Higher Education Bill Passes Senate

Includes Amendment on Welfare Work Requirements

By Joan Crigger and Josie Hathway

etc4@usmayors.org

On July 9, the Senate voted 96-1 to pass legislation that authorizes $108 billion over the next five years for federal higher education initiatives. The Senate inserted its version into the measure that the House passed on May 6. The bill, HR 6, which extends programs under the Higher Education Act of 1965, includes the following provisions:

• Reduced interest rates on student loans & new subsidies to banks
• Set interest rates for '98 - '99 academic year
• Increased maximum Pell Grant amounts
• Elimination of teacher training programs & creation of $300 million in competitive block grants for teacher training
• Forgiving up to $10,000 in student debt for teachers who work in distressed areas

Also included in the bill is an amendment by Senator Wellstone (MN) that gives States the option of allowing welfare recipients to enroll in two years of vocational or post-secondary education without losing monthly benefits. This amendment also exempts teen parents from the required work activities. Currently the law allows one year of vocational training as an allowable work activity and includes teen parents in the 30 percent requirement of welfare recipients involved in work activities which will increase to 50 percent by 2002.

In anticipation of a conference with the House, The Senate has named the entire Committee on Labor and Human Resources as conferees.