# The Higher Education Act of 1965 (HEA): Definition and Provisions

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## 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 strengthen the educational resources of the United States' colleges and universities. 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 several 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 like Pell Grants 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.  
    

## How the Higher Education Act of 1965 Works

President Johnson advocated the passage of the Higher Education Act of 1965 (HEA), which stated the 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 TRIO program, 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 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 education.

_Title VIII:_ Contains provisions focused on various post-secondary and graduate-level educational topics.

The HEA has undergone multiple reauthorizations and amendments, including adding new title initiatives.

### $1.77 Trillion

The total amount of student debt owed by Americans, as of Q3'24.

## What the HEA Provides

The HEA established various financial aid options for students attending post-secondary schools in the U.S. Financial assistance programs, including [Pell Grants](https://www.investopedia.com/terms/p/pell-grant.asp) and Stafford loans, were created as a direct result of this legislation.

### Aid

Pell Grants, which don't need to be repaid, come from [federal funding](https://www.investopedia.com/why-colleges-need-federal-funding-and-what-happens-when-it-stops-11730304) and are available to undergraduate students. The amount offered under the grants is based on financial need, the cost of the school, and each student’s standing for full-time or part-time attendance. The legislation that reauthorizes the grant program sets a maximum amount of funding per recipient.

### Loans

Stafford loans, which can be directly subsidized or directly unsubsidized loans, are offered to students in need of financial assistance.

**Direct Subsidized Loans**

Direct subsidized loans are available to undergraduate students who demonstrate financial need. The amount of the loan is determined by the costs of the school the student is attending.

The interest on such loans is paid by the U.S. 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 the student leaves school.

**Direct Unsubsidized Loans**

Direct unsubsidized loans don't have financial need requirements and are available to graduate students and undergraduates. The college or university will determine the size of the loan and other financial assistance that was received.

The borrower is responsible for repaying all 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. However, many schools and individuals still use the terms "Stafford loans" and "direct Stafford loans" to refer to direct subsidized loans and unsubsidized loans made under the William D. Ford Federal Direct Loan Program.

## HEA Reauthorization Attempts

The HEA was reauthorized every five years from its initial passage in 1965, frequently with amendments added until 2008. It has failed to gain formal reauthorization since 2013, but its programs have operated 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 operating while Congress debated proposed changes to it.

In 2020, the Senate was nearing an agreement on reauthorizing and updating the HEA when the pandemic placed discussions about it and many other matters on hold.

Proposed changes still on the table include a simplified student aid application process and an increase in the maximum size of Pell Grants.  

## How Did the HEA Contribute to Post-Secondary Education?

The National Education Association calls the Higher Education Act of 1965 (HEA) "the cornerstone of college affordability" for Americans. In 2021–22, 32% of college undergraduates received Pell Grants to help pay for their education. More than 42 million Americans have federal student loans as of Q3'24.

## 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 HEA, 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 shouldn't 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 U.S.

## The Bottom Line

Today's students weren't born or even thought of when the HEA 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.  

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