Higher Ed Roundup: Week of June 16 – June 20

Compromise Reached on Major Expansion of G.I. Benefits

Bill Would Prevent Lender Discrimination

New SAT Little Better than the Old One

Compromise Reached on Major Expansion of G.I. Benefits

The White House and Congressional Democrats reached a compromise this week on legislation that would significantly increase education benefits for returning veterans, averting a showdown that could have been politically costly for the Republican Party heading into the Presidential election. Under the measure, which was originally sponsored by Sen. Jim Webb (D-VA), military personnel who have completed three years of service after 2001 would be eligible for scholarships covering up to the full cost of attendance at the most expensive public college in the veterans’ home states. They would also receive a housing stipend, book allowance and money for tutorial assistance. President Bush had vowed to veto the measure, saying that the proposal, which would more than double the value of the current benefit to about $90,000, was too costly and could harm the country’s all-volunteer force by enticing soldiers to leave the military to pursue their studies. The White House dropped its opposition to the measure last week, after Democratic leaders agreed to insert a provision sought by Republican lawmakers that would allow military personnel who agree to serve for at least 10 years to transfer their educational benefits to their children or spouses.Shortly after the compromise was reached, the House overwhelming approved the bill. The Senate is expected to take a final vote on the legislation next week and then send it to the President for his signature.

Bill Would Prevent Lender Discrimination

Democratic Senators Christopher Dodd of Connecticut and Patty Murray of Washington introduced legislation on Tuesday that would bar lenders from refusing to provide federal loans to students based on the type of institution they attend. The Senators decided to introduce the “Preventing Student Loan Discrimination Act” after reading reports that some of the nation’s biggest banks, such as Citibank, have decided to stop making loans at community colleges and some state universities. “Lenders offering loans backed by taxpayer dollars shouldn’t be able to discriminate against certain schools or students,” Senator Murray said in a statement. Some lenders and financial aid administrators, however, warned that the measure could push more lenders out of the market if it forces them to make potentially unprofitable loans. Meanwhile, Sen. Edward Kennedy (D-MA) sent a letter to community college leaders urging them to consider switching to the Direct Loan Program “in order to ensure students can access student loans even if private lenders refuse to offer federal loans to their students.”

New SAT Little Better than the Old One

The addition of a new writing section to the SAT “did not substantially change” the aptitude test’s ability to predict first year college grades, according to a recent evaluation by the College Board. In 2005, The College Board added the writing section to the SAT amid criticism that the old test was not an accurate predictor of college success and that it gave an unfair advantage to wealthier students who could afford coaching. The report, based on the test scores and grades of 150,000 students at schools across the country, found that the new exam is little better than the old one and that high school grades remain the most accurate predictor of academic success for students in their freshman year of college.