Need-Based Educational Aid Act of 2015 Introduced By Grassley, Leahy, Smith & Johnson
WASHINGTON - Leading members of the Senate and House Judiciary Committees introduced legislation Tuesday to extend an antitrust exemption that allows certain colleges and universities to collaborate on issues of need-based financial aid.
The Need-Based Educational Aid Act of 2015 allows colleges and universities that admit students on a need-blind basis to collaborate on the formula they use to determine how much families can pay for college.
This exemption was first enacted in 1994, and has been reauthorized by Congress three times without opposition, most recently in 2008. In addition to collaborating on a common formula for calculating ability to pay for college, higher education institutions are permitted to agree to award aid only on the basis of financial need and use a common application for aid.
The current exemption expires in September. The bipartisan, bicameral legislation introduced today by Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa), Ranking Member Patrick Leahy (D-Vt.), Congressman Lamar Smith (R-Texas), and Congressman Hank Johnson (D-Ga.), who both serve on the House Judiciary Committee, extends the exemption another seven years. The bill also removes a previously permitted activity that no school has ever used.
"By explicitly permitting these specific antitrust activities, Congress prevents needless and costly litigation. It's an important provision that helps ensure that the colleges and universities covered by this section of the law admit students without regard to ability to pay," Senator Grassley said. "Allowing the use of these common principles helps make available need-based aid to low and middle income families and increases access to higher education, without causing harm to competition."
"Exceptions to our antitrust laws require meaningful oversight and I have worked with my cosponsors to seriously consider the impact of the Need-Based Educational Aid Act of 2015," Senator Leahy said. "This bill allows the covered colleges and universities to focus their resources on ensuring the most qualified students can attend some of the best schools in the nation, regardless of family income. This is an important goal, and one that we should all support."
"In today's world, higher education is an increasingly essential component to career success. I believe all students, regardless of their financial situation, should have access to an affordable college education. Most Americans would never imagine that anti-trust laws could come between students and an affordable higher education," Congressman Smith said. "Our bill will make it easier for students to obtain need-based assistance to pay for college."
"The Need-Based Educational Aid Act of 2015 is critical to ensuring the continued use of a common, need-based formula for awarding financial aid to students at some of our nation's leading colleges and universities," Congressman Johnson said. "Importantly, this bill's limited exception to the antitrust laws preserves a level playing field for students at these institutions through a need-blind admissions process, empowering low-income and minority students to access a first-rate education."
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Colleges & Universities Support The Need-Based Educational Aid Act of 2015
· "Section 568 is a no-cost provision of federal law that increases access to higher education. First enacted in 1994 and reauthorized several times since then, the provision facilitates thoughtful collaboration by qualified financial aid professionals on need-blind financial aid policies. This provision has enabled 568 institutions to maximize allocation of our significant institutional aid resources and to ensure that those funds are targeted to benefit the students with the greatest financial need and to reduce or, in some cases, eliminate debt loads on graduation." 568 Presidents' Group
· "The Need-Based Educational Aid Act will ensure that Middlebury continues to attract and admit the best students without regard to their families' financial situation. We applaud Senator Leahy's leadership on this important, bipartisan issue." Kim Downs, Associate Vice President for Student Financial Services, Middlebury College (Vermont)
· "Chairman Grassley's bipartisan legislation will enable Grinnell to continue its dedication to equality of educational access, by facilitating thoughtful collaborations regarding need-based aid for families to pay for college. We thank Senator Grassley for introducing this important legislation." Joe Bagnoli, Vice President for Enrollment and Dean of Admission and Financial Aid, Grinnell College (Iowa)
