Status of the Perkins Loan Program COHEAO Update: May 2006 Bruce Caplin President – RC Services, Inc. National Co-Chair COHEAO Grass Roots Action Network

Legislative Status  Perkins Loan Program was not eliminated or reauthorized in but was extended  S – comprehensive HEA reauthorization bill  Reauthorizes Perkins Loan Program through 2012  Incorporated into Deficit Reduction Act and passed by Senate  Stripped in conference due to “Byrd Rule”  H.R. 609 – comprehensive HEA reauthorization bill  Reauthorizes Perkins Loan Program  Passed the full House on March 30, 2006 by vote of 221 to 199  Currently, no legislation proposes to eliminate the Perkins Loan Program

Reauthorization Outlook  Current HEA expires July 1, 2006  Short term extensions passed repeatedly  House & Senate need to pass comprehensive HEA reauthorization bills  House passed HEA on March 30  H.R. 609 to be basis of the bill  Senate schedule TBA – June - July?

President’s FY2007 Request  Request is for $54.4 billion for Department of Education  Cut of $1.5 billion relative to FY2006  Effectively would eliminate Perkins Loans  No funding for Loan Cancellations or the Federal Capital Contribution  Elimination “saves” the Department of Education $664 million in FY2007  Congress on the budget: “Scandalous”

Budget/Appropriations Outlook - Senate  Senate FY2007 Budget Resolution increases discretionary spending  Specter-Harkin amendment added $7 billion for education, health and workforce programs  Grassroots were critical  Appropriations Outlook?  Senate budget numbers good for Perkins Loan Program, but do not ensure FCC and Cancellation funding  Depends on final budget resolution – if one can be reached

Budget/Appropriations Outlook - House  House Passed FY2007 Budget Resolution (H. Con.Res 376) on May 18  Vote was 218 to 210  Calls for $10 billion less discretionary spending than the Senate resolution  Outlook?  House will be more fiscally conservative than Senate  House/Senate Conference will be difficult

What You Can Do  House and Senate now planning conference to work out differences in their budget resolutions  Likelihood of agreement is not great  Dear Colleague letters will be written both in House and Senate  Write Appropriations Committee members in support of funding for the FCC and Loan Cancellations.  Find out more:   