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Wednesday, August 28, 2013

Affirmative Action and Diversity in Public Education: Legal Developments



Jody Feder
Legislative Attorney

More than three decades after the Supreme Court ruling in Regents of the University of California
v. Bakke, the diversity rationale for affirmative action in public education remains a topic of political and legal controversy. Many colleges and universities have implemented affirmative action policies not only to remedy past discrimination, but also to achieve a racially and  ethnically diverse student body or faculty. Justice Powell, in his opinion for the Bakke Court, stated that the attainment of a diverse student body is a constitutionally permissible goal for an institution of higher education,” noting that “[t]he atmosphere of speculation, experiment, and creation’ so essential to the quality of higher education is widely believed to be promoted by a diverse student body.” In subsequent years, however, federal courts began to question the Powell rationale, unsettling expectations about whether diversity-based affirmative action in educational admissions and faculty hiring is constitutional under the equal protection clause of the Fourteenth Amendment.

After a series of conflicting lower court rulings were issued regarding the use of race to promote a diverse student body, the Supreme Court agreed to review the race-conscious admissions policies used by the undergraduate and law school admissions programs at the University of Michigan. In Grutter v. Bollinger, a 5 to 4 majority of the Justices held that the University Law School had a “compelling” interest in the “educational benefits that flow from a diverse student body,” which justified its race-based efforts to assemble a “critical mass” of underrepresented” minority students. But in the companion decision, Gratz v. Bollinger, six Justices decided that the Universitys policy of awarding “racial bonus points” to minority applicants was not “narrowly tailored” enough to pass constitutional scrutiny. The decisions resolved, for the time being, the doctrinal muddle left in Bakkes wake. And because the Courts constitutional holdings translate  to the private sector under the federal civil rights laws, nonpublic schools, colleges, and universities are likewise affected.

However, the Grutter and Gratz decisions did not address whether diversity is a permissible goal in the elementary and secondary educational setting. To resolve this question, the Supreme Court agreed to review two cases that involved the use of race to maintain racially diverse public schools and to avoid racial segregation. In a consolidated 2007 ruling in Parents Involved in Community Schools v. Seattle School District No. 1, the Court struck down the Seattle and Louisville school plans at issue, holding that they violated the equal protection guarantee of the Fourteenth Amendment.

More recently, the Court has once again taken up the issue of affirmative action in higher education in two separate cases. In its 2013 ruling in Fisher v. University of Texas at Austin, the Court reaffirmed its holding in Grutter, but nevertheless struck down a race-conscious undergraduate admissions plan at the University of Texas at Austin. Meanwhile, the Court is poised to consider a different question involving racial preferences in higher education during the upcoming 2013-2014 term when it hears arguments in Schuette v. Coalition to Defend Affirmative Action. In Schuette, the Court will determine whether Michigans Proposal 2, which prohibits the
use of racial preferences in higher education, is constitutional.

Date of Report: August 9, 2013
Number of Pages: 33
Order Number: RL30410
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Thursday, August 22, 2013

Institutional Eligibility for Participation in Title IV Student Financial Aid Programs



Alexandra Hegji
Analyst in Social Policy

Shannon M. Mahan
Specialist in Education Policy


Title IV of the Higher Education Act (HEA) authorizes programs that provide financial assistance to students to assist them in obtaining a postsecondary education at certain institutions of higher education (IHEs). These IHEs include public, private nonprofit, and proprietary institutions. For students attending such institutions to be able to receive Title IV assistance, an institution must be

• licensed or otherwise legally authorized to operate in the state in which it is physically located,

• accredited by an agency recognized for that purpose by the Department of Education (ED), and

• certified by ED as eligible to participate in Title IV programs.

These three requirements are known as the program integrity triad and are intended to provide a balance between consumer protection, quality assurance, and oversight and compliance in postsecondary education.

Institutions also must offer at least one eligible program. Eligible programs are those that lead to certain defined degrees or certificates, prepare students for gainful employment, and fulfill durational requirements.

Proprietary institutions must meet additional HEA requirements that are otherwise inapplicable to nonprofit institutions, including deriving at least 10% of their revenues from non-Title IV funds (also known as the 90/10 rule).

Specific criteria are required for Title IV participation if an institution offers distance or correspondence education. In addition to being authorized to operate within the state in which it is located, an institution offering distance or correspondence education must also be accredited by an agency recognized by ED as an accrediting agency able to evaluate distance education programs. Finally, an institution is ineligible to participate in Title IV programs if more than 50% of its courses are offered by correspondence or if 50% or more of its students are enrolled in correspondence courses.

As the 113
th Congress begins to consider HEA reauthorization, several issues related to institutional eligibility for Title IV programs may become a focus. These issues may include the sources from which proprietary institutions derive their revenue and whether current or new requirements should be applied to the rapidly expanding online education market.

This report first describes the types of institutions eligible to participate in Title IV programs and discusses the program integrity triad. Next, it discusses additional issues related to institutional eligibility, including recent statutory and regulatory changes pertaining to institutional eligibility requirements. Finally, this report explores some of the emerging issues that the 113
th Congress might consider.


Date of Report: July 23, 2013
Number of Pages: 36
Order Number: R43159
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Friday, August 9, 2013

The District of Columbia Tuition Assistance Grant (DCTAG) Program



Alexandra Hegji
Analyst in Social Policy

The District of Columbia College Access Act of 1999 (P.L. 106-98) was enacted on November 12, 1999, creating the District of Columbia Tuition Assistance Grant (DCTAG) program. The program provides grants to District of Columbia residents for undergraduate education. Grants for study at public institutions of higher education (IHEs) nationwide offset the difference between in-state and out-of-state tuition and fees, up to $10,000 per year and a cumulative maximum of $50,000. Students may also receive grants of up to $2,500 per year and a cumulative maximum of $12,500 for undergraduate study at Historically Black Colleges and Universities (HBCUs) nationwide and private IHEs in the Washington, DC, metropolitan area.


Date of Report: July 31, 2013
Number of Pages: 21
Order Number: R41313
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Thursday, August 8, 2013

Federal Student Loans Made Under the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers



David P. Smole
Specialist in Education Policy

The William D. Ford Federal Direct Loan (DL) program, authorized under Title IV, Part D of the Higher Education Act of 1965 (HEA), as amended, is the primary federal student loan program administered by the U.S. Department of Education (ED). The program makes available loans to undergraduate and graduate students and the parents of dependent undergraduate students to help them finance their postsecondary education expenses. Four types of loans are offered: Subsidized Stafford Loans for undergraduate students; Unsubsidized Stafford Loans for undergraduate and graduate students; PLUS Loans for graduate students and the parents of dependent undergraduate students; and Consolidation Loans through which borrowers may combine multiple loans into a single loan. For FY2014, ED estimates that 21.9 million loans (not including Consolidation Loans) totaling $112.1 billion will be made to students and their parents through the DL program. FFEL program loans are no longer being made; however, approximately $294 billion in outstanding FFEL program loans are due to be repaid over the coming years.

FFEL and DL program loans are low-interest loans, with maximum interest rates for each type of loan established by statute. Subsidized Stafford Loans are unique in that they are only available to undergraduate students demonstrating financial need. With certain exceptions, the federal government pays the interest that accrues on Subsidized Stafford Loans while the borrower is enrolled in school on at least a half-time basis, during a six-month grace period thereafter, and during periods of authorized deferment. Unsubsidized Stafford Loans and PLUS Loans are available to borrowers irrespective of their financial need; and borrowers are responsible for paying all the interest that accrues on these loans. FFEL and DL program loans have terms and conditions that may be more favorable to borrowers than private and other nonfederal loans. These beneficial terms and conditions include interest rates that are often lower than rates that might be obtained from other lenders, opportunities for repayment relief through deferment and forbearance, loan consolidation, and several loan forgiveness programs.

This report discusses major provisions of federal student loans made available through the DL program and previously made through the FFEL program. It focuses on provisions related to borrower eligibility, loan terms and conditions, borrower repayment relief, and loan default and its consequences for borrowers. These topics are principally discussed with regard to loans currently being made through the DL program, or made in the recent past through either program. The report also provides detailed historical information on annual and aggregate borrowing limits, loan fees, and student loan interest rates.



Date of Report: July 25, 2013
Number of Pages: 69
Order Number: R40122
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Wednesday, August 7, 2013

ESEA Reauthorization Proposals in the 113th Congress: Comparison of Major Features



Rebecca R. Skinner
Specialist in Education Policy

Jeffrey J. Kuenzi
Specialist in Education Policy

Cassandria Dortch
Analyst in Education Policy

Gail McCallion
Specialist in Social Policy


The Elementary and Secondary Education Act (ESEA) was last amended by the No Child Left Behind Act of 2001 (NCLB; P.L. 107-110). During the 113
th Congress, both the House and Senate have considered legislation to reauthorize the ESEA. On June 12, 2013, the Senate Health, Education, Labor, and Pensions (HELP) Committee considered and ordered reported the Strengthening America’s Schools Act (S. 1094) by a strictly partisan vote of 12-10. The House Education and Workforce Committee also considered and ordered reported a bill that would reauthorize the ESEA. On June 19, 2013, on a strictly partisan vote of 23-16, the Success for All Students Act (H.R. 5) was ordered reported. It is unclear whether S. 1094 or H.R. 5 will be considered on the Senate or House floors, respectively.

S. 1094 and H.R. 5 would take different approaches to reauthorizing the ESEA, most notably in three key areas:

1. Accountability for student achievement: Both S. 1094 and H.R. 5 would modify current accountability requirements related to student achievement, including eliminating the requirement to determine adequate yearly progress (AYP) and the requirement to apply a specified set of outcome accountability provisions to all schools, regardless of the extent to which they failed to make AYP. Both bills would continue to require that states have standards and assessments for reading, mathematics, and science, and would require that assessments measure student proficiency and growth. Both bills would require that reading and mathematics be included in each state’s accountability system, and would permit states to include science or other subjects in their accountability systems. S. 1094, but not H.R. 5, would require states to establish “ambitious and achievable” annual performance targets for the state, local educational agencies (LEAs), and public schools for each subject area and grade level that is assessed for accountability purposes. Performance targets would have to be established for student proficiency and student growth, as well as for English language proficiency for English learners and high school graduation rates. The Secretary would have to approve all performance targets. S. 1094 would require various interventions to be implemented in certain low-achieving schools, while H.R. 5 would not require that specific actions be taken to address issues in low-performing schools.

2. Teacher quality versus teacher effectiveness: Both S. 1094 and H.R. 5 scale back (or, in the case of H.R. 5, eliminate) existing teacher quality requirements, and each bill introduces requirements pertaining to how teachers’ performance is evaluated. H.R. 5 would eliminate current requirements related to “teacher quality,” which focus largely on ensuring the equitable distribution of qualified teachers and that teachers possess a baccalaureate degree and full state teaching certification, as well as demonstrated subject-matter knowledge in the areas in which the teacher teaches. S. 1094 would retain these requirements for new teachers and for all teachers until approved teacher evaluation systems are in place. S. 1094 would require all LEAs that receive Title II-A funds to develop and implement teacher and principal evaluation systems, known as professional growth and improvement systems. H.R. 5 would also require LEAs that receive Title II-A funds to develop and implement a teacher evaluation system but would not include school leaders in required evaluation systems. Under both bills, staff
being evaluated would have to be evaluated based, in part, on student achievement.

3. Targeted support for elementary and secondary education versus the use of a block grant: Each bill would consolidate some existing competitive grant programs, but H.R. 5 would consolidate a greater number of programs than S. 1094. At the same time, S. 1094 would create several new targeted grant programs, while H.R. 5 would greatly expand the use of block grant funding.



Date of Report: July 12, 2013
Number of Pages: 71
Order Number: R43146
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