Legislative Background
Recent Action on Federal Student Aid
In the current (109th) Congress, the reauthorization of student financial aid programs under the Higher Education Act (HEA) has become intertwined with the annual budget reconciliation process. (This is the process whereby Congress issues directives for policy changes in entitlement programs and tax laws to achieve spending and revenue goals set out in a budget resolution.) Student aid programs under HEA were due to expire on December 31, 2005. The House and Senate included some HEA reforms in the final budget reconciliation bill, S. 1932, known as the Deficit Reduction Act of 2005, which the President signed into law on…
