1. President’s Report February 6, 2019 Presented by: James Bergeron
NCHER Legislative Conference
February 6, 2019

2. Political/Policy Landscape
Recent mid-term election changed the landscape
Divided Congress likely to have few legislative victories – 2019 is key bc of Presidential election
New Democratic House majority gearing up for
investigations
Expanded Senate majority – trying to stay relevant

3. Political/Policy Landscape
(Renamed) House Education and Labor Committee – 28 Ds and 22 Rs, 26 new, 25% larger
Generic hearings – first
six months
More specific hearings on HEA
reauthorization – next three months
Bipartisan negotiations – Aim Higher Act as base, but unlikely to reach agreement with Republicans

4. Political/Policy Landscape
Democratic Priorities – “non-negotiables” 
New Accountability structure for poor performing schools – similar to gainful employment metric 
Reform to rule
Additional federal and state resources
(free college)
Refinancing of federal/private student loans

5. Political/Policy Landscape
Senate HELP Committee – largely the same as last year, but full plate with healthcare and nominations
With Chairman Alexander’s retirement, HEA is his legacy (FAFSA simplification and big ideas)
But what role will Education Secretary DeVos play in reauthorization, and will Ranking Member Murray set aside her frustrations to get a bill?

6. Political/Policy Landscape
And more importantly, how will the Presidential candidates influence the process?

7. NCHER Advocacy Priorities for the 116th Congress

8. Making Smart Postsecondary Education Decisions
Encourage states/institutions to provide face-to-face financial education and counseling services to students and families
Strengthen existing entrance and exit counseling
Promote the use of 529 plans

9. Improving Federal Student Aid Programs
Simplify and streamline the myriad of student loan repayment plans
Dramatically reduce the number of questions on the FAFSA
Provide authority to financial aid administrators to lower annual and aggregate student loan limits
Limit the amount parents can borrow under the PLUS Program

10. Promoting Stability for Federal Student Loan Borrowers
Provide an alternative rate to LIBOR
Allow defaulted borrowers to rehab their student loans a second time, if needed
Streamline the transfer of rehabilitated loans
Expanding Access to Loan Rehabilitation

11. Combatting Debt Relief Scams
Support the “Stop Student Debt Relief Scams Act” that would:
Restrict access to the Department’s information technology systems
Require institutions to provide a warning to borrowers on third-party debt relief companies
Prevent improper access to NSLDS

12. Promoting Greater Consumer Choice
Remove preferred lender list restrictions
Support the “Transparency in Student Lending Act,” which mandates that Direct Loan borrowers receive accurate disclosures of the costs of their loans
Allow “private education lenders” as defined in the Truth-in-Lending Act to offer private loan rehabilitation
Allowing Private Education Loan Rehabilitation

13. Promoting Better Loan Servicing for Borrowers
Develop a student loan servicing system that includes a single portal
Create a Common Manual to set high-quality and strong national servicing standards and protections
Foster the participation of multiple service providers to promote competition

14. Eliminating Unnecessary Barriers for Federal Student Loan Borrowers
Extend the payment of Account Maintenance Fees
Provide just-in-time reinsurance payments to facilitate cash into the Federal Fund
Remove the 45% cap on recoveries through Federal Consolidation Loans

15. Leveraging the Expertise of State and Nonprofit Organizations
Provide the Department of Education’s primes with credit for working with small business subcontractors, including state and nonprofit organizations

16. Promoting Tax-Exempt Financing (non-HEA)
Support the “Student Loan Opportunity Act” to update Section 150(d)
Clarify IRS guidance on refunding bonds
Eliminate the state volume cap on private activity bonds while preserving tax-exempt financing of education loans

17. Using Technology to Help Struggling Borrowers (non-HEA)
Urge the Federal Communications Commission to reconsider its final rules and strike a more appropriate balance between protecting consumers and allowing reasonable and responsible use of dialer technology
Support the establishment of a reassigned number database

18. Issues to Watch in 2019 Next Generation Financial Services Environment
Negotiated Rulemaking on Accreditation-Innovation
New Rules on Borrower Defense to Repayment, Gainful Employment, Debt Collection (CFPB)
Modifications to TCPA – After Courts Rule?