Federal Education Policy: The Elementary and Secondary Education Act and Higher Education

The federal role in education has expanded significantly since the Elementary and Secondary Education Act of 1965 (ESEA), which established the foundational framework for federal K-12 education assistance. The ESEA was enacted as part of President Johnson's War on Poverty, with Title I providing compensatory education funding for schools serving disadvantaged students. The law has been reauthorized multiple times, most significantly through the No Child Left Behind Act of 2001 (NCLB) and the Every Student Succeeds Act of 2015 (ESSA).

In higher education, the Higher Education Act of 1965 (HEA) created the framework for federal student financial aid programs, including grants, loans, and work-study. The HEA has been reauthorized multiple times, most recently in 2008. Despite multiple failed reauthorization attempts since then, Congress has made significant changes to student aid programs through appropriations bills and standalone legislation. The federal government became the sole originator of federal student loans in 2010 through the Student Aid and Fiscal Responsibility Act, ending the bank-based Federal Family Education Loan program.

ESSA requires states to establish challenging academic standards, administer annual assessments in reading and mathematics in grades 3-8 and once in high school, and implement accountability systems that include multiple measures of school quality. States must identify schools for comprehensive and targeted support and improvement based on these measures and develop evidence-based intervention strategies. Title II provides funding for teacher and principal preparation and professional development, while Title IV supports student enrichment, safety, and technology programs.

Federal student aid programs include Pell Grants (up to $7,395 for the 2024-2025 award year) for undergraduate students with demonstrated financial need, Direct Subsidized and Unsubsidized Loans, PLUS Loans for graduate students and parents, and Federal Work-Study. Income-driven repayment plans cap monthly loan payments at a percentage of discretionary income, with remaining balances forgiven after 20-25 years of payments. Public Service Loan Forgiveness provides forgiveness after 120 qualifying payments for borrowers employed in public service.

K-12 policy options include reauthorizing the ESEA with updated provisions, expanding federal support for career and technical education, addressing chronic absenteeism and learning loss associated with the COVID-19 pandemic, expanding pre-kindergarten programs, and debating the appropriate federal role in school choice programs including vouchers, charter schools, and education savings accounts. Title I formula reform has been discussed as a means of better targeting funds to the highest-poverty schools.

Higher education options include comprehensive HEA reauthorization, reforming the student loan system through interest rate adjustments or elimination, expanding Pell Grant eligibility and amounts, establishing free community college programs, strengthening institutional accountability for student outcomes, reforming accreditation, and addressing the rising cost of higher education. The scope and legality of executive branch student loan forgiveness authority remains a significant legal and policy question following the Supreme Court's decision in Biden v. Nebraska.

The Department of Education has implemented the SAVE income-driven repayment plan, which reduces payment amounts and accelerates forgiveness timelines for low-balance borrowers, though the plan faces ongoing legal challenges. FAFSA simplification provisions enacted in the FAFSA Simplification Act are being implemented, expanding Pell Grant eligibility and streamlining the application process. Congressional oversight has focused on the Department's implementation of student loan programs, institutional accountability, Title IX regulations, and the impact of pandemic-era learning disruptions on student achievement.