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House Democrats introduce HEA legislation that would extend Pell grants to short-term programs and increase data transparency

  ·   By Katie Brown,
House Democrats introduce HEA legislation that would extend Pell grants to short-term programs and increase data transparency

On July 24, 2018, House Education and Workforce Committee Ranking Member, Bobby Scott (D-VA), along with several House Democrats, announced the roll-out of the Aim Higher Act (H.R. 6543)—a comprehensive bill that would reauthorize the Higher Education Act (HEA) for the first time since 2008 if signed into the law. According to the bill’s sponsors, H.R. 6543 consists of proposals contained in Aim Higher, the House Democratic legislative campaign launched in May 2017, as well as amendments offered by Committee Democrats during the December 2017 markup of the PROSPER Act (H.R. 4508)—a controversial HEA re-write introduced by House Republicans late last year.

Many of the provisions in the Aim Higher Act embody long-standing priorities of House Democrats—including access to free community college, increased Pell grant funding, strict oversight of proprietary institutions, and the expansion of support services for underserved students, including DACA recipients and foster and homeless youth. The bill has a number of provisions that contradict those contained in the PROSPER Act—demonstrating that House Republicans and Democrats have been unable to build consensus around modernizing higher education policy.

Bipartisan progress on HEA has also stalled in the Senate. Despite a series of promising hearings on higher education reform this year, Senate HELP Committee Chairman Lamar Alexander announced that his Committee will not produce legislation to reauthorize HEA this Congress. Nonetheless, the Aim Higher Act provides insight into the postsecondary priorities of House Democrats—which helps set the stage for HEA reauthorization debate in the 116th Congress.

Key elements of the Aim Higher Act include:

Extending federal financial aid to short-term programs – The Aim Higher Act contains language from the Pell Grant Preservation and Expansion Act—a comprehensive bill introduced by House and Senate Democrats this Congress; which aims to make a number of changes to the funding and accessibility of Pell grants.

This language would extend Pell grants to academic or job training courses that are at least 150 clock hours of instruction time over a period of at least 8 weeks; so long as the program is part of a career pathway, and results in an industry-recognized credential. Under current law, students are only eligible to receive Pell grants if they are enrolled in a program of study that requires 600 clock hours over a minimum of 15 weeks. This long-standing policy makes federal financial aid inaccessible to students who may be looking to upskill through high-quality, short-term programs—an issue that has been consistently raised by National Skills Coalition (NSC).

The PROSPER Act made similar changes to Pell grant eligibility—however, students would only have access to Pell grants if they were enrolled in a program that was at least 300 clock hours of instruction over a minimum of 10 weeks. Additionally, the PROSPER Act lacks important quality assurance provisions—missing opportunities to engage business and industry leaders in the oversight of short-term programs and set clear guidelines for institutions looking to offer these courses.

NSC has long advocated for students attending short-term programs of high quality to have access to Pell grant programs; a concept that Republicans and Democrats have now both supported in various pieces of legislation, including the bipartisan JOBS Act—introduced by Senators Kaine (D-VA) and Portman (R-OH) last year—the PROSPER ACT, and most recently the Aim Higher Act.

Improving postsecondary data transparency – Due to existing legal restrictions on the collection and dissemination of postsecondary data, students, parents and policymakers do not have a full picture of the quality of higher education programs. Currently, postsecondary institutions are required to report information to the Department of Education through multiple surveys rather than sharing consistent student level data; a practice that is both burdensome and ineffective. Additionally, the federal government only requires colleges to report data on students receiving Title IV financial aid—leaving the public without a clear picture of program outcomes.

The Aim Higher Act addresses this issue by overturning the 2008 student unit record ban and requiring the development of a secure system, housed by the Department of Education, that would evaluate program-level data. This language is similar to that of the College Transparency Act—a bipartisan, bicameral bill led by Senators Hatch (R-UT) and Warren (D-MA) and Representatives Polis (D-CO) and Mitchell (R-MI)—that aims to equip students with the data they need to make informed decisions about their futures. NSC supports the College Transparency Act and is encouraged by the inclusion of similar language in the Aim Higher Act.

The PROSPER Act also took steps to increase the transparency of postsecondary education data by mandating the creation of a college dashboard website. While this public-facing website would include valuable, institution-level information such as student to faculty ratio and the median earnings of students who obtained a certificate or degree both in the 5th and 10th years following their graduation, the student unit record ban would be kept in place—meaning no new data would be captured. While the dashboard acknowledges the importance of data transparency, it leaves students and their families without a complete picture of what to expect from various institutions.

Increasing support services for high-need students – National Skills Coalition has been a vocal advocate for support services for adult and other non-traditional students enrolled in higher education. The majority of postsecondary students today have at least one characteristic of a non-traditional student—which can include working full or part-time while attending school, parenting a dependent child, or entering college for the first time after spending years in the workforce.  These students often have different needs than first-time, full-time college students between the ages of 18-23 who are living on campus while attending classes.

To help aid non-traditional students, the Aim Higher Act establishes a $150 million grant program for states to establish or expand initiatives that help vulnerable populations, such as foster and homeless youth, successfully transition to college. Grantees would also be required to award funding to institutions looking to provide wrap around services to these students, such as housing, childcare, and transportation, once they enroll in college.

NSC supported a similar proposal introduced in the Senate this Congress, known as the Gateway to Careers Act. Led by Senator Hassan (D-NH) this measure would support career pathways for nontraditional students through dedicated federal grant funding. The grants, which would be administered by the U.S Department of Education in consultation with the U.S Department of Labor, would be awarded on a competitive basis to institutions that are working in partnership to serve students experiencing barriers to postsecondary access and completion. Career pathways, which combine access to career counseling, direct support services—such as childcare and transportation—and basic skills instruction, lead students to the skills and credentials they need to persist and succeed in today’s economy.

In addition to this new grant program, the Aim Higher Act increases funding for existing student support programs, including:

  • The Child Care Access Means Parents in School Program (CCAMPIS)
    • The Aim Higher Act would increase funding for CCAMPIS, a program that provides campus-based child care services to low-income parents, from $16 million per year to $67 million (a $51 million increase).
    • The PROSPER Act preserved CCAMPIS but did not provide additional funding for the program. 
    • The Federal TRIO Programs (TRIO)
      • TRIO programs are designed to provide services to individuals from disadvantaged backgrounds. TRIO includes eight different programs targeted to assist low-income individuals, first generation college students, and individuals with disabilities—so that they can progress through the academic pipeline from middle school to postbaccalaureate programs. The Aim Higher Act increases funding for TRIO programs by $110 million—which would bring total funding to $1.01 billion.
      • The PROSPER Act cut funding levels for TRIO by $50 million.
      • Federal Supplemental Educational Opportunity Grants (SEOG)
        • SEOG is a federal assistance grant reserved for college students with the greatest need—roughly 81% of students who receive SEOG come from families earning less than $30,000 per year.
        • The Aim Higher Act phases out the current SEOG allocation formula and replaces it with one that would base the amount of funding on the level of unmet need at an institution as well as the percentage of low-income students they enroll; rather than how long the institution has participated in the program. The Aim Higher Act also creates a pilot program that allows institutions to use up to 5% of their FSEOG funds to provide emergency grants to students.
        • Under the PROSPER Act, SEOG would have been eliminated.
        • Federal Work Study (FWS) program
          • The bill would also replace the current FWS grant allocation formula with the one proposed for SEOG—and would include a “bonus allocation” for institutions that have strong outcomes for serving and graduating Pell recipients. The Aim Higher Act would also double funding for FWS.
          • FWS also received an increase in funding under the PROSPER Act, although the current funding formula would stay in place. PROSPER also aimed to give students participating in FWS more flexibility to work in the private sector during their time in school.
          • Pell Grant Program
            • The Aim Higher Act extends financial aid access to those who have historically been unable to qualify for assistance, including undocumented students who are eligible for the Deferred Action for Childhood Arrival (DACA) and individuals who were previously or are currently incarcerated.
            • The bill would also increase the maximum Pell award by $500 each year and permanently index the grants for inflation. Additionally, students would be able to access Pell grants for fourteen semesters instead of the current twelve.


Other notable elements of the Aim Higher Act include:

Establishing a federal-state partnership to finance free community college – One of the hallmarks of the Aim Higher Act is the establishment of a federal-state partnership that would cover the cost of community college for students across the United States. States would be able to opt into a partnership with the federal government, through which they would receive federal funding, so long as they committed to providing all students with two years of community college free of cost—and continued to invest in education to reduce the financial burden on students and families.

The concept of free community college dates back to “America’s College Promise”—a plan announced by President Obama in 2015 that would tuition to community college students who maintain a grade-point average of 2.5 or better, and who graduate within two years. Although America’s College Promise was not supported at the federal level while President Obama was in office, a number of states have continued or adopted their own free tuition programs; including Tennessee, Oregon, Rhode Island and California.

Simplification of the federal student loan system – The Aim Higher Act would provide students with two repayment options for their student loans: a fixed repayment plan, or an income-based repayment plan. Borrowers who are more than 120 days delinquent will automatically be enrolled in an income-based repayment plan.

A step toward Competency Based Education (CBE) – The Aim Higher Act green lights a demonstration project that allows participating CBE programs to request flexibility from some regulatory requirements seen as barriers to implementation. In exchange, annual evaluations of CBE programs are required. An institution’s accrediting agency is also required to set standards specific to CBE.

As of today, the Aim Higher Act has not yet been scored by CBO. National Skills Coalition looks forward to continuing to work with Members of Congress on both sides of the aisle as move closer to enacting higher education legislation that works for today’s students.

Posted In: Adult Basic Education, Career and Technical Education, Federal Funding, Higher Education Access