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Higher Education Act Created
President Lyndon Johnson signed the Higher Education Act (HEA) establishing that the US Government was the primary provider for financial aid (Aschenbrener, 2016). The goal at this time was to properly identify students who were struggling financially and to supply aid as needed (Gladieux, 1995). -
Additions to the HEA
From 1965-1968, multiple people analyzed the policy as most efficient for helping the middle class rather than the poor. By 1968, the HEA was reauthorized by congress adding in services for the disadvantaged as well as the TRIO Programs (Gladieux, 1995). -
Financial Assistance is Lended Out to More
By 1972, the HEA was altered again. Congress decided to change the term "higher education" to postsecondary school. This allowed financial aide to be lended to career and vocational education, community colleges, trade school, and students in part-time programs (Gladieux, 1995). -
1972 Continued
Grants also became authorized in 1972. The Nixon administration created Basic Opportunity Grants to replace three financial aide programs that were being produced by the college. Basic grants, which are now called Pell Grants, were introduced. At this time, the main goal for the basic grants were to set in as the foundation for all financial aide and how students would apply for any type of financial aide (Gladieux, 1995). -
Changes Started to Blow In
Significant changes began to happen in 1978. The Middle Income Student Assistance Act was introduced which allowed all undergraduate students, in need of financial assistance or not, to be able to claim financial aide. The Basic (Pell) Grants were also lended out to the middle class of students (Aschenbrener, 2016). -
PLUS Loans
In 1992, allowance of the college student's parents to be able to claim financial aid to reduce their education costs by using tax credits was established. The goal of the PLUS loan at this time, was for parents of all full-time college students to be able to borrow up to the full amount of attendance costs. Also in this time frame, the unsubsidized Stafford Loan was created (Aschenbrener, 2016). -
The Impact From Loans Increases
With the loan amounts increasing and parents being able to apply for loans to help pay for college attendance, the volume for student loand shot up. The amount borrowed increased by $10 billion dollars between the school years of 1992-1995 (Gladieux, 1995). -
Financial Assistance from the Internet
In 1997, the FAFSA website was created making it available on the internet. The plan was to make the application more assessable and easier to manage. This is how students apply for financial assistance today (Lewczyk, n.d.). -
The Reauthorization
In 2008, the Higher Education Opportunity Act was enacted and signed by President George W. Bush as it reauthorized the Higher Education Act of 1965. There were a number of improvements added as a goal of the Congress was to meet the needs for students in postsecondary education as well as those with intellectual disabilities (Smith Lee, 2009). -
Attending School on a Pell Grant
In the previous authorization of 2008, Congress enabled students to receive a Pell Grant to afford school all year. In the next few years, multiple students took advantage of this benefit adding more than $4 billion per year to the cost of the program. In 2010, Congress had to reverse itself because the amount added on was financially unsustainable (Hartle, 2013). -
Sky Rocketing Numbers
Financial Aid under Title IV went up to a high of $169 billion, federal loans reached $101 billion, and federal grants topped off at $47 billion. These increases were sky rocketing (CCAP, 2014). -
Current Standing of the HEOA
The Higher Education Opportunity act is is need of readjustments. In February of 2018, the HELP Committee Chairman provided an overview of what needed to be updated. The main goal for now is to update the federal accountability measures in higher education. This will ensure that students are utilizing their time and money beneficially (Thompson Coburn, n.d.). -
Future for the Higher Education Opportunity Act
As the HEOA needs to be updated, there are a few things that could help align the act with today's nation. Modernize the federal requirements for institutions to better act in the federal student loan program is one (Thompson Coburn, n.d.). Another is in the next major policy era, more affordability options for repayment needs to be a highlighted topic. This is an important concern for students entering or continuing their education in postsecondary schooling.