House Approves Bill That Would Allow Students Displaced by Hurricane to Keep All Federal Grant Aid

By STEPHEN BURD and JAMIE SCHUMAN

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The U.S. House of Representatives unanimously approved legislation on Thursday that would allow students displaced by Hurricane Katrina to keep all of the federal grant aid they have received to attend college this fall.

Also on Thursday, Louisiana's commissioner of higher education asked a U.S. Senate panel for $1-billion in federal funds to support the hurricane-relief efforts of universities in his state.

The legislation passed by the House expands on a bill (HR 3169), approved by the chamber on Wednesday, that would give the secretary of education the authority to waive a requirement in federal student-aid law that requires students who withdraw from college to return a portion of their Pell Grants to the federal government.

The new bill (HR 3668) would add to that authority so that students who were forced to leave college because of "a major disaster" would not have to return other types of grants that are authorized under the Higher Education Act, which governs most federal student-aid programs.

Thousands of students attending colleges in the Gulf Coast region have been forced to withdraw or to transfer to other institutions in the wake of the devastating hurricane.

Under the bill, if the education secretary granted the waiver, the students could keep the grants they received from the Supplemental Educational Opportunity Grant program, which augments Pell Grants for needy students, and the Leveraging Educational Assistance Partnerships program, which matches each dollar that states commit to need-based aid. The students would also be able to hold on to scholarships they received through the Gear Up and the TRIO programs for disadvantaged students, which aim to motivate and prepare students from low-income families for college.

The sponsor of the legislation -- Rep. Bobby Jindal, a Republican from southeastern Louisiana -- made an emotional plea to his colleagues to support the legislation.

"Students in my district are facing hardships on numerous fronts, from the loss of their homes and communities to the damage and closure of college campuses," said Mr. Jindal. "As students cope with these unprecedented challenges, we should not add to their burden by requiring those who have been forced to withdraw from college to repay student aid."

House Democrats supported the bill but said that Congress must do more to provide relief to the estimated 100,000 students affected by the hurricane. "I hope Congress will soon consider a more comprehensive package," said Rep. Dale E. Kildee, a Michigan Democrat. "An extraordinary catastrophe demands an extraordinary solution. Congress must do more."

Mr. Kildee touted a bill (HR 3690) that he and Rep. George Miller of California, the top Democrat on the House Committee on Education and the Workforce, introduced on Wednesday. That bill would, among other things, allow borrowers affected by the hurricane to defer payments on their student loans for up to six months without being charged interest or incurring penalties.

Members of the Senate education committee have yet to offer hurricane-relief legislation, but the panel met on Thursday with education, health, and labor leaders for a round-table discussion.

At that meeting, E. Joseph Savoie, Louisiana's commissioner of higher education, said that Congress should allot $500-million in earmarks to help public and private universities in his state as soon as possible, and should provide additional money as needed. He also asked for $500-million to help students in his state who had been displaced by Hurricane Katrina.

Mr. Savoie also said that Congress should ease regulations on financial aid for affected students, and expand the definition of need-based aid to provide more money for more people. Many parents who lost jobs and homes will not be able to contribute to their children's education in the way they did before the storm, he said.

"Need-based aid is not just a lower-income need now," Mr. Savoie said. "It crosses the whole economic spectrum of our students."

Mr. Savoie said the $500-million for universities would go both to those that are temporarily closed because of the hurricane and to those that have little structural damage but are losing money because they are running shelters and enrolling displaced students. He said he hoped Congress would respond to his requests quickly, by adding the money to a coming disaster-relief appropriations bill, so that universities in Louisiana could retain faculty members and stay competitive nationally.

"Schools and colleges and universities are the economic and social hubs for our community," Mr. Savoie said. "If these institutions are not viable, these communities will not be viable."

During the round-table discussion, senators did not comment on the likelihood of carrying out proposals like Mr. Savoie's. Instead, they said, the panel was a chance for them to hear guidance from experts.

• House-Passed Bill Would Let Displaced Students Keep Pell Grants; Debate Looms Over Other Relief Measures (9/8/2005)

• Education Department Eases Rules for Colleges Accepting Students From Hurricane Region (9/6/2005)

• Education Dept. Says Its Loan Rules Will Smooth the Path for Students and Colleges Hit by Hurricane (9/2/2005)