It took five years, dozens of drafts, and a total of 14 extensions, but Congress last week was finally on the verge of passing a bill to renew the Higher Education Act, the major law governing federal student aid. The bill, after approval by the U.S. House of Representatives, was headed to the Senate, where a final vote was planned for late last…

Skeptics question whether infusion of billions of dollars for education in the economic-stimulus bill before Congress would actually give a healthy jolt to the economy. The bill would help thousands of students pay for college and could give colleges money to fix crumbling buildings. Some members of Congress are calling for the removal of…

Senator Charles E. Grassley may be backing away from his threat to offer legislation that would require the wealthiest institutions to spend up to 5% of their endowment assets each year. At a panel discussion on Capitol Hill last week, the Iowa senator, who is the senior Republican on the Senate Finance Committee, strongly hinted that he would…

In a speech before a group of career-college executives and lobbyists, freshman Representative Jason Altmire hinted that he would look out for the sector's interests in a coming conference between the House of Representatives and the Senate on legislation to reauthorize the Higher Education Act. Referring to a provision in the bill that would…

Several months into a credit crunch that has led at least 20 lenders to leave the guaranteed loan program or suspend their lending operations, lawmakers have begun to respond with a sense of urgency, even as they seek to reassure students and parents that a crisis is unlikely and that federal student loans will still be available this fall. In the…

More than three decades ago, the debate for Higher Education Act was open to the public. Today the process of crafting a compromise bill looks very different, and the forces shaping the major law governing student aid have shifted in ways both significant and subtle. The changes have given new voices a say in policy decisions and made it harder…

When Senator Jim Webb, a Democrat from Virginia, introduced his "21st-Century GI Bill" last year, he predicted that it would give veterans of the wars in Iraq and Afghanistan the same educational opportunities that World War II veterans received under the original GI Bill of Rights, signed into law more than a half century ago. Webb's…

Buried in a spending measure passed by the U.S. House of Representatives is a provision that could thwart Republican efforts to scuttle legislation designed to bolster the federal direct-loan program. The provision, which appears on the final page of the House's spending blueprint for the 2008 fiscal year, simply instructs the House education…

The Senate education committee approved a pair of bills that would reduce government subsidies to student-loan companies, increase student aid, and set higher-education policy for the next five years. The Senate's budget-reconciliation measure would use the savings derived from reducing subsidies to student-loan companies to pay down a portion of…

In December 2005, purchasing agents at Florida International University issued a request for proposals seeking banks and student-loan companies for a list of "preferred lenders" that the university planned to give to prospective borrowers. The request alone was not unusual. Many colleges use competitive bidding to secure attractive terms…