Tuesday, June 1, 2021

Cardona set to start overhauling higher ed rules — Senate strikes deal on expanding Pell Grants — Education Department plans loan servicing extension

Presented by the Bill & Melinda Gates Foundation: Delivered every Monday by 10 a.m., Weekly Education examines the latest news in education politics and policy.
Jun 01, 2021 View in browser
 
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By Michael Stratford

Presented by the Bill & Melinda Gates Foundation

With help from Cristina Rivero

This newsletter is a weekly version of POLITICO Pro's daily Education policy newsletter, Morning Education. POLITICO Pro is a policy intelligence platform that combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro.

EDUCATION DEPARTMENT SET TO START OVERHAULING HIGHER ED: The Biden administration this month is kicking off what will likely be a yearslong effort to rewrite a wide range of federal higher education rules, starting with a series of virtual public hearings on the administration's planned revisions.

Education rulemaking hearings

First up: The Office for Civil Rights next week will hold public hearings on making changes to the Title IX regulations governing sexual misconduct at schools and colleges, finalized by former Education Secretary Betsy DeVos. On the campaign trail, President Joe Biden promised to put a "quick end" to the DeVos policy , which Democrats and some victims' advocacy groups argue create weaker protections for survivors of sexual assault.

Also on the agenda: issues related to the federal civil rights of transgender students in schools, amid a spate of state bills restricting transgender women and girls' ability to play scholastic sports on women's teams. Department officials said they're seeking input on policies related to Title IX's prohibition on "discrimination based on sexual orientation and gender identity in educational environments."

Later this month, Education Department officials will hold hearings on an ambitious slate of about a dozen federal higher education policies that the Biden administration plans to tackle, among them:

Higher education accountability proposals: Much of Biden's higher-ed agenda is focused on restoring Obama-era rules aimed at for-profit colleges that were scaled back or eliminated during the Trump administration, such as "gainful employment" and "borrower defense." But the Biden administration is also signaling it wants to go further — for example, by tightening the procedures by which how for-profit colleges can convert to nonprofit entities, writing new rules about how the Education Department signs off on when colleges are eligible for federal aid and changing how regulators evaluate whether a college poses a risk to students and taxpayers.

Student loan changes: Some of the proposals will bolster "targeted loan cancellation" programs that already exist for certain populations: federal student loan borrowers who work in public service jobs; borrowers with severe disabilities; borrowers whose education is interrupted by the sudden closure of their college; and borrowers who have not finished repaying their loans after decades of making payments.

The Biden administration is also looking at restoring an Obama-era protections that prohibit colleges from requiring students to give up their right to sue their college, whether directly or through a class-action lawsuit.

A nebulous college equity agenda: The Biden administration said it also plans to examine ways to promote college completion and address racial and gender inequities in the nation's higher education system. The department also wants feedback on regulatory changes to address "gaps in postsecondary outcomes such as retention, completion, loan repayment, and student loan default by race, ethnicity, gender, and other key student characteristics."

Implementing new laws: The Education Department is set to write regulations to carry out the expansion of Pell Grants to cover incarcerated students, which Congress passed and President Donald Trump signed into law in December. The department is also planning new rules governing a path for would-be students without a high school diploma or GED to receiving federal financial aid for college.. Congress cut that program, known as "ability to benefit," in 2012 but partially restored it in 2015.

And the department has indicated it will soon write tighter rules on for-profit colleges, which Congress slipped into Biden's Covid relief package earlier this year. Under the American Rescue Plan, though, the department is prohibited from beginning to implement the expanded restrictions on for-profit colleges' federal funding — known as the 90/10 rule — until Oct. 1.

What's not yet clear: The Education Department has already announced that it plans to convene multiple negotiated-rulemaking committees to begin hammering out the text of its proposed rules as soon as this summer. But a key issue that remains unresolved is how the administration will prioritize what to work on first.

It's likely that the department will group the rules into several regulatory packages . But some of the biggest and most controversial topics will likely have to be broken off and considered alone. "Gainful employment" and "borrower defense,",for instance, have each spanned hundreds of pages.

A matter of timing: For most higher education rules, the Education Department has to follow a "master calendar" provision of federal law that requires the department to finalize a regulation by Nov. 1 in order for it to take effect the following July 1. In practice, that could push the effective date of many of the Biden administration's higher education regulatory agenda items well into 2023, 2024 or beyond.

Secretary of Education Miguel Cardona speaks during the daily press briefing at the White House on March 17, 2021.

Secretary of Education Miguel Cardona speaks during the daily press briefing at the White House on March 17, 2021 in Washington, DC. Secretary Cardona discussed the funding schools will receive to help them reopen during the coronavirus pandemic. (Photo by Drew Angerer/Getty Images) | Drew Angerer/Getty Images

IT'S TUESDAY, JUNE 1. WELCOME TO MORNING EDUCATION. Please send tips to your host at mstratford@politico.com or to my colleagues, Juan Perez Jr. at jperez@politico.com, and Bianca Quilantan at bquilantan@politico.com. Follow us on Twitter: @Morning_Edu and @POLITICOPro.

 

A message from the Bill & Melinda Gates Foundation:

Now more than ever, students and families are asking "What is college worth?" That's what the Postsecondary Value Commission, led by the Institute for Higher Education Policy (IHEP) and supported by the Bill & Melinda Gates Foundation set out to answer. They found that the value of a college degree varies by race, ethnicity, income, and gender—and it shouldn't. Learn more about the commission's findings and action agenda to ensure value is delivered equitably among students: https://www.postsecondaryvalue.org/reports/

 
In Congress

The U.S. Capitol Building on May 14.

A general view of the U.S. Capitol Building on May 14, 2021 in Washington, DC. Republican members of the House of Representatives will gather today for a caucus meeting to pick a replacement for Rep. Liz Cheney (R-WY) as Chair of the House Republican Conference in the U.S. Capitol Visitors Center. (Photo by Anna Moneymaker/Getty Images) | Anna Moneymaker/Getty Images

SENATE STRIKES DEAL ON SHORT-TERM PELL GRANTS: A major expansion of Pell Grants to cover short-term job training programs is poised to hitch a ride on the sweeping Senate science and technology legislation that's aimed at countering China's economic ambitions.

Top Senate leaders last week reached an agreement to include an amendment expanding Pell Grants for vocational training programs as part of a package of last-minute revisions to the U.S. Innovation and Competition Act, S. 1260 (117).

The amendment, by Sens. Tim Kaine (D-Va.) and Rob Portman (R-Ohio), is modeled on the JOBS Act, S. 864 (117), which the lawmakers have been pushing for several years. The legislation allows students enrolled in career training programs as short as eight weeks long to be eligible for Pell Grants, which are currently generally limited to programs that run for at least 15 weeks.

The Kaine-Portman proposal would expand Pell Grants only to vocational training programs at nonprofit and public institutions — for-profit colleges would be excluded. Their amendment includes some tweaks aimed at appeasing critics who are concerned these short-term programs won't produce good outcomes for students. (Others have criticized the proposal for shifting the cost of training low-wage workers from big companies to taxpayers.)

For example, the amendment requires the colleges to demonstrate that graduates of their short-term programs receive a median increase in earnings of 20 percent after completing the training. And colleges would also have to "prominently" publish information about completion rates, job placement rates and post-graduate earnings.

 

JOIN TUESDAY FOR A TALK ON ECONOMIC RECOVERY AFTER COVID-19: The U.S. economy is picking up speed, sparking fears of inflation and financial bubbles even as millions are still out of work following the Covid recession. Join us for an interview with Federal Reserve Vice Chair of Supervision Randal Quarles to discuss the U.S. economic outlook, how the nation's banks are holding up, and what to expect from the Fed on interest rates and regulations. REGISTER HERE.

 
 

What's next: The Senate agreed to postpone final passage of the bill, a sweeping $250 billion science and technology measure, until next week, after it returns from the weeklong Memorial Day break. Republican senators last week threw up a series of procedural hurdles that stalled action on the massive bill.

The legislation also includes two conflicting proposals on whether foreign gifts to U.S. universities should undergo a national security review . A bipartisan proposal approved by the Senate Foreign Relations Committee would empower the Committee on Foreign Investment in the United States to monitor foreign gifts of more than $1 million to American universities. But a separate provision written by the Senate Banking Committee that would effectively block the CFIUS proposal also remains in the bill.

Stricter disclosure of foreign gifts: The latest Senate proposal would lower the threshold at which universities must report gifts and contracts from abroad to the Education Department, from $250,000 to $50,000. Another provision would require large research universities to set up a database of foreign gifts and contracts received by individual faculty members and researchers on their campuses.

Universities had some success in beating back some of the research security provisions they say are burdensome and ineffective. The Senate last week rejected an amendment by Sen. Marco Rubio (R-Fla.) that would have required a new counterintelligence review by the Director of National Intelligence and FBI for each recipient of federal science funding — a proposal universities said would "paralyze" academic research.

 

A message from the Bill & Melinda Gates Foundation:

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Education Department

CORDRAY BOOSTS STATE OVERSIGHT OF STUDENT LOAN INDUSTRY: The Biden administration is scrapping a Trump-era policy that blocked state and federal regulators from accessing records that they need to oversee and investigate some of the nation's largest student loan companies.

Richard Cordray, the new federal student aid chief, announced the change on Friday and vowed to work more collaboratively with state attorneys general and other regulators to police student loan servicers and debt collectors hired by the Education Department.

The policy Cordray reversed was at the center of yearslong disputes between DeVos and state attorneys general. The Trump administration vigorously fought efforts by states to investigate or sue student loan servicing companies over allegedly cheating or misleading borrowers.

The new policy already appears to be changing the Education Department's approach to state requests. Last week, Colorado sued the Pennsylvania Higher Education Assistance Agency over its refusal to turn over records to state regulators.

— State regulations in limbo: The Biden administration hasn't yet announced whether it will reverse the Trump-era legal opinion declaring federal student loan servicers off-limits to state regulators. A department official told POLITICO on Friday that the administration was "looking at how federal laws interact with state efforts to ensure student loan borrowers get high-quality servicing."

Meanwhile, the Biden administration disclosed new details about its plans for student loan servicing last week. Buried in budget documents on Friday, the Education Department revealed that it planned to extend its contracts with existing servicers, such as Navient, Nelnet and PHEAA, when those agreements are up at the end of the year. The extension, the department said in the budget document, would give it time to come up with a longer-term servicing plan.

 

A message from the Bill & Melinda Gates Foundation:

Concerns about college costs and debt are more important than ever for students and families, especially given the COVID-19 pandemic. That's why the Postsecondary Value Commission set out define the value of a college degree and the return on investment. They found that our postsecondary education system doesn't deliver value equitably among students and varies based on background. For example, University of Texas data show that 15 years after completion, White graduates with degrees in Computers, Statistics, and Mathematics earn more than graduates of all other races/ethnicities. Black graduates of these programs earn 25% less per year than White graduates, and Latinx graduates earn 39% less per year. This shouldn't be the case, as all students deserve equitable value from higher education, no matter their background. Learn more about the Postsecondary Value Commission's findings and action agenda to improve postsecondary return on investment and promote equitable value for students: https://www.postsecondaryvalue.org/reports/

 
Syllabus

— The Virginia Theological Seminary, which was built on slavery and Jim Crow labor, has begun paying reparations: The New York Times.

— Virginia teacher opposing school district's transgender policy fights suspension: The Associated Press.

— An Illinois man waits 80 years to graduate from college: NPR.

— Nation's first school mandate on AAPI history heads to Illinois governor: POLITICO.

 

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