in these committees, though the lack of discretionary funding favors new aid programs that rely on tax breaks as opposed to appropriations.

"If there's any new money [for college aid], all indications are that it will come from changes in the tax code," says Nan F. Nixon, Harvard's lobbyist in Washington for tax and education issues.

On the Senate side, hearings will likely be held as well. The Labor and Human Resources Committee, with recently elected Chair James Jeffords (R-Vt.), will share jurisdiction with the Senate Finance Committee.

According to an article in The Chronicle of Higher Education, Jeffords is more moderate than most of his Republican colleagues and is expected to give the President's plans a fair hearing.

These college aid proposals come just as Congress prepares to reauthorize the Higher Education Act (HEA) of 1965, which expires in September. That law authorizes almost all of the college financial assistance the federal government provides, including well-known programs such as Pell Grants and Stafford Loans.

The Democratic leadership in the Senate is expected to sponsor an education bill in late January which would contain the President's college aid proposals, Nixon says.

Stalwarts on the Democratic side, such as Sen. Edward M. Kennedy '54-'56 (D-Mass.), can be counted on to back the President's education initiatives whole-heartedly, according to Kennedy Press Secretary Jim Manley.

Citing statistics that college costs rose by 123 percent from 1980 to 1990, Manley says, "We share President Clinton's goal of making college more accessible and affordable for all students."

"We held the line with student loans in the last Congress, now we're looking forward to passing the President's initiatives," Manley says

The White House wants to continue in the spirit of cooperation with the Republican Congress which brought about welfare and health insurance reform last summer.

"We certainly hope to be able to work with the Republicans on this," Cohen says.

Some Republicans share that sentiment.

"While we plan to closely examine the president's proposals, we're willing to work with him to find common ground," says Ari Fleischer, press secretary for the GOP-controlled House Ways and Means Committee.

Comments from other Republicans on the Hill, though, indicate the President may face an uphill battle.

"Our first order of business, before we consider any new programs, is to see that current funds are being spent appropriately and effectively," says Jon Brandt, press secretary to Rep. Peter Hoekstra (R-Mich.), a member of the House Economic and Educational Opportunities Committee.

In response to Republican calls as recently as last fall to completely overhaul the federal financial aid system, Harvard officials say the University plans to continue to work with other schools to ensure that student funding is maintained.

On the Table

During the campaign, President Clinton proposed several education tax incentives which are mostly aimed at helping middle class families pay for college.

The "Hope Scholarship" would provide $1,500 for each of the first two years of college for students who maintain a B average. The President's stated goal for this program is to make the first years of college as accessible as the four years of high school.

Over the course of six years, the scholarship would cost an estimated $25.1 billion.

Clinton has also proposed a $10,000 annual income tax deduction for tuition payments. Families earning less than $100,000 per year would be eligible unless they already receive the Hope Scholarship.

The Education Department estimates that the program would cost the government $17.8 billion in lost tax revenues over six years.

White House aides say that both programs are paid for in the President's balanced budget plan, which is expected to be released in February.

Besides these two main proposals, the President has also suggested increasing Pell Grant funds and allowing parents to withdraw money from IRAs for college tuition without penalty.

Republicans, however, have not proposed any major higher education assistance programs. A smaller tax incentive being considered by Republicans would allow college graduates to deduct the interest they pay on their student loans.

That deduction, which was removed from the law with the 1986 omnibus tax reform legislation, would cost significantly less than the President's proposals and would assist graduate students who will not benefit from the President's plans.

Harvard's Position

The University has been lobbying heavily on behalf of financial aid funding for the past two years.

"The situation has changed dramatically," says Harvard's Vice President for Government, Community and Public Affairs James H. Rowe III '73. "At the beginning of the last Congress, the House leadership proposed saving $10 billion from student aid funds."

At that time Harvard quickly joined other universities in opposing those cuts. After last year's budget confrontation, funding for college assistance was maintained, Rowe says.

In fact, as the election progressed, both parties became engaged in a bidding war to offer more funds for college financial aid, Rowe says.

As a result, Pell grants grew by 35 percent last year to $850 million, their highest level ever.

With the start of the new year, the climate on financial aid appears more positive, Rowe says.

"The very good news here is that we've come out of the presidential election with a consensus on the importance of education," Rowe says.

The University intends to continue to organize with other colleges and associations to form a united effort in support of college financial assistance, Rowe says.

Additionally, Rowe commends the personal efforts of President Neil L. Rudenstine.

"[Rudenstine] does a lot behind the scenes... often discussing policy with senators like Kennedy, [D. Patrick Moynihan (D-N.Y.)] and Jeffords," Rowe says.

Rowe says Harvard has several overall goals for upcoming legislative action on student financial aid.

First, the University wants to ensure that the most financially underprivileged students are not left behind in the rush to help middle class families.

"Needy students need not be forgotten," Rowe says.

Secondly, the University will lobby hard to support financial aid programs which are campus-based, such as the Pell grant program, Rowe says.

Finally, the University will support efforts to bring about a discussion on the trend away from outright federal grants and toward increased loans, saddling graduates with larger debt loads.

Great Expectations

In contrast to the threats of massive cuts to federal aid to higher education made early in the 104th Congress, those on Capitol Hill say the new legislative atmosphere is more conducive to compromise.

"We share a goal with the President of using the tax code to help pay for students' college costs," Fleischer says.

Republicans, however, are concerned about the logistics of implementing the Hope Scholarship.

Fleischer says some worry that requiring a B average will induce grade inflation at colleges and universities across the country and that verifying academic performance for so many students would pose a logistical nightmare.

"Are students going to be required to send report cards to the IRS?" Fleischer asks.

Those questions and others will be considered when the House Ways and Means Committee convenes hearings in February, Fleischer says. The Ways and Means Committee will share jurisdiction over the President's proposals with the House Economic and Educational Opportunities Committee.

Capitol Hill staffers say that compromises between the Democratic and Republican plans will likely be made in these committees, though the lack of discretionary funding favors new aid programs that rely on tax breaks as opposed to appropriations.

"If there's any new money [for college aid], all indications are that it will come from changes in the tax code," says Nan F. Nixon, Harvard's lobbyist in Washington for tax and education issues.

On the Senate side, hearings will likely be held as well. The Labor and Human Resources Committee, with recently elected Chair James Jeffords (R-Vt.), will share jurisdiction with the Senate Finance Committee.

According to an article in The Chronicle of Higher Education, Jeffords is more moderate than most of his Republican colleagues and is expected to give the President's plans a fair hearing.

These college aid proposals come just as Congress prepares to reauthorize the Higher Education Act (HEA) of 1965, which expires in September. That law authorizes almost all of the college financial assistance the federal government provides, including well-known programs such as Pell Grants and Stafford Loans.

The Democratic leadership in the Senate is expected to sponsor an education bill in late January which would contain the President's college aid proposals, Nixon says.

Stalwarts on the Democratic side, such as Sen. Edward M. Kennedy '54-'56 (D-Mass.), can be counted on to back the President's education initiatives whole-heartedly, according to Kennedy Press Secretary Jim Manley.

Citing statistics that college costs rose by 123 percent from 1980 to 1990, Manley says, "We share President Clinton's goal of making college more accessible and affordable for all students."

"We held the line with student loans in the last Congress, now we're looking forward to passing the President's initiatives," Manley says