{“related terms”:[“Federal Student Aid”,“TRIO Programs”,“Title I Schools”,“Post-Secondary Education”],“keywords”:“Higher Education Act, 1965, HEA, federal financial aid, Pell Grants, Stafford Loans, post-secondary education, college affordability, student loans, educational resources”,“description”:“Discover how the Higher Education Act of 1965 continues to shape the landscape of American higher education by providing financial aid and strengthening institutional resources.”,“categories”:[“Education”,“Public Policy”,“Higher Education”,“Financial Aid”],“title”:“Unlocking the Future: The Higher Education Act of 1965 Demystified”,“content”:"### What is the Higher Education Act of 1965?
The Higher Education Act of 1965 (HEA) is landmark legislation designed to provide financial assistance to U.S. post-secondary students and strengthen the educational resources of colleges and universities across the country. The HEA increased federal funding for higher education, established various scholarship programs, provided low-interest student loans, and created the National Teachers Corps.
Enacted as part of President Lyndon B. Johnson’s Great Society agenda, the law was signed on November 8, 1965, and has been reauthorized multiple times. Though it officially expired in 2013, Congress has kept its programs running through temporary extensions, ensuring continued availability of popular financial aid options such as Pell Grants and Stafford Loans.
Key Takeaways
- Full Title: Higher Education Act of 1965
- Enacted By: U.S. Congress
- Purpose: Financial aid for students, institutional support for colleges and universities
- Notable Programs: Pell Grants, Stafford Loans
- Status: Expired in 2013; ongoing through temporary extensions
Understanding the Higher Education Act of 1965
President Johnson urged the passage of the HEA with goals of increasing educational opportunities for children of lower- and middle-income families, aiding cash-strapped colleges, and improving library resources for higher education. In 2015, on its 50th anniversary, the National Education Association praised the HEA for making college education affordable for millions of Americans by establishing need-based grants, work-study opportunities, and federal student loans. Programs like TRIO were also launched to support low-income and disadvantaged students through their education journey from middle school through graduate school.
Titles of the HEA
The act is organized into eight titles, each targeting a specific educational area:
- Title I: Funding for extension and continuing education programs
- Title II: Grants for recruiting, educating, and training teachers
- Title III: Strengthening developing institutions
- Title IV: Student assistance via scholarships, loans, and work-study programs
- Title V: Enhancing teaching quality
- Title VI: Improving undergraduate instruction
- Title VII: Graduate education programs and innovation in post-secondary education
- Title VIII: Various provision for higher and graduate education
The HEA’s Financial Aid Programs
The HEA launched numerous financial aid options to assist students attending post-secondary schools in the U.S. Among the most notable are Pell Grants and Stafford Loans.
Pell Grants
Pell Grants provide federal funding to undergraduate students demonstrating financial need. These grants do not require repayment, and the amount awarded depends on the student’s financial status, college costs, and enrollment status. The maximum funding per recipient is determined by the legislation reauthorizing the grant program.
Stafford Loans
Stafford Loans, available as direct subsidized or direct unsubsidized loans, cater to students requiring financial aid. While direct subsidized loans have their interest covered by the Department of Education during enrollment and a six-month grace period after leaving school, direct unsubsidized loans do not. Students are responsible for all interest payments on the latter. Although Stafford Loans per se ceased under the Federal Family Education Loan (FFEL) Program in 2010, the terms often still refer to direct loans under the William D. Ford Federal Direct Loan Program.
The New SAVE Program
Introduced by President Biden on June 30, 2023, as an income-driven repayment plan following the Supreme Court’s decision to halt the previous loan forgiveness plan, the SAVE program offers enhanced benefits. Rolling out in phases during the summer of 2023, with full regulations effective by July 1, 2024; it signifies a significant update to the student loan repayment landscape.
HEA Reauthorization Attempts
The HEA underwent regular reauthorizations and amendments every five years from its passage in 1965 until 2008. Though it has not been formally reauthorized since 2013, its programs continue under temporary extensions. At the onset of the COVID-19 pandemic, Congress was near a renewed reauthorization that proposes a simplified student aid application process and increased maximum Pell Grants.
How Did the HEA Contribute to Post-Secondary Education?
Regarded by the National Education Association as the cornerstone of college affordability for Americans, the HEA currently benefits about 34% of college undergraduates via Pell Grants. More than 44 million Americans have taken out federal student loans as part of this legislative initiative.
What is Title IV of the HEA?
Title IV is vital legislation authorizing scholarships, low-interest loans, and work-study programs at eligible colleges and universities. Some of its high-profile programs include Pell Grants and Stafford Loans.
What Type of School Does ‘Higher Education’ Refer to?
Higher education typically refers to advanced studies beyond high school, resulting in a degree, diploma, or certificate from colleges, universities, professional schools, or technical schools.
What is a Title I School?
Under the HEA, a Title I school is a post-secondary institution eligible for direct federal assistance to bolster its library or academic programs. Note that the HEA Title I should not be conflated with Title I of the Elementary and Secondary Education Act, aimed at funding public schools in underprivileged areas.
The Enduring Legacy of the HEA
Generations of American students have benefitted from the accessibility and affordability directly resulting from the Higher Education Act of 1965. Despite changing times and an expired official reauthorization, its mission remains alive through temporary extensions, continually supporting students in their quest for higher education.
Correction: A previous version incorrectly stated that Title II funds enhanced library collections. Title II actually supports teacher recruitment, education, and training.",“tags”:[“Higher Education Act”,“Pell Grants”,“Stafford Loans”,“Federal Financial Aid”,“Education Policy”]}
Related Terms: Federal Student Aid, TRIO Programs, Title I Schools, Post-Secondary Education.
References
- Pennsylvania State University, College of Information Sciences and Technology. “The National Teacher Corps: A Study of Shifting Goals and Changing Assumptions”, Page 932.
- Congressional Research Service. “The Higher Education Act (HEA): A Primer”.
- LBJ Presidential Library. “Higher Education Act”.
- Rancho Santiago Community College District. “2019 Federal Legislative Priorities”, Page 2.
- American Council on Education. “Renewing the Higher Education Act”.
- The Pell Institute. “Do You Know TRIO? A Trio History Fact Sheet”.
- National Education Association. “At 50, Higher Education Act Remains the Cornerstone of College Affordability”.
- Urban Institute. “What Better Data Reveal About Pell Grants and College Prices.”
- U.S. Government. “Public Law 92-318 - June 23, 1972”, Page 248.
- Federal Reserve Bank of St. Louis, FRED. “Student Loans Owned and Securitized”.
- Congressional Research Service. “Federal Pell Grant Program of the Higher Education Act: Primer”.
- Federal Student Aid. “The U.S. Department of Education Offers Low-Interest Loans to Eligible Students to Help Cover the Cost of College or Career School”.
- Federal Student Aid. “Stafford Loans”.
- Department of Education. “How the New SAVE Plan Will Transform Loan Repayment and Protect Borrowers.”
- The American Association of Collegiate Registrars and Admissions Officers. “Higher Education Act”.
- Education Data Initiative. “Pell Grant Statistics.”
- Sallie Mae. “Everything you need to know about a federal Stafford loan.”
- U.S. Department of Education. “Parents / Prepare My Child for School”.
