What Is the Higher Education Act of 1965?
The Higher Education Act of 1965 (HEA) is a law designed to provide financial assistance to post-secondary school students and to strengthen the educational resources of the colleges and universities of the United States.
The HEA increased the amount of federal money given to post-secondary school institutions, developed scholarship programs, provided low-interest loans to students, and founded the National Teachers Corps.
Part of President Lyndon B. Johnson’s Great Society domestic agenda, the act was signed into law on Nov. 8, 1965, and has been reauthorized by Congress a number of times since.
The act expired in 2013 and Congress has been unable to reach an agreement on its reauthorization. However, it has been running on temporary extensions since then, with now-familiar programs including Pell Grants and Stafford loans remaining available.
Key Takeaways
- The Higher Education Act of 1965, or HEA, has failed to gain Congressional reauthorization since 2013 but continues to operate on temporary extensions.
- The HEA provides financial assistance to college students, including subsidized grants and loans to qualified post-secondary school students.
- Pell Grants and Stafford Loans are among the programs created through the HEA.
- The HEA also directly funds college continuing education programs, school libraries, and teaching resources.
Understanding the Higher Education Act of 1965
President Johnson advocated the passage of the Higher Education Act with the stated goals of increasing educational opportunities for the children of lower- and middle-income families, bolstering cash-strapped small colleges, and improving library resources at higher education institutions.
On the 50th anniversary of its passage in 2015, the National Education Association (NEA) lauded the program for making a college education affordable to “millions of smart, low- and middle-income Americans by establishing need-based grants, work-study opportunities , and federal student loans.”
It also enabled the establishment of a program called TRIO, which assists educational programs designed to reach low-income and disadvantaged students from middle school through graduate school.
Titles of the HEA
The act has the following titles:
Title I: Provides funding for extension and continuing education programs.
Title II: Authorizes grants for the purpose of recruiting, educating, and training teachers.
Title III: Contains provisions for strengthening developing institutions.
Title IV: Provides student assistance through scholarships, low-interest loans, and work-study programs.
Title V: Contains provisions for improving the quality of teaching.
Title VI: Contains provisions for improving undergraduate instruction.
Title VII: Contains provisions for graduate education programs and innovation in post-secondary school education.
Title VIII: Contains provisions focused on a variety of post-secondary and graduate level educational topics.
The Higher Education Act of 1965 has undergone multiple reauthorizations and amendments, including the addition of new title initiatives.
$1.7 Trillion
The total amount of student debt owed by Americans. Pell Grants once covered about up to 50% of college costs. That’s down to 30% in the 2022-2023 school year.
What the HEA Provides
The HEA established a variety of financial aid options for students attending post-secondary schools in the US Financial assistance programs including Pell Grants and Stafford loans were created as a direct result of this legislation.
Aid
Pell Grants, which do not need to be repaid, come from federal funding and are available to undergraduate students. The amount offered under the grant is based on financial need, the cost of the school, and the students’ standing for full-time or part-time attendance. There is a maximum amount of funding per recipient, which is set by the legislation that reauthorizes the grant program.
Loans
Stafford loans, which can be direct subsidized or direct unsubsidized loans, are offered to students in need of financial assistance.
Direct Subsidized Loans
For direct subsidized loans, which are available to undergraduate students who demonstrate financial need, the amount of the loan is determined by the costs of the school they are attending.
The interest on such loans is paid by the US Department of Education as long as the student remains enrolled at least half time in college. The interest is also covered for six months after they leave school.
Direct Unsubsidized Loans
Direct unsubsidized loans do not have financial requirements and are available to graduate students as well as undergraduates. The college or university will determine the size of the loan in relation to other financial assistance that was received.
The borrower is responsible for repaying all of the interest on a direct unsubsidized loan.
Technically, Stafford Loans don’t exist anymore, as the term refers to a subsidized or unsubsidized federal Stafford Loan that students could apply for in the past if they went to schools that participated in the Federal Family Education Loan (FFEL) Program.
No loans have been made under that program since July 1, 2010. But the terms “Stafford Loans” and “Direct Stafford Loans” are still used by many schools and individuals to refer to direct subsidized loans and direct unsubsidized loans made under the William D .Ford Federal Direct Loan Program.
The New SAVE Program
President Biden announced a new income-driven repayment (IDR) plan on June 30, 2023 in response to the same-day Supreme Court decision that halted his previous student loan forgiveness plan. Called SAVE, it offers enhanced financial benefits to student loan borrowers. Three important features will launch during the summer of 2023, while the full regulations take effect on July 1, 2024. For more information about SAVE, see the Department of Education’s fact sheet.
HEA Reauthorization Attempts
The HEA was reauthorized every five years from its initial passage in 1965 until 2008, frequently with amendments added to it. It has failed to gain formal reauthorization since 2013 but its programs have continued to operate on temporary extensions since then.
Current Status of the HEA
The HEA technically expired at the end of 2013, although its programs were allowed to continue to operate as Congress debated proposed changes to it.
In 2020, the Senate was nearing an agreement on a reauthorization and update of the HEA when the COVID-19 pandemic placed discussions about it and many other matters on hold.
Proposed changes that are still on the table include a simplified student aid application process and an increase in the maximum size of Pell Grants.
How Does the HEA Contribute to Post-Secondary Education?
The National Education Association calls the HEA “the cornerstone of college affordability” for Americans. At this time, 34% of college undergraduates receive Pell Grants to help pay for their education. More than 44 million Americans have taken out federal student loans.
What Is Title IV of the HEA?
Title IV authorizes and funds scholarships, low-interest loans, and work-study programs for students at eligible colleges and universities. Its best-known programs include Pell Grants and Stafford loans.
What Type of School Does the Term Higher Education Refer to?
Higher education refers to a course of study beyond the high school level, leading to the award of a degree, diploma, or certificate. This definition can encompass studies at a college, a university, a professional school, or a technical school.
What Is a Title I School?
In the context of the Higher Education Act, a Title 1 school is a post-secondary institution of higher learning that has been approved to receive direct federal assistance to enhance its library or strengthen its programs or is approved to accept students whose tuition is subsidized by the HEA.
It should not be confused with Title 1 of the Elementary and Secondary Education Act. That Title 1 is a federal program that supplements state and local funding for public schools in economically disadvantaged areas of the US
The Bottom Line
Today’s students were not born or even thought of when the Higher Education Act was first passed in 1965. But its core concept, making a college education accessible to Americans of modest means, has stood the test of time and served generations of American students.
Correction—Aug. 11, 2023: A previous version of this article incorrectly stated that Title II of the Higher Education Act allocates money to enhance library collections. Title II actually authorizes grants for the purpose of recruiting, educating, and training teachers.