Federal priorities update March 16, 2018 Board Meeting

Federal Priority Updates PROSPER Act Loans Grants Risk-Sharing Work-Study Apprenticeship DACA

PROSPER Act – H.R. 4508 Reauthorization of the Higher Education Act of 1965 857 changes House Republican-introduced bill Senate still working on its version Streamline student aid programs into 3 categories: One Loan One Grant One Work-Study

One Loan Consolidate the 6 loans currently available into new Federal ONE Loan

One Grant Reauthorize Pell Grant through 2024 $300 bonus to students who take a course load “greater than full time” Extends financial aid eligibility to students in shorter-term, workforce programs

One Grant cont. Campus-based financial aid Elimination of the Supplemental Educational Opportunity Grant (SEOG) program, which serves 1.5 million students annually Elimination of the Title IIIA Strengthening Institutions program

Risk-Sharing Students would “earn” their Title IV aid at increments of 25% Require institutions to pay back more money for students who do not complete the term Major financial hit: pay back 1 to 2 times more Programs where students are not paying back their loans would be targeted and potentially lose access to federal aid CURRENT LAW PROSPER ACT

One Federal Work-Study Reduce federal share of funds from 75% to 50% over fours years Amend formula to distribute funds that would benefit community colleges

PROSPER Act - Apprenticeship New Apprenticeship Grant Program Maximum of award of $1.5 million Funds for equipment and learning materials, wage subsidy for students, industry-specific programming, or exams and fees

PROSPER Act – Other items to note The legislation would give for-profit colleges the same statutory status as non-profit institutions “90/10” rule would be eliminated, which requires that for-profit institutions derive at least 10% of their overall funding from non-Title IV sources Elimination of definition of “credit hour”

Deferred Action for Childhood Arrivals program (DACA) Supreme Court did not grant review of the decision to block termination of DACA This decision diminishes pressure on Congress to pass legislation addressing DACA March 5th deadline to terminate DACA is now on hold till the courts can further review the case Could take a year or longer DACA recipients may continue to renew their status beyond March 5th, but the government is not required to accept new DACA registrants

Katie Archambault, Research and Policy Analyst Oregon Community College Association katie@occa17.com | (503) 399-9912 http://www.occa17.com