Washington, D.C. – Congresswoman Lucille Roybal-Allard (CA-34) is pleased to announce the enactment of The Higher Education Opportunity Act, a bipartisan bill that opens doors to education for college-bound students amidst the soaring costs of a higher education.

With Congresswoman Roybal-Allard’s support, the U.S. House of Representatives passed the Higher Education Opportunity Act on July 31 in a vote of 380-49.  The measure was signed into law on August 14, 2008. 

With its comprehensive reauthorization, the Higher Education Opportunity Act remains the primary federal law aimed at expanding college access for low- and middle-income students.  

“According to the College Board, tuition and fees at two- and four-year public and private institutions have soared in recent years.  These high costs are financial barriers for many students seeking a college degree,” Congresswoman Lucille Roybal-Allard said.  “The Higher Education Opportunity Act will significantly help talented students from my district, many of whom are the first in their families to attend college and rely on Pell Grants and other forms of federal assistance, to pay for the cost of college.”

“I was pleased to join with my colleagues in Congress in passing this needed legislation to help address the ever-increasing costs of a college education,” Congresswoman Lucille Roybal-Allard said.  “In California, where public university students have endured tuition increases for the sixth time in 7 years, college students are especially in need of  relief.  We cannot stand by as our students – many of whom are supporting themselves – are priced out of the American Dream that a college education affords.”

The Higher Education Opportunity Act reforms and strengthens the nation’s higher education programs to ensure that they operate in the best interests of students and families. The legislation builds on the Democratic Congress’ efforts to make college more affordable and accessible for all qualified students.  Last year, Congress enacted into law a $20 billion increase in college financial aid over the next 5 years, the largest increase in student aid since the G.I. Bill of 1944.

The Higher Education Opportunity Act makes increased investments to better serve minority students.  This includes expanded authorization levels for Hispanic-Serving Institutions (HSIs) where Hispanics constitute 25 percent or more of the total enrollment at either the graduate or undergraduate level or both.  Hispanic-Serving Institutions that serve students from the 34th Congressional District include California State University-Los Angeles, East Los Angeles College and Cerritos Community College.  In addition, under the new law, federal Pell Grant scholarships, which assist low-income students, will be available year-round starting July 1, 2009.  Nearly 37 percent of all Hispanic students receive Pell Grants each year.

The Higher Education Opportunity Act addresses rising college prices by encouraging colleges to rein in price increases.  To ensure that states maintain their higher education funding commitments, for example, the new law puts in place certain state maintenance-of-effort requirements.  If these requirements are met, states would be eligible for College Access Challenge Grants, which provide funds for need-based aid and support services for low-income students.  The measure also provides colleges and universities that keep prices low with additional need-based grant aid incentives.

By July 1, 2011, the measure provides parents and students with comprehensive information on college pricing.  The new law creates a user-friendly web site to provide students and families with helpful information about institutions, including college prices, graduation rates, and popular majors.  The measure also requires the U.S. Department of Education to annually publish a user-friendly list of all colleges and universities in the country that provides consumers with information on tuition and fees, average price after grant aid, recent price increases, and change in per-student spending.

To help students better access college financial assistance, the Higher Education Opportunity Act simplifies the various methods of payment that families use to cover higher education costs. Most notably, by July 1, 2010, the Free Application for Federal Student Aid (FAFSA) form will be streamlined, creating a more user-friendly approach to financial aid.  In addition, low-income families applying for federal aid will be able to use a simpler, two-page form.

Finally, to ensure that both the federal- and- private education loan programs work in the best interest of students, the Higher Education Opportunity Act implements a series of provisions to protect borrowers.  The provisions – most of which take effect immediately – address a federal student loan program undermined by conflicts of interests, questionable lender practices, and aggressive and sometimes deceptive, marketing campaigns waged by private student lenders.  Under the new law, provisions addressing these problems include requiring institutions and lenders to adopt strict codes of conduct and ensuring borrowers have access to the best loan possible.