Title: To provide for reconciliation pursuant to section 601 of the concurrent resolution on the budget for fiscal year 2008.
House Reports: 110-210; Latest Conference Report: 110-317 (in Congressional Record H10168-10181)Highlights: Eliminates the "tuition sensitivity provision" which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education (IHEs) even if their income is low enough otherwise to qualify for the maximum award. Authorizes and appropriates $5 million for FY2008 to cover the costs of eliminating tuition sensitivity. Extends from three to six years the limit on the deferral of Federal Family Education Loans (FFELs), Direct Loans (DLs), and Perkins loans (PLs) when borrowers are suffering economic hardship. Establishes a DL forgiveness program under which borrowers who, after October 1, 2007, have made 120 payments under income-based or standard repayment plans while employed in certain public service jobs may have 1/10th of their outstanding loan forgiven for each year during which they earned $65,000 or less. Increases students' eligibility for financial aid under title IV of the HEA by increasing, by academic year 2012-2013, the income protection allowance. Establishes a Secondary School Graduation and College Enrollment program.

Grant eligibility: Requires the Secretary to award competitive five-year matching grants to consortia of nonprofit organizations and IHEs that have been effective in raising secondary school graduation rates and postsecondary enrollment rates, in order to operate programs of assistance to LEAs with secondary school graduation rates of 70% or less. College students studying to become teachers are eligible to receive grants of $4,000/year for 4 years, given that they agree to teach at least 4 years after graduation at a high-need school.

ASPIRA Policy Position

ASPIRA supports the elimination of the Pell Grant cap for students attending low-tuition colleges. It also supports extending the period after which students must start repaying Federally-supported student loans access and affordability of higher education.  It allows students to enter the workforce and be in a better position to repay the loans. Moreover, with the extended grace period, more students will be willing to take federal loans, increasing college attendance of low-income students. ASPIRA also supports provisions to lower the payback burden (e.g., DL forgiveness) of students who already have loans.

ASPIRA supports the grant programs.