What Is the Higher Education Act of 1965?
The Higher Education Act of 1965 (HEA) is a landmark legislation aimed at providing financial aid to post-secondary students and enhancing the educational infrastructure of colleges and universities in the United States.
The HEA boosted federal funding for post-secondary institutions, established scholarship programs, offered low-interest loans to students, and created the National Teachers Corps.
Enacted on Nov. 8, 1965, as part of President Lyndon B. Johnson’s Great Society initiative, the HEA has undergone multiple reauthorizations by Congress over the years.
Up for reauthorization since its expiration in 2013, the HEA remains operational through temporary extensions, ensuring key programs like Pell Grants and Stafford loans remain accessible.
Understanding the Higher Education Act of 1965
President Johnson championed the HEA to expand educational opportunities for lower- and middle-income families, support struggling smaller colleges, and enhance library resources at higher education institutions.
Celebrated by the National Education Association for making college education affordable through need-based grants, work-study programs, and federal student loans, the HEA also established TRIO to assist disadvantaged students from middle school to graduate school.
Titles of the HEA
The HEA comprises several titles:
Title I: Funds extension and continuing education programs.
Title II: Authorizes grants for teacher recruitment, education, and training.
Title III: Supports developing institutions.
Title IV: Provides student aid through scholarships, low-interest loans, and work-study programs.
Title V: Enhances teaching quality.
Title VI: Boosts undergraduate instruction.
Title VII: Supports graduate education and innovation in post-secondary education.
Title VIII: Focuses on various post-secondary and graduate-level educational aspects.
As a dynamic legislation, the HEA has evolved through reauthorizations and amendments, leading to the introduction of new title initiatives.
$1.7 Trillion
Americans owe a total of $1.7 trillion in student debt. Pell Grants, which once covered up to 50% of college costs, now only cover around 30% starting from the 2022-2023 academic year.
What the HEA Provides
The HEA offers a range of financial aid opportunities to post-secondary students in the U.S., including programs such as Pell Grants and Stafford loans that were initiated as a result of this legislation.
Aid
Pell Grants, provided without repayment obligations, are federally funded grants for undergraduate students. Award amounts are determined based on financial need, school costs, and student enrollment status. Legislative updates set the maximum funding per recipient.
Loans
Stafford loans, available as direct subsidized or unsubsidized loans, are options for students requiring financial assistance.
Direct Subsidized Loans
Direct subsidized loans, geared toward undergraduates with financial need, are disbursed based on school expenses. The U.S. Department of Education covers the loan interest during enrollment and for six months post-graduation.
Direct Unsubsidized Loans
Direct unsubsidized loans, available to both graduate and undergraduate students without financial requirements, are determined by the college’s assessment of other financial aid received. Borrowers are responsible for all interest payments on these loans.
Though technically phased out, the term “Stafford Loans” still references direct subsidized and unsubsidized loans under the William D. Ford Federal Direct Loan Program.
Loans under the Federal Family Education Loan Program, including Stafford Loans, ceased after July 1, 2010, yet the terminology persists for loans supported by the William D. Ford Federal Direct Loan Program.
The New SAVE Program
President Biden introduced the SAVE program, an income-driven repayment plan unveiled on June 30, 2023, as a response to the Supreme Court’s decision halting his prior student loan forgiveness initiative. SAVE features enhanced financial advantages for student loan borrowers, with key components starting in the summer of 2023 and full regulations effective from July 1, 2024. For further details on SAVE, refer to the Department of Education’s fact sheet.
HEA Reauthorization Attempts
Originally reauthorized every five years until 2008, the HEA has not seen formal reauthorization since 2013 but continues to operate through temporary extensions.
Current Status of the HEA
Although technically expired in 2013, the HEA’s programs persist while Congress deliberates potential modifications.
Progress towards a reauthorization and update of the HEA in 2020 was interrupted by the COVID-19 pandemic, with proposals including simplifying student aid applications and expanding Pell Grant limits.
How Did the HEA Contribute to Post-Secondary Education?
Recognized as the foundation of college affordability, the HEA facilitated Pell Grants for 34% of college undergraduates and assisted over 44 million Americans in accessing federal student loans.
What Is Title IV of the HEA?
Title IV supports and finances scholarships, low-interest loans, and work-study programs for students in eligible U.S. colleges and universities, featuring well-known programs like Pell Grants and Stafford loans.
What Type of School Does the Term Higher Education Refer to?
Higher education encompasses studies beyond high school, leading to degrees, diplomas, or certificates, offered by colleges, universities, professional schools, and technical institutions.
What Is a Title I School?
Within the HEA context, a Title I school is a post-secondary institution receiving federal aid directly to enhance facilities or educational programs. It differs from Title I in the Elementary and Secondary Education Act, supporting economically disadvantaged public schools.
The Bottom Line
Despite the passage of time, the core aim of the Higher Education Act of 1965 endures—to make college education accessible to Americans of all backgrounds, catering to generations of students seeking academic advancement.
Correction—Aug. 11, 2023: An earlier version of this article incorrectly stated Title II’s purpose as enhancing library collections, while its actual function is to fund teacher recruitment, education, and training.
