Highlights in this month’s issue include information on new federal higher education legislation, funding for the Institute for Autism Research and information on the New York State budget.
The Student Aid and Fiscal Responsibility Act
While approval of the Higher Education Opportunity Act in 2008 set out major federal policy that covers a full range of higher education issues over a six year period, Congress has been considering additional legislation that will change certain federal policies and make additional funds available to students.
The House of Representatives last fall approved its version of the Student Aid and Fiscal Responsibility Act (SAFRA). The Senate held back as members waited to determine if the SAFRA bill would be merged with federal health care legislation in the parliamentary procedure known as “budget reconciliation.” That has occurred. SAFRA has been approved by both houses and was signed by President Obama on March 30.
Included in the legislation are initiatives that will:
- Require all colleges to convert to direct lending by July 1, 2010. Congressional sponsors project savings from this move at $61 billion over the next ten years because the direct loan program administered by financial aid offices will cost less than the bank-based lending program that has dominated the federal college loan program. Canisius is already in the direct loan program.
- Allocate $36 billion of those savings to Pell grant increases and to cover shortages in current Pell grant accounts that have occurred due to changed eligibility requirements and a larger number of students attending college. A portion of the savings will be used to reduce the federal deficit as well as to provide funds for other educational programs.
- Increase funding for Pell grants starting in federal fiscal year 2013 to bring the full-year maximum award to $5,975 in 2018.
- Beginning with loans originating on or after July 1, 2014, limit monthly payments on federally subsidized student loans to 10 percent of discretionary income, and forgive loans entirely after 20 years.
Funding for Canisius Institute for Autism Research
The 2010 federal budget includes a $400,000 appropriation to Canisius College for science programs, including equipment and technology. The appropriation was sponsored by Rep. Brian Higgins and Rep. Chris Lee and will be used by the college’s Institute for Autism Research.
A new request for federal Fiscal Year 2011 (FY11) funding for the Institute has been submitted to Senator Kirsten Gillibrand, who has previously sponsored legislation and appropriations for autism research at other institutions. A second request for funds has been submitted to Senator Charles Schumer, Congresswoman Louise Slaughter and Congressmen Higgins and Lee for funds to equip and renovate Science Hall. Action on the FY11 requests is several months away.
State budget
The State Legislature continues to review Governor Paterson’s proposed 2010-2011 budget, which must close a projected $9.2 billion budget gap. The governor has proposed some minor changes in the Tuition Assistance Program but it appears that the Legislature will reject most of those plans. A cut to Bundy aid, which most independent colleges and universities use to supplement student financial aid, appears likely. The state’s new fiscal year began on April 1, but a new budget is not completed to date.
Submitted by: Ken Kruly, director, government relations
