A Primer on the Higher Education Act (HEA)

A Primer on the Higher Education Act (HEA)
Updated March 25, 2008
Blake Alan Naughton
Analyst in Education Policy
Domestic Social Policy Division



A Primer on the Higher Education Act (HEA)
Summary
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal
government’s major federal student aid programs (Title IV), as well as other
programs which provide institutional aid and support (Titles II, III and V). In
addition, the HEA authorizes services and support to less-advantaged students (select
Title IV programs), and to students pursuing international education and certain
graduate and professional degrees (Titles VI and VII). The programs authorized by
the HEA are administered by the U.S. Department of Education (ED), and made
available an estimated 70% ($94 billion) of all federal, state, and institutional aid
awarded to postsecondary students in 2005-2006 (excluding tax benefits).
The principal objective of the HEA is to expand postsecondary education
opportunity, particularly for low-income individuals, and to increase affordability for
moderate income families as well. The heart of the legislation is its student aid
programs authorized under Title IV, which provide student aid in the form of grants,
loans, and work-study assistance. There are seven titles of the HEA that authorize
numerous programs and provisions designed to provide assistance to postsecondary
students and institutions.
This report provides a brief overview of major provisions of the HEA. It is
organized by title and part of the act. This report will be updated following
reauthorization of the HEA.



ContactMajor Areas of ResponsibilityTelephone
David SmoleStudent loans, campus-based student aid7-0624
programs, and postsecondary education
finance
Blake NaughtonPell grants, need analysis, college cost7-0376
and price, institutional eligibility,
minority-serving institutions, community
colleges, LEAP, graduate education
programs, FIPSE, and general higher
education issues
Jeff KuenziTRIO, GEAR-UP, international7-8645


education, and teacher quality

Contents
In troduction ......................................................1
Overview ........................................................2
Title I: General Provisions...........................................2
Part A: Definitions.............................................2
Part B: General Provisions.......................................3
Part C: Cost of Higher Education.................................3
Part D: Administrative Provisions for Delivery of Student
Financial Assistance........................................4
Title II: Teacher Quality Enhancement.................................4
Part A: Teacher Quality Enhancement Grants for States and Partnerships..4
TEACH Grants............................................4
Part B: Preparing Tomorrow’s Teachers to Use Technology............5
Title III: Institutional Aid............................................5
Part A: Strengthening Institutions.................................5
American Indian Tribally Controlled Colleges and Universities.....6
Alaska Native and Native Hawaiian-Serving Institutions...........6
Part B: Strengthening Historically Black Colleges and Universities.......7
Historically Black Graduate and Professional Institutions..........7
Part C: Endowment Challenge Grant...............................8
Part D: HBCU Capital Financing..................................8
Part E: Minority Science and Engineering Improvement Program ........8
Part F: General Provisions.......................................8
Title IV: Student Assistance.........................................9
Part A: Grants to Students in Attendance at Institutions of
Higher Education..........................................9
Subpart 1: Federal Pell Grants................................9
Subpart 2: Federal Early Outreach and Student Services Programs..10
Subpart 3: Federal Supplemental Educational Opportunity Grants...12
Subpart 4: Leveraging Educational Assistance Partnership
Program ............................................12
Subpart 5: Special Programs for Students Whose Families Are
Engaged in Migrant and Seasonal Farmwork...............12
Subpart 6: Robert C. Byrd Honors Scholarship Program..........12
Subpart 7: Child Care Access Means Parents in School...........13
Part B: Federal Family Education Loan............................13
Subsidized Stafford loans..................................13
Unsubsidized Stafford loans................................13
PLUS loans.............................................13
Consolidation loans.......................................14
Part C: Federal Work-Study Programs............................14
Part D: William D. Ford Federal Direct Loan Program................14
Part E: Federal Perkins Loans...................................14



Part G: General Provisions Relating to Student Assistance Programs....15
Part H: Program Integrity.......................................16
Subpart 1: State Role......................................16
Subpart 2: Accrediting Agency Recognition....................16
Subpart 3: Eligibility and Certification Procedures...............16
Part I: Competitive Loan Auction Pilot Program.....................17
Part J: Strengthening Historically Black Colleges and Universities and
Other Minority-Serving Institutions...........................17
Title V: Developing Institutions.....................................17
Part A: Hispanic-Serving Institutions.............................17
Part B: General Provisions......................................18
Title VI: International Education Programs.............................18
Part A: International and Foreign Language Studies..................18
Part B: Business and International Education Programs...............19
Part C: Institute for International Public Policy......................19
Part D: General Provisions......................................19
Title VII: Graduate and Postsecondary Improvement Programs.............19
Part A: Graduate Education Programs.............................19
Part B: Fund for the Improvement of Postsecondary Education.........19
Part C: Urban Community Service...............................20
Part D: Demonstration Projects to Ensure Students with Disabilities
Receive a Quality Higher Education..........................20
Part E: College Access Challenge Program.........................20



A Primer on the Higher Education Act (HEA)
Introduction
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal
government’s major federal student aid programs (Title IV), as well as other
programs which provide institutional aid and support (Titles II, III and V). In
addition, the HEA authorizes services and support to less-advantaged students (select
Title IV programs), and to students pursuing international education and certain
graduate and professional degrees (Titles VI and VII). The programs authorized by
the HEA are administered by the U.S. Department of Education (ED), and made
available an estimated 70% ($94 billion) of all federal, state, and institutional aid
awarded to postsecondary students in 2005-2006 (excluding tax benefits).1
The HEA was last comprehensively reauthorized by the Higher Education
Amendments of 1998 (P.L. 105-244), which expired September 30, 2003. Since the
initial expiration of the authorization, there have been several temporary extensions,2
which authorize the programs and activities of the HEA through March 31, 2008.
Most recently, P.L. 110-198, the Higher Education Extension Act of 2008, extends
the HEA authorization to April 30, 2008.
This report3 provides a brief overview of major provisions of the HEA. It is
organized by title and part of the act. Other CRS reports provide much more detailed4
discussions and analyses of major HEA provisions. This report will be updated
following reauthorization of the HEA.


1 The College Board, Trends in Student Aid 2006.
2 The original termination date for most of the provisions of the HEA was September 30,

2003, which was the original date enacted by the Higher Education Amendments of 1998.


This termination date was extended through FY2004 by the General Education Provisions
Act (GEPA). A series of subsequent measures — P.L. 108-366, P.L. 109-81, P.L. 109-150,
P.L. 109-212. P.L. 109-238, P.L. 109-292, P.L. 110-44, P.L. 110-51, P.L. 110-109, and P.L.

110-198 — have temporarily extended the HEA program and provision authority.


3 This report has been updated from one originally prepared by Charmaine Mercer and
Rebecca R. Skinner.
4 For a list of the key CRS products on Higher Education issues and programs,
see:[http://apps.crs.gov/cli/cli.aspx?PRDS_CLI_IT EM_ID=479&from=3&fromId=5].

Overview
The HEA was initially authorized in 1965 (P.L. 89-329). Since that time,
comprehensive amendment and reauthorization of the HEA has occurred seven
additional times.5 The principal objective of the HEA is to expand postsecondary
education opportunity, particularly for low-income individuals, and to increase
affordability for moderate income families as well. The heart of the legislation is its
student aid programs authorized under Title IV, which provide student aid in the
form of grants, loans, and work-study assistance.
There are seven titles of the HEA that authorize numerous programs and
provisions designed to provide assistance to postsecondary students and institutions.
The seven titles of the HEA are:
!Title I — General Provisions
!Title II — Teacher Quality Enhancement
!Title III — Institutional Aid
!Title IV — Student Assistance
!Title V — Developing Institutions
!Title VI — International Education Programs; and
!Title VII — Graduate and Postsecondary Improvement Programs
Each of these titles and the major programs under each are discussed in greater detail.
Title I: General Provisions
Title I of the HEA includes four parts, which establish the general provisions for
the remainder of the HEA. Many of the provisions affect institutions’ participation
in the Title IV student aid programs.
Part A: Definitions
Title I, Part A of the HEA includes two definitions of an institution of higher
education (IHE). The first definition, contained in Section 101, applies to
institutional participation in non-Title IV programs. The second definition, contained
in Section 102, applies only to institutions participating in Title IV programs. The
Section 102 definition includes all institutions recognized as IHEs under Section 101
and expands the definition of IHEs for Title IV purposes to include for-profit
(proprietary) institutions, postsecondary vocational institutions, and institutions
outside of the United States (i.e., foreign institutions). While Section 102 includes
requirements specific to proprietary institutions, postsecondary vocational
institutions, and foreign institutions, it also includes requirements that all Title IV


5 The Higher Education Amendments of 1968 (P.L. 90-575), Higher Education Amendments
of 1972 (P.L. 92-318), Higher Education Amendments of 1976 (P.L. 94-482), Higher
Education Amendments of 1980 (P.L. 96-374), Higher Education Amendments of 1986
(P.L. 99-498), Higher Education Amendments of 1992 (P.L. 102-325), and Higher
Education Amendments of 1998 (P.L. 105-244).

eligible institutions must meet regarding the course of study offered, student
enrollment, and institutional management. Finally, Section 103 contains other
definitions relevant to the HEA.
Part B: General Provisions
Title I, Part B of the HEA contains several general provisions that address issues
such as anti-discrimination, student speech, recognition of accrediting agencies, and
drug and alcohol abuse on college campuses. More specifically, IHEs receiving
federal funds may not use the funds to conduct a study or project in which the terms
of the contract prohibit an individual from performing the study or project based on
the individual’s race, religion, sex, or national origin. Part B also includes a Sense
of Congress regarding the protection of student speech and association rights. It also
provides the Secretary of Education (Secretary) with waiver authority related to
program eligibility criteria and the circumstances of the outlying areas.6 Part B
authorizes the National Advisory Committee on Institutional Quality and Integrity
(NACIQI), which advises the Secretary on decisions related to recognition of
accrediting agencies. Provisions are also included related to the disclosure of foreign
gifts received by IHEs.
The “Collegiate Initiative to Reduce Binge Drinking and Illegal Alcohol
Consumption” is also included in Part B. The initiative, expressed in the form of a
Sense of the Congress, is intended to change the culture of alcohol consumption on
collegiate campuses. Also included in Part B is a requirement that an IHE must
certify to ED that it has adopted and implemented a program to prevent the use of
illicit drugs and alcohol abuse by students. An institution failing to provide this
certification is not eligible to receive funds or any other form of financial assistance
under any federal program. Part B also authorizes Alcohol and Drug Abuse
Prevention Grants. Finally, Part B includes various provisions to meet long-term
obligations related to previously funded programs supporting the construction of
college housing and academic facilities.
Part C: Cost of Higher Education
Title I, Part C includes provisions focused on collecting data on college costs
and prices. It requires the redesign of postsecondary education data systems to
improve the usefulness and timeliness of the data collected, standard definitions to
be developed for various postsecondary education data elements, a national study of
expenditures at IHEs, and the development of a higher education market basket that
includes items related to the costs of higher education. Part C also authorizes the
National Postsecondary Student Aid Study (NPSAS).7


6 The term outlying areas includes Guam, the Virgin Islands, American Samoa, the
Commonwealth of the Northern Marianas Islands, the freely associated states of the
Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of
Palau.
7 The National Postsecondary Student Aid Study (NPSAS) is a comprehensive nationwide
study designed to determine how students and their families pay for postsecondary
(continued...)

Part D: Administrative Provisions for Delivery of Student
Financial Assistance
Title I, Part D authorizes a performance-based organization (PBO) responsible
for managing the information processing and delivery systems for the student8
assistance programs authorized under HEA Title IV. The PBO is known as the
Office of Federal Student Aid.
Title II: Teacher Quality Enhancement
Title II authorizes grants for improving teacher education programs,
strengthening teacher recruitment efforts, and training prospective teachers. This title
also includes the reporting requirements for states and IHEs regarding the quality of
teacher education programs.
Part A: Teacher Quality Enhancement Grants for States and
Partnerships
Title II, Part A authorizes three competitive grants to improve the quality of K-
12 teacher education — State, Partnership, and Recruitment grants. The
authorization of appropriations provides that appropriated funds be divided as
follows: 45% to State grants; 45% to Partnership grants; and 10% to Recruitment
grants. These grants provide funding to states or to partnerships involving high-need
school districts, higher education schools of education, and higher education schools
of arts and sciences. Competitively awarded state grants support reform of teacher
licensing, strengthening of accountability for high quality teacher preparation, and
recruitment of high quality teachers for high-need schools. Partnership grants, also
awarded competitively, are used to reform teacher preparation programs so they
prepare high quality teachers, provide sustained pre-service clinical experiences to
prospective teachers, and enhance the opportunities for professional development
activities for current teachers. Further, states and partnerships are eligible for
separate competitive grants that support teacher recruitment activities. These grants
may be used for scholarships enabling students to complete teacher training
programs, support services needed to complete postsecondary education, and support
services during the initial three years of teaching.
TEACH Grants. Students preparing for a career in teaching and who agree to
teach for at least four years in a high-poverty school may receive a TEACH Grant of


7 (...continued)
education, and to describe some demographic and other characteristics of those enrolled.
The study is based on a nationally representative sample of students in postsecondary
education institutions, including undergraduate, graduate, and first-professional students.
8 For additional information about the PBO see CRS Report RL32098, The Office of Federal
Student Aid: The Federal Government’s First Performance-Based Organization, by
Charmaine Mercer.

$4,000 for each year of study (prospective mathematics and science teachers may
also receive Bonus TEACH Grants of $500 for each year of study). Recipients who
do not complete their service requirement would be required to repay the amount of
the TEACH Grant as a loan under HEA, Title IV, Part D.9
Part B: Preparing Tomorrow’s Teachers to Use Technology
The Preparing Tomorrow’s Teachers to Use Technology grant program has not
been funded since FY2003 and therefore will not be discussed.
Title III: Institutional Aid
Title III is intended to provide support for less-advantaged institutions serving
students from low-income or racial minority backgrounds. There are six parts
authorizing programs for IHEs that serve select groups of students, including
historically black colleges and universities (HBCUs), Alaska Native and Native
Hawaiian-serving institutions, and tribally controlled colleges and universities
(TCCUs). Additionally, Title III, Part A authorizes funding for less-advantaged
institutions and those serving low-income students.
Part A: Strengthening Institutions
Title III, Part A authorizes development and planning grants for institutions that
serve “needy” students. The grants are intended to assist eligible institutions with
improving their academic quality, institutional management, and fiscal stability. In
order for an institution to be eligible for a Part A grant, at least 50% of the enrolled
degree seeking students must be recipients of need-based financial assistance under
Title IV of the HEA (Federal Perkins Loan, Federal Work Study, Federal Pell Grant,
or Federal Supplemental Educational Opportunity Grant), or the institution’s Pell
Grant recipients must exceed the median percentage for similar institutions receiving
Pell Grants. In addition to serving needy students, the institution’s average
educational and general expenditures must be low in comparison with other
comparable institutions.10 Further, Section 312(b) requires that the institution also
be legally authorized by its state to award baccalaureate degrees or be a junior or
community college (or be the College of the Marshall Islands, the College of
Micronesia/Federated States of Micronesia, and Palau Community College); and be
accredited or pre-accredited by a nationally recognized accreditation association or
agency.


9 The TEACH Grants program was newly added to the HEA by the College Cost Reduction
and Access Act of 2007 (P.L. 110-84).
10 Average educational and general expenditures for 2004-2005 (most recent data available
for comparison purposes) were as follows: $9,320 for two-year public institutions, $20,782
for two-year private institutions, $23,553 for four-year public institutions, and $37,105 for
four-year private institutions. Data were retrieved from [http://www.ed.gov/legislation/
FedRegister/announcements/2007-1/010807c.pdf].

Development grant recipients are authorized to utilize funds for the acquisition
of scientific or laboratory equipment; construction or improvement of instructional
facilities, including the integration of computer technology into institutional facilities
to create smart buildings; faculty exchange and development, and faculty fellowships
for attaining advanced degrees; and establishment or improvement of an endowment
fund (the grant recipient must match the federal share of funds and up to 20% of a
recipient’s grant funds can be utilized for an endowment fund), among other things.
American Indian Tribally Controlled Colleges and Universities. Part
A authorizes competitive grants for colleges and universities that are identified by
Section 2 of the Tribally Controlled College or University Assistance Act of 1978 (25
U.S.C. § 1801) or are included in the Equity in Educational Land Grant Status Act
of 1994 (7 U.S.C. § 301). TCCUs must satisfy the general eligibility requirements
in Section 312(b) however, the grants are intended to provide and expand
opportunities for Native American students.
TCCUs are permitted to carry out similar activities to those authorized for Part
A recipients. However, there are some additional allowable activities specifically
designed for Native American students such as: academic instruction in disciplines
in which the group is underrepresented; establishment or enhancement of a teacher
education program that is designed to prepare individuals to teach in elementary and
secondary schools; and community outreach programs that encourage Native
American students to pursue postsecondary education.
Alaska Native and Native Hawaiian-Serving Institutions. Part A
authorizes grants and assistance to Alaska Native and Native Hawaiian-serving
institutions to enable them to improve and expand higher education opportunities
afforded to these two groups. In addition to the general eligibility requirements of
being accredited/pre-accredited and awarded baccalaureate degrees or being a
community college, an institution is eligible for a grant under this section if at least

20% of the undergraduate students are Alaska Native or 10% are Native Hawaiian.


In addition to the percentage requirement, these institutions must also satisfy the
eligibility requirements set forth in Section 312(b) of Title III.
Similar to TCCUs, Alaska Native and Native Hawaiian institutions are
permitted to undertake some of the activities that are authorized for Part A
institutions, and they are authorized to develop activities that specifically address the
needs of Alaska Native and Native Hawaiian students. The delineated activities are
more limited than those identified for Part A institutions, focusing on equipment
acquisition, facilities’ improvement, faculty development, curriculum and instruction,
funds and administrative management, and student support services. Additionally,
Alaska Native and Native Hawaiian institutions cannot utilize any of the grant money
for the establishment of, or to increase, their institutional endowment.



Part B: Strengthening Historically Black Colleges
and Universities
Title III, Part B is the only program in Title III that distributes funds according
to a formula rather than the competitive process.11 These formula grants are for
eligible historically black colleges and universities (HBCUs). To qualify as an
HBCU the institution must have been established prior to 1964 and have as its
principal mission the education of African Americans. HBCUs are not required to
meet many of the eligibility requirements delineated for Part A institutions, except
they must meet the general requirements of being authorized by their state to provide
baccalaureate degrees or be a junior or community college and be either
pre-accredited or accredited by an authorized agency or association.
HBCUs are permitted to carry out activities similar to Part A institutions,
however, there are some authorized activities specifically for African American
students such as academic instruction in disciplines in which the group is
underrepresented. Similar to TCCUs, HBCUs are permitted to establish or enhance
a teacher education program and community outreach programs, however, the
programs and activities do not have to specifically address African Americans.
Historically Black Graduate and Professional Institutions. Part B also
authorizes grants to 18 graduate and professional institutions that significantly
contribute to the number of blacks in the legal, medical, dental, veterinary, math,
engineering and the physical and natural science fields. The federal government
provides each institution $1 million in unmatched funds. Any funds in excess of the
$1 million must be matched on a dollar for dollar basis by the institution. For
example, if an institution requests $1.5 million, it must demonstrate that it is able to
match $250,000 of the federal award with non-federal funds.12
Under this section, institutions are authorized to provide activities similar to
those of undergraduate HBCUs, however, they are also able to provide scholarships
and fellowships to assist students with the enrollment and completion of
postbaccalaureate and professional degrees in the aforementioned disciplines. It is
the sole discretion of the chancellor or president of each institution to determine


11 The formula allocates funds to each institution as follows: 50% of the funds are based
upon the grantees’ number of Pell Grant recipients compared with the number of Pell Grant
recipients at all Part B institutions. Twenty-five percent of the funds are based upon the
number of graduates at the respective institution as a proportion of all graduates from Part
B institutions. The remaining 25% is contingent upon the percentage of the institution’s
graduates who enroll in a graduate or professional degree program in a discipline in which
blacks are underrepresented, compared with the percentage at all Part B institutions. No
institution can receive less than $500,000.
12 Annually, the first $26.6 million appropriated for Section 326 is reserved for 16 of these
institutions (those in the program prior to the 1998 amendments); the next $2 million is
reserved for two institutions added by the 1998 amendments. Any annually appropriated
funds in excess of $28.6 million are awarded among the 18 institutions based on a formula
developed by the Secretary of Education using certain specified factors. (For specific
factors regarding the formula, see HEA, Title III, Section 326(f)(3)).

which professional or graduate school(s) or program(s) at the institution receives the
funds appropriated under this section.
Part C: Endowment Challenge Grant
Endowment Challenge grants have not been funded since FY1995 and therefore
will not be discussed.
Part D: HBCU Capital Financing
Title III, Part D authorizes the HBCU Capital Financing program which
provides federal insurance for bonds issued to support capital financing projects at
HBCUs generally for the repair, renovation, and, in exceptional circumstances, the
construction or acquisition of facilities used for instruction, research, or housing. A
designated bonding authority is charged with raising funds in the bond market; in
turn, these funds are lent to HBCUs. Repayments on these loans are used to make
principal and interest payments on outstanding bonds. Borrowers deposit a portion
of their loans into an escrow account to cover principal and interest payments on
outstanding bonds in the event borrowers are delinquent in repaying their loans.
Federal insurance is provided if this escrow account cannot cover all principal and
interest payments due on outstanding bonds. The total outstanding principal and
unpaid accrued interest on these loans cannot exceed $375 million (of this amount,
$250 million is for private HBCUs and $125 million is for public HBCUs).
Part E: Minority Science and Engineering
Improvement Program
Title III, Part E authorizes the Minority Science and Engineering Improvement
Program which provides grants to predominantly minority institutions13 to improve
science and engineering education and to increase the number of minorities and
women in science and technology. Priority is given to institutions that have not
previously received a grant under this section, prior grantees successful in increasing
the number of women and minorities in science and technology, or projects that
provide balance in one of the following ways: geographical, academic discipline or
project type.
Part F: General Provisions
Title III, Part F contains the general provisions, including waiver authorities that
apply to the administration of these programs, and specifies the various authorization
funding levels for the Title III programs.


13 An institution is deemed a minority higher education institution if its enrollment of one
group of minorities or combination of minorities exceeds 50% of its total enrollment.

Title IV: Student Assistance
Title IV of the HEA contains eight parts which authorize a broad range of
programs and provisions. As the most notable title of the HEA, the programs
authorized under Title IV are the primary sources of federal aid to support
postsecondary education.
Part A: Grants to Students in Attendance
at Institutions of Higher Education
Title IV, Part A authorizes numerous grant programs — funds that do not have
to be repaid — for students who attend eligible Title IV participating institutions.
The largest of these programs is the federal Pell Grant program.
Subpart 1: Federal Pell Grants. The Federal Pell Grant program (Pell
Grants) is the single largest source of grant aid for postsecondary education
attendance funded by the federal government. The Pell Grant program provides
grants to low-income, undergraduate students. The program is often defined as a
quasi-entitlement program because in any year, federal funding is available to ensure
that all eligible students attending eligible institutions receive Pell Grants. To receive
a Pell Grant a student must satisfy the general eligibility criteria for all federal student14
aid programs, and the individual must be enrolled at an eligible IHE for the purpose
of earning a degree or certificate. Generally, the recipient must also be enrolled in15
an undergraduate program. A recipients who attends less than full-time is eligible
for a Pell Grant. However, the grant amount is adjusted in accordance with the
recipient’s enrollment status.
Pell Grants are portable, that is, the grant aid follows students to the eligible
postsecondary education institutions in which they enroll. The size of the grant is
primarily based on the financial resources that students and their families are
expected to contribute toward postsecondary education expenses, and the16
appropriated maximum grant award. The Pell Grant award is considered to be the
foundation of the student aid package because all other federal aid (e.g., federal work
study, student loans) is calculated after the amount of the Pell award has been
determined.


14 For information about the basic federal student aid eligibility criteria and the specific
criteria for the Pell program, see CRS Report RL31668.
15 Students enrolled on at least a half-time basis in a postbaccalaureate program required by
a state for K-12 teacher certification or licensure are also eligible. Such a program cannot
lead to a graduate degree, and the enrolling IHE must not offer baccalaureate degrees in
education.
16 Although the authorizing statute (HEA, Title IV, Section 401(b)(2)) sets the authorized
maximum Pell award for each year, this authorized maximum is overridden by the
appropriations process, which sets the appropriated maximum award. This latter amount
is the one applied in awarding funds to recipients.

Academic Competitiveness and National Science and Mathematics
Access to Retain Talent Grants. Subpart 1 also authorizes the Academic
Competitiveness grant (AC) and National Science and Mathematics Access to Retain
Talent grant (SMART) programs. Both programs provide grants to Pell Grant-
eligible students who are enrolled full time, at either a two-year or four-year degree-
granting IHE. However, unlike Pell, to be eligible a student must be a U.S. citizen.
AC grants are limited to students who are in either their first year or second year of
undergraduate education, and have a completed a rigorous secondary program.
SMART grants are for third and fourth year undergraduate students, who major in
certain technical fields or foreign languages.17
Subpart 2: Federal Early Outreach and Student Services Programs.18
Subpart 2 of Part A contains the authorization for the five TRIO programs and the
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR-UP).
Under each of these programs, discretionary grants are awarded to postsecondary
institutions and other eligible agencies to encourage and assist low-income, first-
generation college students, individuals with disabilities, and select minorities, who
have demonstrated potential to complete their secondary education and pursue
postsecondary and postbaccalaureate education.
Federal TRIO Programs. Part A authorizes five separate discretionary grant
programs — Talent Search, Upward Bound, Student Support Services, Education
Opportunity Centers, and McNair Postbaccalaureate Achievement — collectively
known as the TRIO programs. These programs are designed to assist qualified
individuals from disadvantaged backgrounds with preparing for and completing
secondary and postsecondary education. In addition to these programs, funding for
TRIO also authorizes staff development activities and expenses for information
dissemination and program evaluation.
Talent Search. The Talent Search program encourages youth with college
potential to complete high school and enter postsecondary education, and also
encourages dropouts to reenter high school. To accomplish this, Talent Search
programs disseminate information about available postsecondary student assistance,
offer tutoring, and other support services. At least two-thirds of each project’s
participants must be low-income individual and potential first-generation college
students. Participants must have also completed a minimum of five years of
elementary education, and be between the ages of 11 and 27.
Upward Bound. Upward Bound (UB) provides pre-college students and
veterans with the skills and motivation needed to succeed in postsecondary
education. UB programs offer services such as: counseling and workshops; tutoring;


17 For additional information about the AC and SMART grant programs see CRS Report
RL33457, Academic Competitiveness Grants: Background, Description and Selected Issues,
by Charmaine Mercer.
18 Originally, in 1965, there were three programs — Upward Bound, Student Support
Services, and Talent Search — that provided a wide range of student support services, thus
the name TRIO. Subsequent legislation authorized new programs with a similar purpose,
however the name TRIO remains.

and exposure to cultural events. Most UB projects also provide six-week summer
programs on college campuses. Participants may receive monthly stipends of up to
$60 during the summer (work-study students may receive monthly stipends of $300
in the summer) and $40 during the rest of the year. ED also funds Upward Bound
Math and Science Centers providing intensive instruction in math and science. At
least two-thirds of each project’s participants must be low-income, first-generation
college goers; the remainder must be either low-income or a prospective
first-generation college goer. Participants also must have completed at least eight
years of elementary education, and be 13 to 19 years of age.
Student Support Services. Student Support Services (SSS) projects are
intended to improve retention and graduation rates, and improve the transfer rates of
students from two-year to four-year colleges, by offering a broad range of support
services such as academic counseling and guidance. SSS projects may provide such
services as: instruction in reading, writing, study skills, math, and other subjects;
academic counseling; exposure to cultural events; assistance in the graduate
admission and financial aid processes; assistance in transferring from two-year to
four-year colleges; and mentoring. At least two-thirds of SSS participants must be
disabled or low-income and first-generation. The remaining participants must be
either low-income, first-generation, or disabled. Not less than one-third of the
disabled participants must also be low-income.
McNair Postbaccalaureate Achievement Program. The McNair
Postbaccalaureate Achievement Program prepares low-income and first-generation
undergraduate students for doctoral study. Among the services that McNair
programs may provide are: research opportunities, seminars, and other activities
preparing students for doctoral study; summer internships; academic counseling;
assistance in securing graduate admission and financial aid; mentoring; and exposure
to cultural events and academic programs. Research participants may receive an
annual award providing a stipend of up to $2,800; the award may cover the costs of
summer tuition, room and board, and transportation as well. At least two-thirds of
the participants must be low-income and first-generation undergraduates; the
remainder must be from a group underrepresented in graduate education.
Education Opportunity Centers. The Education Opportunity Centers (EOC)
program is intended to provide information to prospective postsecondary students
regarding available financial aid and academic assistance, and help them apply for
college admission and financial aid. EOCs may provide information to communities
about postsecondary education and training opportunities, assistance in completing
admission and financial aid applications, assistance preparing for college entrance
exams, and guidance on reentering secondary school, or entering a GED program or
other program for high school dropouts. At least two-thirds of the participants must
be low-income and would be first-generation college goers. The participants must
also be at least 19 years old.
Gaining Early Awareness and Readiness for Undergraduate
Programs. Part A also authorizes the Gaining Early Awareness and Readiness for
Undergraduate Programs (GEAR UP), which provides grants to states and
partnerships to support early college preparation and awareness activities at the state
and local levels, to ensure low-income elementary and secondary school students are



prepared for and pursue postsecondary education. GEAR UP grantees serve an entire
cohort of students beginning no later than the seventh grade and follow the cohort
through high school. GEAR UP has two major components: (1) eligible projects
provide early intervention services such as mentoring, career counseling, and college
visits; and (2) college scholarships to eligible participating students.
Subpart 3: Federal Supplemental Educational Opportunity Grants.
The Federal Supplemental Educational Opportunity Grants (FSEOG) is one of the
three programs collectively referred to as the campus-based programs — Federal
Work Study (FWS) and Perkins Loans are the other two — because their funds are
allocated to postsecondary institutions to administer and award to students. In
addition to institutions administering the funds for these programs the participating
institution must match a portion of their allocation under each program. Institutions
are required to award FSEOGs to students with exceptional financial need, with
priority going to students receiving Pell Grants.
The federal share of funds for FSEOG is allocated to IHEs according to a
statutorily prescribed formula that is largely driven by the institution’s initial year of
participation in the program. Institutions first are allocated funds in proportion to the
amount they received in previous years, with priority going to institutions that
participated in the program in FY1999 or earlier. Funds are then allocated to those
institutions that began participating after FY1999, but which are not first- or
second-time participants. Following this, funds are allocated to institutions that are
first- or second-year participants.19
Subpart 4: Leveraging Educational Assistance Partnership
Program. The Leveraging Educational Assistance Partnership (LEAP) program
provides matching federal funds to states to encourage and assist them in providing
eligible postsecondary students with need-based grants and work-study aid.
Subpart 5: Special Programs for Students Whose Families Are
Engaged in Migrant and Seasonal Farmwork. There are two programs
authorized under Subpart 5: the High School Equivalency Program (HEP) and the
College Assistance Migrant Program (CAMP). HEP helps persons 16 years of age
or older who are not currently enrolled in school to obtain the equivalent of a
secondary school diploma and subsequently to gain employment or to begin
postsecondary education or training. CAMP assists students enrolled in the first
undergraduate year at an institution of higher education to complete their programs
of study for that year.
Subpart 6: Robert C. Byrd Honors Scholarship Program. The Robert
C. Byrd Honors Scholarship program is a federally funded, state-administered
scholarship program, designed to recognize exceptionally able high school seniors
who show promise for continued excellence in postsecondary education. ED awards


19 For additional information regarding the FSEOG formula see CRS Report RL31618,
Campus-Based Student Financial Aid Programs Under the Higher Education Act, by David
P. Smole.

funds to state education agencies, which make scholarship awards to eligible
applicants.
Subpart 7: Child Care Access Means Parents in School. The Child
Care Access Means Parents in School program is designed to support the
participation of low-income parents in postsecondary education through campus-
based child care services. The program awards competitive grants to IHEs to
establish or support a campus-based child care program.
Part B: Federal Family Education Loan
The Federal Family Education Loan program (FFEL) is authorized under Title
IV, Part B. Under the FFEL program, loan capital is provided by private lenders, and
the federal government guarantees lenders against loss through borrower default,
death, permanent disability, or in limited instances, bankruptcy. FFEL program loans
are originated by private lenders. Private lenders also are responsible for billing
borrowers and collecting loan payments. State and nonprofit guaranty agencies
receive federal funds to play the lead role in administering the federal loan insurance
and for providing other FFEL program administrative services.
FFEL loans are an entitlement, meaning the funding for the program is
mandatory and therefore not subject to the annual appropriations process. The
following types of federally sponsored student loans are available through the FFEL
program to support postsecondary student expenses: Stafford loans, subsidized or
unsubsidized; PLUS loans; and Consolidation loans. Loan Limits, repayment plans,
deferment and forbearance benefits, interest rates and other terms and conditions are
determined by statutory provisions.20
Subsidized Stafford loans. Subsidized Stafford loans are available to
undergraduate and graduate students. The federal government “subsidizes” these
loans by paying the interest on the loans while the student is enrolled in school on at
least a half-time basis and during grace periods and deferment periods. To qualify
for a subsidized Stafford loan a student must have financial need.
Unsubsidized Stafford loans. Unsubsidized Stafford loans are available
to undergraduate and graduate students. The federal government does not pay the
interest on these loans while the student is in school or during deferment and grace
periods. Students can qualify for unsubsidized Stafford loans regardless of financial
need.
PLUS loans. PLUS loans are available to parents of dependent undergraduate
students and to graduate students. The federal government does not pay the interest
on PLUS loans while students are in school or during deferment or grace periods.
Borrowers can qualify for PLUS loans regardless of financial need.


20 For additional information regarding loan terms and conditions see CRS Report RL33673,
Federal Family Education Loan Program and William D. Ford Direct Loan Program
Student Loans: Terms and Conditions for Borrowers, by Adam Stoll.

Consolidation loans. Consolidation loans allow borrowers with existing
federal student loans to combine their obligations and possibly extend their
repayment period.
Part C: Federal Work-Study Programs
Title IV, Part C authorizes the Federal Work-Study Programs (FWS), one of the
three campus-based programs previously described. The purpose of FWS is to
provide part-time employment to undergraduate, graduate, and professional students
in need of earnings to pursue their course of study; and to encourage student
participation in community service activities. Students receive their awards as
compensation for the hours they have worked Unlike the FSEOG where aid is
required to be awarded first to students with exceptional financial need, FWS aid
may be provided to any student demonstrating financial need. Awards typically are
based on factors such as each student’s financial need, the availability of FWS funds,
and whether a student requests FWS employment and is willing to work.
Part D: William D. Ford Federal Direct Loan Program
The William D. Ford Federal Direct Student Loan program (DL), authorized
under Title IV, Part D, was intended to streamline the student loan delivery system
and achieve cost savings. The DL program provides the same set of loans as the
FFEL program, but uses a different administrative structure and draws on a different
source of capital. Under the DL program, the federal government essentially serves
as the banker — the federal government provides the loans to students and their
families, using federal capital (i.e., funds from the U.S. Treasury), and owns the
loans. Under the DL program, schools may serve as direct loan originators or the
loans may be originated by contractors working for ED. Similar to FFEL, DL loans
include subsidized, unsubsidized, PLUS loans and consolidation loans.
Part E: Federal Perkins Loans
The final campus-based program, Federal Perkins loans, authorizes the
allocation of federal funds to IHEs to assist them in capitalizing revolving loan funds
for the purpose of making low-interest loans to students with exceptional financial
need. Institutions capitalize revolving loan funds with a combination of federal and
institutional capital contributions. IHEs apply to ED for funds which are allocated
according to procedures similar to those previously discussed for the FSEOG
program.
Institutions are required to establish written selection procedures for awarding
Perkins Loans to eligible students. Loans must be made reasonably available to all
eligible students, to the extent that funds are available, and priority must be given to
students with exceptional financial need. Undergraduate students and graduate and
professional students are eligible to borrow under the Perkins Loan program. Interest
on Perkins Loans is fixed at a rate of 5% per year; however, no interest accrues prior
to a student beginning repayment.



Part F: Need Analysis
Title IV, Part F authorizes the federal need analysis system, which is used to
allocate billions of dollars of federal student aid under Title IV of the HEA, and by
states and many IHEs as well. The need analysis process entails gathering financial
data, which are provided by the student via the free application for federal student aid
(FAFSA); calculating the expected family contribution (EFC); and packaging of the
applicant’s financial aid award by the postsecondary institution’s financial aid
administrator.
The EFC is the amount that the need analysis system determines a family has
available to contribute toward postsecondary education expenses. In calculating the
EFC, consideration is given to available income (a combination of taxable and
untaxed income and benefits), and for some families, available assets. In addition,
living expenses, retirement needs, and federal and state tax liability are considered.
The income contribution is calculated by determining the total income of a student
and his or her family (where applicable), and determining available income by
subtracting a series of allowances from total income; a percentage of that available
income is considered as an income contribution toward postsecondary education
costs. A contribution from assets is similarly calculated. The combination of the
available income and asset contribution divided by the number of individuals in the
family enrolled in college constitutes the EFC.
The calculation of the EFC varies depending upon the applicant’s dependency
status. There are three separate dependency classifications for individual applicants:
dependent student, independent student with dependents, and independent student
without dependents.21 These distinctions are important because parental financial
information is not considered if the applicant meets the statutory definition of an
independent student.
Part G: General Provisions Relating to Student Assistance
Programs
Title IV, Part G establishes institutional requirements for Title IV participation
and related provisions. It includes definitions of terms such as “academic year” and
“eligible program” that affect an institution’s participation in the federal student aid
programs. Part G establishes a master calendar related to federal student aid
programs that the Secretary is required to follow, and includes requirements related
to forms and regulations, including the FAFSA. This part also contains student
eligibility requirements to receive federal student aid, including the types of
institutions and programs in which students must enroll, ability-to-benefit
requirements for students who are not high school graduates, and penalties related to


21 According to the Higher Education Act, Title IV, Section 480(d), an applicant must meet
one of the following conditions to be classified as independent: 24 years of age or older,
married, enrolled in a graduate or professional program, have a dependent other than a
spouse, orphan or ward of the court (or was up until age 18), or a military veteran or active
duty service member. Students who do not meet any of the aforementioned conditions are
considered to be dependent for the purposes of Title IV student aid.

drug-related offenses. Provisions are also included that prescribe how Title IV funds
will be returned to the federal government by IHEs and students in the event that a
student withdraws from the institution.
Part G also contains numerous requirements regarding institutional information
dissemination activities for prospective and enrolled students. For example, IHEs are
required to provide information related to available student financial assistance
programs, exit counseling to borrowers, and data on athletically related student aid,
campus security policies, and campus crime statistics.
Additionally, Part G authorizes combined payment plans for borrowers, the
National Student Loan Data System, loan simplification, the College Access
Initiative, the Distance Education Demonstration Program, regulatory relief and
improvement (e.g., Quality Assurance Program and streamlining experiments), wage
garnishment requirements, administrative expenses, criminal penalties,
administrative subpoenas, the Advisory Committee on Student Financial Assistance,
and regional meetings and negotiated rulemaking.
Finally, Part G includes the Program Participation Agreement (PPA), which all
institutions must sign to participate in Title IV programs, and authorizes the Secretary
to issue regulations regarding audits, financial responsibility, and penalties for IHEs
failing to meet requirements.
Part H: Program Integrity
Title IV, Part H includes three subparts that specify the roles and responsibilities
for the three aspects of the program integrity triad: state authorization, accreditation
by an accrediting organization recognized by the Secretary, and eligibility and
certification by ED.
Subpart 1: State Role. Subpart 1 requires states to provide the Secretary
with various information about the licensing and authorization process used by the
state, if the state has revoked the authority of an IHE to operate, and if the state has
evidence that an IHE has committed fraud related to Title IV programs or
substantially violated a Title IV provision.
Subpart 2: Accrediting Agency Recognition. Subpart 2 delineates the
criteria the Secretary utilizes to recognize an accrediting agency as a reliable
authority for determining the quality of education or training offered by an IHE for
the purposes of participating in the federal student aid programs (Title IV) and other
federal purposes. These criteria include, for example, requirements related to the
structure of the accrediting agency, the agency’s operating procedures (e.g.,
institutional review process), and due process requirements.
Subpart 3: Eligibility and Certification Procedures. Subpart 3 includes
the eligibility and certification procedures administered by ED. In this capacity, ED
is responsible for verifying the institution’s legal authority to operate in a state and
its accreditation status, and for evaluating its administrative capability and financial
responsibility.



Part I: Competitive Loan Auction Pilot Program
Title IV, Part I authorizes the Secretary of Education to implement a student
loan auction program for parent PLUS loans in the FFEL program to begin on July
1, 2009.22 Prior to implementation the Secretary would hold an auction in each state
where lenders would bid on the minimum amount of subsidization they would accept
to have exclusive rights to originate parent PLUS loans in that state.
Part J: Strengthening Historically Black Colleges and
Universities and Other Minority-Serving Institutions
Title IV, Part J allocates funding for Hispanic-serving institutions, historically
black colleges and universities, tribal colleges and universities, and Alaska Native
and Native Hawaiian-serving institutions. It also authorizes new programs and
allocates funding for Predominantly Black Institutions, Asian American and Pacific
Islander-serving institutions and Native American Non-Tribal-serving institutions.23
Title V: Developing Institutions
In 1998 Congress authorized the inclusion of grants to Hispanic-Serving
Institutions (HSIs) under Title V of the HEA. Prior to 1998, the HSI program was
a section of Title III, Part A. Title V of the HEA is solely dedicated to authorizing
grants for HSIs.
Part A: Hispanic-Serving Institutions
Title V, Part A authorizes grants to institutions that provide and increase the
number of educational opportunities available to Hispanic and other low-income
students. To qualify as an Hispanic-serving institution (HSI) for the purposes of Title
V, an institution must have a minimum 25% full-time, Hispanic undergraduate
student enrollment. In addition, HSIs must also satisfy requirements similar to those
for Title III, Part A institutions, including the following: they must serve needy
students and have low general and education expenditures in comparison with other
similar institutions.
HSIs are authorized to use their funds for specific activities that parallel those
delineated under Title III Part A. Additionally, HSIs can use their funds to establish
or enhance teacher education programs; establish community outreach programs to
provide elementary and secondary school students with the interest and skills to
pursue postsecondary education; and expand courses and institutional resources in


22 The Competitive Loan Auction program was newly added to the HEA by the College
Cost Reduction and Access Act of 2007 (P.L. 110-84).
23 The Strengthening Historically Black Colleges and Universities and Other Minority-
Serving Institutions was newly added to the HEA by the College Cost Reduction Act of

2007 (P.L. 110-84).



order to increase the number of Hispanic and other underrepresented graduate or
professional students that the institution can serve.
Part B: General Provisions
Title V, Part B contains the general provisions, including waiver authorities that
apply to the administration of these programs, and specifies the various authorization
funding levels for the Title V programs.
Title VI: International Education Programs
Title VI contains four parts that authorize an array of international and foreign
language studies programs and business and international education programs to
strengthen domestic IHEs in foreign languages and in area and international studies.
Part A: International and Foreign Language Studies
Title VI, Part A authorizes a series of programs, centers, and fellowships related
to international and foreign language studies.
!The National Language and Area Centers and Programs provide
grants to IHEs to establish, strengthen, and operate (1)
comprehensive foreign language and area or international studies
centers and programs (National Resource Centers), (2) a network of
undergraduate foreign language and area or international studies
centers and programs (Undergraduate International Studies and
Foreign Language Program).
!The Graduate Fellowships for Foreign Language and Area or
International Studies program provides grants to IHEs to enable
them to pay stipends to individuals participating in advanced
training in the aforementioned centers and programs.
!Language Resource Centers, authorized by Part A, provides grants
to IHEs to establish, strengthen, and operate national language
resource and training centers and award grants to IHEs to establish,
strengthen, and implement programs to improve undergraduate
instruction in international studies and foreign languages.
!International Research and Studies Projects are grants or contracts
to conduct research and studies focused on instruction and national
needs in foreign languages and area or international studies.
!Technological Innovation and Cooperation for Foreign Information
Access program authorizes grants to develop innovate techniques or
programs using new electronic technologies to collect, organize,
preserve, and disseminate information on world regions and
countries that address U.S. teaching and research needs in foreign
languages and international studies.
!Finally, the American Overseas Research Centers program makes
grants to consortia of IHEs to enable the centers to promote
postgraduate research, exchanges, and area studies.



Part B: Business and International Education Programs
Title VI, Part B authorizes grants to IHEs to pay the federal share of the cost of
planning, establishing, and operating centers for international business education
which will be national resources for the teaching of international business, provide
instruction in critical foreign languages and international fields, and provide research
and training in the international aspects of trade, commerce, and related areas
(Centers for International Business Education). It also authorizes grants to IHEs to
promote linkages between IHEs and the American business community engaged in
international economic activity (Business and International Education Projects).
Part C: Institute for International Public Policy
Title VI, Part C authorizes the Institute for International Public Policy program.
This program supports activities to increase the representation of African Americans
and other underrepresented minorities in international service.
Part D: General Provisions
Title VI, Part D contains definitions relevant to Title VI.
Title VII: Graduate and Postsecondary
Improvement Programs
Title VII authorizes several graduate education programs, as well as a grant
program designed to support innovation and improvement in postsecondary
education. It also authorizes grants for urban community service and demonstration
programs to enable IHEs to better serve disabled students.
Part A: Graduate Education Programs
Title VII, Part A authorizes several graduate education programs. The Jacob K.
Javits Fellowships program provides financial support to students of “superior
ability” in the arts, humanities, and social sciences. The Graduate Assistance in
Areas of National Need (GAAN) provides competitive grants to postbaccalaureate
students in areas of national need. The Thurgood Marshall Legal Educational
Opportunity program authorizes a grant or contract to the Council on Legal
Education Opportunity for services and activities to help low-income, minority, or
disadvantaged college students prepare for, gain access to, and complete law school.
Part A also includes general provisions that affect the administration and evaluation
of these programs and the provision of continuation awards.
Part B: Fund for the Improvement of Postsecondary
Education
Title VII, Part B authorizes the Fund for the Improvement of Postsecondary
Education (FIPSE) awards to IHEs and other nonprofit entities for projects that



model innovative reform and improvement of postsecondary education. Also
included are provisions establishing the National Board of the Fund for the
Improvement of Postsecondary Education, which provides guidance on priorities for
the improvement of postsecondary education. Part B also includes administrative
provisions and the authority to make grants for special projects in areas of national
need.
Part C: Urban Community Service
The Urban Community Service program has not been funded since FY1999 and
therefore will not be discussed.
Part D: Demonstration Projects to Ensure Students with
Disabilities Receive a Quality Higher Education
Title VII, Part D authorizes demonstration projects that support technical
assistance and professional development for faculty and administrators at IHEs to
enable them to better serve postsecondary education students with disabilities.
Part E: College Access Challenge Program
Title VII, Part E authorizes the College Access Challenge Grant Program, which
makes funds available to states and philanthropic organizations to provide students
and families with information about the benefits of college, outreach activities, career
preparation and need-based grant aid among other things.24


24 The College Access Challenge Grant Program was newly added to the HEA by the
College Cost Reduction and Access Act of 2007 (P.L. 110-84).