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H.R. 2637, Supporting Academic Freedom through Regulatory Relief Act 1 (July 30, 2013)

handle is hein.congrec/cbo11225 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE
COST ESTIMATE
July 30, 2013
H.R. 2637
Supporting Academic Freedom through Regulatory Relief Act
As ordered reported by the House Committee on Education and the Workforce
on July 24, 2013
H.R. 2637 would repeal three regulations previously published by the Department of
Education and prohibit future rulemaking in those areas. It also would amend the Higher
Education Act of 1965 (HEA) to permit institutions of higher education to make certain
payments to third parties for student recruiting services. CBO estimates that enacting
H.R. 2637 would not have any significant impact on the federal budget.
The bill would repeal regulations that require institutions of higher education to be
authorized by the state or states in which they offer a curriculum. It also would repeal
regulations that require certain institutions of higher education to meet benchmarks
related to the repayment of student loans and debt-to-income ratios of former students in
order to be eligible to participate in the federal student aid programs (this rule is
commonly referred to as gainful employment). The bill would prohibit the department
from defining or enforcing rulemaking related to these terms until the Congress extends
the authorizations in the HEA for at least two years.
A federal court invalidated portions of both of the rules described above, and the
Department of Education has announced that it is restarting the negotiated rulemaking
process to develop new rules. Thus, CBO assumes that neither rule is currently in effect
and that repealing the rulemaking would have no impact. Finally, the bill would repeal a
rule that defines the term credit hour and would prohibit the department from defining
or enforcing rulemaking related to this term any time after the date of enactment of
H.R. 2637.
Enacting the bill could affect discretionary spending for Pell grants and direct spending
for student loans and Pell grants; therefore, pay-as-you-go procedures apply. However,
CBO estimates that the effects on both direct spending and discretionary spending would
be insignificant for each year and over the 2013-2023 period. Enacting the bill would
have no impact on revenues.

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