THE WHITE HOUSE
Office of the Press Secretary
The Higher Education Amendments of 1998:
Five Victories for the Clinton-Gore Administration
October 7, 1998
Today, President Clinton is signing into law five major new initiatives that he proposed, along with other important provisions extending the Higher Education Act. The new initiatives will:
slash the student loan interest rate
help disadvantaged children prepare for college
improve teacher preparation and recruitment
promote high-quality distance education
create a new model for efficient government
The Higher Education Act, originally enacted in 1965, authorizes many of the Federal government's programs to increase access to college, including Pell Grants, student loans, and Federal Work-Study, as well as programs to improve teacher training and promote innovation. The Act is reviewed every five years. In response to the Administration's requests, this year the reauthorization:
Proposal: "We are proposing improvements in the student loan program
that will lower the cost of college for millions of students and
their families while preserving their access to the loans they
need." [Vice President Gore, Press Briefing, February 25, 1998]
Result: As proposed by the President and Vice President, the
legislation extends for 5 years the new low student interest
rate on new college loans, now 7.46% instead of 8.25%, saving
students $11 billion on loans made over the next five years. The
typical student borrower at a 4-year college, who graduates with
$13,000 in debt, will save about $700 over a ten-year repayment
period. Borrowers have four months to refinance their
outstanding loans at the new rate. The Administration continues
to oppose the excessive payments to lenders and intermediaries
included in the bill, and supports extending the refinancing
window beyond the four month period.
2. HELPS DISADVANTAGED CHILDREN GEAR UP FOR COLLEGE
Proposal: "I also ask this Congress to support our efforts to enlist
colleges and universities to reach out to disadvantaged children,
starting in the 6th grade, so that they can get the guidance and
hope they need so they can know that they, too, will be able to
go on to college." [President Clinton, State of the Union
Address, January 27, 1998]
Result: The legislation launches a new national effort,
incorporating the President's High Hopes for College initiative,
to help disadvantaged students prepare for college. Called GEAR
UP, this program provides competitive grants to colleges that
partner with high-poverty middle schools and the community to
tell families early about the financial aid that is available for
college, and then to provide long-term mentoring, tutoring, and
other assistance to make the dream of college a reality. Grants
are also provided to states to encourage broad efforts to provide
early information and counseling about college opportunities.
3. IMPROVES TEACHER PREPARATION AND RECRUITMENT
Proposal: "I will forward to the Congress a proposal for a new national
effort to attract quality teachers to high-poverty communities by
offering scholarships for those who will commit to teach in those
communities for at least three years. . . Our proposal also
includes funds to strengthen teacher preparation programs so that
those who go into teaching are better prepared to teach their
students." [President Clinton, NAACP National Convention,
July 17, 1997]
Result: The legislation includes the Administration's proposals,
and more: Improves teacher preparation through grants to
partnerships -- modeled after the Administration's proposed
Lighthouse Partnerships -- between teacher education institutions
and school districts to produce teachers who have strong teaching
skills, are highly competent in the academic content areas in
which they plan to teach, and know how to use technology as a
tool for teaching and learning.
Recruits additional teachers for high-need areas through the
Administration's proposed grants to partnerships between
high-quality teacher education programs and local schools to
offer scholarships, support, and services to recruit and prepare
teachers to serve for at least three years in high-need schools.
Supports state-level efforts to improve teacher quality
through State Teacher Quality Enhancement grants to strengthen
state teacher certification standards, create alternative
pathways into teaching, hold higher education institutions
accountable for the quality of teachers they prepare, and recruit
high-quality teachers.
Strengthens accountability in teacher education by requiring
that states and teacher education institutions report on teacher
preparation, including their students' performance on teacher
licensing exams.
Forgives up to $5,000 in loans for those who teach for five
years in a low-income community.
4. PROMOTES HIGH QUALITY DISTANCE EDUCATION
Proposal: "Valuable technologies also are important for providing
opportunities in higher education at a time when college is
becoming ever more crucial. . . .This is why [we] proposed a
number of changes to the Higher Education Act that will broaden
learning opportunities." [Secretary Riley, U.S. Distance Learning
Association National Conference, November 5, 1997]
Result: The bill includes the Administration's Learning Anytime
Anywhere Partnership (LAAP) initiative, and expands student
aid eligibility for distance learners. LAAP awards
competitive grants to partnerships between schools and other
entities to: create new distance learning models, explore
the efficiencies and cost reductions possible through
institutional partnerships, and develop innovative measures
of student achievement in distance education. The
legislation also expands student aid eligibility for distance
learners, a goal proposed by the Administration, through
demonstration programs that waive some student aid
restrictions to allow more non-traditional students to obtain
higher education, including full-time workers, parents,
people in rural areas, and people with disabilities.
5. TAKES AN HISTORIC STEP TOWARD A NEW MODEL OF GOVERNMENT
Proposal: "We're going to dramatically change the way many agencies
provide their services. Today, I'm proposing to create within
existing departments something we call "Performance-based
Organizations.". . . These PBOs would be run by chief executives
who sign contracts and will be personally accountable for
delivering results. . . Their pay and job security will be tied
directly to performance." [Vice President Gore, National Press
Club, March 4, 1996]
Result: The bill creates the federal government's first-ever PBO, a
concept promoted by the Reinventing Government effort spearheaded
by the Vice President. The delivery of Federal student aid --
loans, grants, work-study and other assistance -- will be led by
an executive with expertise in information technology and
experience with financial systems, who reports directly to the
Secretary and has new administrative flexibility in exchange for
increased accountability for results. The Secretary will
continue to be responsible for setting student aid policy.