Educational Accountability and Secretarial Waiver Authority Under Section 9401 of the Elementary and Secondary Education Act

Rebecca R. Skinner
Specialist in Education Policy

Jody Feder
Legislative Attorney

Section 9401 of the Elementary and Secondary Education Act (ESEA) provides the Secretary of Education with broad waiver authority with respect to programs authorized under the act. The Secretary has used the authority provided under Section 9401 to grant numerous waivers over time, including waivers of accountability and general administrative provisions. On September 23, 2011, President Obama and the Secretary announced the availability of an ESEA flexibility package for states and described the principles that states must meet to obtain the included waivers. The waivers would apply to school years 2011-2012, 2012-2013, and 2013-2014. States would have the option to apply for a one-year waiver extension for the 2014-2015 school year.

The following waivers are included in the ESEA flexibility package: 

1.      Flexibility regarding the 2013-2014 timeline for determining adequate yearly progress 

2.      Flexibility in implementation of school improvement requirements 

3.      Flexibility in implementation of local educational agencies (LEAs) improvement requirement 

4.      Flexibility for rural LEAs 

5.      Flexibility for schoolwide programs 

6.      Flexibility to support school improvement 

7.      Flexibility for Reward Schools 

8.      Flexibility regarding highly qualified teacher (HQT) improvement plans 

9.      Flexibility to transfer certain funds 

10.  Flexibility in the use of School Improvement Grant funds to support priority schools 

The waivers would exempt states from various academic accountability requirements, teacher qualification-related requirements, and funding flexibility requirements that were enacted through the No Child Left Behind Act of 2001 (NCLB; P.L. 107-110). State educational agencies (SEAs) could also apply for an optional waiver related to the 21st Century Community Learning Centers program. However, in order to receive the waivers, SEAs must agree to meet four principles established by ED for “improving student academic achievement and increasing the quality of instruction.” The four principles, as stated by ED, are as follows: (1) college- and career-ready expectations for all students; (2) state-developed differentiated recognition, accountability, and support; (3) supporting effective instruction and leadership; and (4) reducing duplication and unnecessary burden.

Taken collectively, the waivers and principles included in the ESEA flexibility package amount to a fundamental redesign by the Administration of the accountability and teacher-related requirements included in current law. Given that most states have applied for, or signaled an intent to apply for, the waivers, the ESEA flexibility package may be in effect in many states by the end of the current school year. If Congress continues to work on ESEA reauthorization during the 112th Congress, it is possible that provisions included in any final bill may be similar to or override the waivers and principles established by the Administration.


Date of Report: January 10, 2012
Number of Pages: 49
Order Number: R42328
Price: $29.95

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Federal Support for Academic Research

Christine M. Matthews
Specialist in Science and Technology Policy

From the time of Vannevar Bush and his 1945 report on U.S. science policy, academic research has played a role in the nation’s economy. Vannevar Bush’s report, Science the Endless Frontier, maintained that major investments in research should be made to the nation’s universities. He stated that the research capacity of the colleges and universities was significantly important to long-term national interests. Currently, some Members of Congress have expressed concern about the health and competitiveness of the nation’s colleges and universities. There are those who continue to maintain that the long-term competitiveness of the nation is linked to the strength of the academic research infrastructure. It has been shown that academic research is integrated into the economy and impacts at both the local and national level. By one estimate, approximately 80% of leading industries have resulted from research conducted at colleges and universities.

Colleges and universities are the primary performers of basic research, with the federal government being the largest funding source. In FY2008, the federal government provided approximately 60% of an estimated $51.9 billion of research and development funds expended by academic institutions. When measured in current dollars, federal academic support increased by 2.5% between FY2007 and FY2008. When inflation is taken into account, it equates to an increase of 0.2% from FY2007 to FY2008 following two years of decline in constant dollars since FY2005. An issue before the 112th Congress is that with further budget reductions expected, how does the nation best reduce the budget while adjusting the support for research conducted at colleges and universities?


Date of Report: January 26, 2012
Number of Pages: 25
Order Number: R41895
Price: $29.95

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Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.

Educational Accountability and Secretarial Waiver Authority Under Section 9401 of the Elementary and Secondary Education Act

Rebecca R. Skinner
Specialist in Education Policy

Jody Feder
Legislative Attorney

Section 9401 of the Elementary and Secondary Education Act (ESEA) provides the Secretary of Education with broad waiver authority with respect to programs authorized under the act. The Secretary has used the authority provided under Section 9401 to grant numerous waivers over time, including waivers of accountability and general administrative provisions. On September 23, 2011, President Obama and the Secretary announced the availability of an ESEA flexibility package for states and described the principles that states must meet to obtain the included waivers. The waivers would apply to school years 2011-2012, 2012-2013, and 2013-2014. States would have the option to apply for a one-year waiver extension for the 2014-2015 school year.

The following waivers are included in the ESEA flexibility package: 

1.       Flexibility regarding the 2013-2014 timeline for determining adequate yearly progress 

2.       Flexibility in implementation of school improvement requirements 

3.       Flexibility in implementation of local educational agencies (LEAs) improvement requirement 

4.       Flexibility for rural LEAs 

5.       Flexibility for schoolwide programs 

6.       Flexibility to support school improvement 

7.       Flexibility for Reward Schools 

8.       Flexibility regarding highly qualified teacher (HQT) improvement plans 

9.       Flexibility to transfer certain funds 

10.   Flexibility in the use of School Improvement Grant funds to support priority schools 

The waivers would exempt states from various academic accountability requirements, teacher qualification-related requirements, and funding flexibility requirements that were enacted through the No Child Left Behind Act of 2001 (NCLB; P.L. 107-110). State educational agencies (SEAs) could also apply for an optional waiver related to the 21st Century Community Learning Centers program. However, in order to receive the waivers, SEAs must agree to meet four principles established by ED for “improving student academic achievement and increasing the quality of instruction.” The four principles, as stated by ED, are as follows: (1) college- and career-ready expectations for all students; (2) state-developed differentiated recognition, accountability, and support; (3) supporting effective instruction and leadership; and (4) reducing duplication and unnecessary burden.

Taken collectively, the waivers and principles included in the ESEA flexibility package amount to a fundamental redesign by the Administration of the accountability and teacher-related requirements included in current law. Given that most states have applied for, or signaled an intent to apply for, the waivers, the ESEA flexibility package may be in effect in many states by the end of the current school year. If Congress continues to work on ESEA reauthorization during the 112th Congress, it is possible that provisions included in any final bill may be similar to or override the waivers and principles established by the Administration.


Date of Report: January 24, 2012
Number of Pages: 48
Order Number: R42328
Price: $29.95

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Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.

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 costs. Several types of loans are offered through the DL program: Subsidized Stafford Loans and 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 their loans into a single loan. For FY2012, ED estimates that 25.1 million loans (not including Consolidation Loans) totaling $124.3 billion will be made to students and their parents through the DL program.

Until July 1, 2010, Subsidized Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Consolidation Loans were also available through the Federal Family Education Loan (FFEL) program, authorized under Title IV, Part B of the HEA. The SAFRA Act, part of the Health Care and Education Reconciliation Act of 2010 (HCERA; P.L. 111-152), terminated the authority to make new loans under the FFEL program after June 30, 2010. While new loans may no longer be made through the FFEL program, approximately $384 billion in FFEL program loans are outstanding and are due to be repaid over the coming years.

Under the DL program, which has effectively replaced the FFEL program, loans are made with capital provided by the federal government. Under the FFEL program, loans were made with capital provided by private lenders, and the federal government guaranteed lenders against loss through borrower default, death, permanent disability, or, in limited instances, bankruptcy. When both programs were authorized and making available essentially the same types of loans, institutions of higher education (IHEs) were permitted to select the program of their choice.

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 students demonstrating financial need. The Secretary of Education pays the interest that accrues on Subsidized Stafford Loans while borrowers are in school, during a six-month grace period, and during authorized periods of 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 non-federal 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.

In recent years, numerous changes have been made to the terms and conditions of FFEL and DL program loans. The Budget Control Act of 2011 (P.L. 112-25) eliminated the availability of Subsidized Stafford Loans to graduate and professional students for periods of instruction beginning on or after July 1, 2012; and the availability of certain repayment incentives for loans made on or after July 1, 2012. The Consolidated Appropriations Act, FY2012 (P.L. 112-74) eliminated interest subsidies during the six-month post-enrollment grace period on Subsidized Stafford Loans disbursed to undergraduate students between July 1, 2012, and June 30, 2014.


Date of Report: January 11, 2012
Number of Pages: 69
Order Number: R40122
Price: $29.95

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Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.