Opportunity, affordability act has far-reaching changes

By: Rebecca Putterman, Staff Writer

Posted: 11/15/07

In response to the escalating cost of college, the 110th U.S. Congress has made the accessibility of higher education a legislative priority.

The 747-page College Opportunity and Affordability Act, a renewal of the Higher Education Act of 1965, has raised the ire of stakeholders who claim that many of its mandates lack funding and might be too standardized to have a positive impact on unique institutions.

UNC-system officials are among the critics who are concerned about top-down education administration.

"The University of North Carolina is leading a lot of the thoughtful policy," said Kimrey Rhinehardt, UNC-system vice president for federal relations, in reference to already established system tuition and loan policies.

"When you lead, sometimes you get caught or swept up into this across-the-board mandate, and we may see from our vantage point that that's not the right way to do it," she explained.

Opponents cite one of the main tuition provisions as a concern - it would place colleges that hike their tuition past a national average on a watch list, withholding federal funds from states that cut their education budgets.

The watch list is of special concern to the UNC system, since public institutions that have little control over their tuition can be held accountable and be punished.

"If state support were diminished and we had to increase our tuition by even a couple of hundred dollars, we would be put on a tuition watch list," said Karen Regan, director of federal affairs at UNC-Chapel Hill.

"We would be disproportionately affected as public institutions."

The legislation was released Veterans Day weekend, giving lobbyists one day to negotiate such concerns. The markup session on Wednesday was drawn out, and the final version is difficult to foresee.

"There are amendments dealing with the issue of what the penalties would be and who would bear the penalties," said Rebecca Thompson, legislative director at the U.S. Student Association. "What the actual policy will be is yet to be determined."

The bill also puts together a code of conduct to govern the relationships between federal and private lenders and universities, in the wake of scandals involving alleged conflicts of interest harming students.

"Students need to be in the position to make a quick decision with unbiased information," Rhinehardt said, adding that the UNC system already has a lending code of conduct that could be unnecessarily complicated by the legislation.

Minority grants, loan forgiveness for certain careers, Pell Grant maximum increases, and simplification of the Free Application for Federal Student Aid are also included in the act.

"This bill is a comprehensive reauthorization of our nation's higher education programs to ensure that families can encounter an easy-to-navigate and fair higher education system," said Rachel Racusen, spokeswoman for the House Education and Labor Committee, which spearheaded the legislation.

The bill follows several legislative efforts at higher education overhaul, including the September passage of an act that raised the Pell Grant maximum and increased funding to minority-serving institutions.

Rhinehardt said she hopes the latest measure, which she called "the single most important bill that affects higher education," won't be mishandled.

"Our goal is to make sure that students get the best deal possible. We are just disagreeing over how to do that.