(December 2009) For some time the conventional wisdom has been the student loan and health care debates are tied together because of a Senate procedural rule known as budget reconciliation. Now that the Senate appears determined to pass the health care legislation through regular order, logic would suggest the path has been cleared to begin work on the student loan bill.

However, as the outcome on health care is far from decided, the full Senate is unlikely to consider the student loan legislation until next year. Rumors are flying around Washington of imminent action on student loan reform legislation, but a bill has yet to be introduced, a markup in the HELP Committee has yet to be announced, and there are very few days left on the legislative calendar.

The leaders of the HELP Committee have so far indicated they are inclined to go along with what the Obama Administration prefers: the Direct Perkins Program. However, HELP Committee staffers have been hearing concerns from many other Senate offices.

Department officials now indicate there will be a one-year delay in the effective date of the Perkins Loan change. If that happens, Perkins Loans for the 2010-2011 academic year will be handled in the traditional way. Colleges that wish to make Perkins Loans next year are strongly advised to keep their Perkins Loan programs moving forward like they have in the past.

In sum, the legislative process is far from over and the future of Perkins remains unknown, but your voices are being heard and COHEAO members need to continue to reach out to their legislators, particularly in the Senate. If you have any questions, please feel free to contact Harrison Wadsworth (hwadsworth@wpllc.net) or Wes Huffman (whuffman@wpllc.net)

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