Student Loans, Student Aid, and FY2008 Budget Reconciliation (CRS Report for Congress)
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| Release Date |
Revised Oct. 23, 2007 |
| Report Number |
RL34077 |
| Report Type |
Report |
| Authors |
Adam Stoll, David P. Smole, and Charmaine Mercer, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The College Cost Reduction and Access Act of 2007 was enacted as P.L. 110-84 on September 27, 2007. P.L. 110-84 makes changes to programs authorized under the Higher Education Act of 1965 and, in so doing, achieves projected savings of $752 million in mandatory spending over the period covering FY2007 through FY2012 and $3.6 billion over the period covering FY2007 through FY2017.
The FY2008 budget resolution (S.Con.Res. 21, H.Rept. 110-153) contains reconciliation instructions that require the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor, and Pensions to report reconciliation legislation to reduce mandatory spending by $750 million over the period covering FY2007 through FY2012. As required, these committees reported reconciliation recommendations producing the required savings to their parent chamber prior to September 10, 2007.
Each of the aforementioned authorizing committees marked up a bill in June of 2007 with reconciliation recommendations that generate the required savings in mandatory spending. Each chamber also considered a broad set of Higher Education Act (HEA) amendments in conjunction with the reconciliation proposals. Under each bill, the required savings are achieved through cuts in payments to Federal Family Education Loan (FFEL) program lenders and guaranty agencies. Both bills generate substantially higher levels of savings in mandatory spending than required by the reconciliation directive, and the additional savings offset costs associated with a broad array of new or enhanced student aid benefits.
On June 25, 2007, the House Committee on Education and Labor reported H.R. 2669, the College Cost Reduction Act of 2007 (H.Rept. 110-210), containing the required reconciliation proposals. On July 11, 2007, the measure was adopted by the House. On July 10, 2007, the Senate Committee on Health, Education, Labor, and Pensions reported S. 1762, the Higher Education Access Act of 2007, containing its reconciliation recommendations. The provisions of S. 1762, were incorporated into the Senate version of H.R. 2669, which the Senate passed on July 20, 2007.
This report reviews and briefly describes the major proposals contained in both the House-passed and Senate-passed versions of H.R. 2669 to achieve savings in mandatory spending through changes to federal student loan programs and to enhance student aid benefits or make other changes to existing federal student aid programs. It also reviews and describes the major changes enacted under P.L. 110-84 that are projected to achieve savings in mandatory spending and those that establish new or enhanced student aid benefits or that otherwise amend pre-existing federal student aid programs. This report is structured to provide a record of proposals to achieve savings in mandatory spending or to provide new or enhanced student aid benefits considered during FY2008 budget reconciliation and that have gained passage by one or both chambers, as well as those enacted into law. This report will not be updated.
