	Overview

The 111 th Congress enacted the Health Care and Education Reconciliation Act of 2010 (HCERA; P.L. 111-148 ), to amend the Higher Education Act of 1965, as amended (HEA; P.L. In the 109 th Congress, the Federal Family Education Loan (FFEL) program and the William D. Ford Federal Direct Loan (DL) program were amended and extended under the Higher Education Reconciliation Act (HERA, part of P.L. Title II, Part A of the HCERA, entitled the SAFRA Act, contains several education-related provisions. The income-based repayment (IBR) plan is amended for new borrowers of DL program loans on or after July 1, 2014. Mandatory funding for HEA programs serving Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions is provided for FY2010 through FY2019. Title I, Part F of P.L. 111-152 contains an education provision that funds the Community College and Career Training Grant Program from FY2011 through FY2014. 111-152 . The legislative history describes the budget reconciliation process. 111-89 , the conference report to accompany S.Con.Res. The House Education and Labor Committee received two reconciliation instructions, each directing the committee to report changes in laws within its jurisdictions to reduce the deficit by $1 billion for the period of FY2009 through FY2014. H.R. On October 7, 2009, the Committee also submitted H.Rept. 3221 , as reconciliation instructions to the House Budget Committee. H.R. 3221 include the following. 4872 ) by packaging education-related reconciliation instructions submitted by the House Education and Labor Committee with health care-related reconciliation instructions submitted by both the House Committee on Ways and Means and the House Committee on Education and Labor. 4872 . H.R. 111-152 . Cost Estimate

According to the CBO estimate of the SAFRA Act dated March 20, 2010, terminating FFEL program lending and replacing it with increased lending under the DL program will reduce mandatory spending by $29 billion over the FY2010-FY2014 period, and by $61 billion over the FY2010-FY2019 period. Overall, the CBO estimates that the SAFRA Act will reduce mandatory spending by $5 billion over the FY2010-FY2014 period, and by $19 billion over the FY2010-FY2019 period. These estimated savings exceed the $1 billion reduction in spending specified in S.Con.Res. 13 . CBO projects that the termination of lending under the FFEL program and the shift to all HEA Title IV federal student loans (other than Perkins Loans) being made under the DL program will result in a reduction of $28.6 billion in mandatory spending over the period from FY2010 through FY2014, and of $61.0 billion in mandatory spending over the period from FY2010 through FY2019. Amendments to the Federal Pell Grant Program

The SAFRA Act changes the method by which future additional mandatory Pell Grant award amounts are determined and increases mandatory spending by providing permanent mandatory budget authority for the program beginning March 30, 2010.
The FY2010 budget resolution (S.Con.Res. 13) included two reconciliation instructions directing the House Committee on Education and Labor to report changes in laws within their jurisdictions to reduce the deficit by $1 billion each for the period of fiscal year (FY) 2009 through FY2014. The reconciliation instructions specifically noted that $1 billion of the reduction from the House Committee on Education and Labor should be related to education.
On October 7, 2009, in response to the FY2010 budget reconciliation instructions, the House Committee on Education and Labor submitted H.R. 3221 to the House Budget Committee as education-related reconciliation instructions. Certain provisions of H.R. 3221 were incorporated into H.R. 4872, the Health Care and Education Reconciliation Act of 2010 (HCERA). On March 30, 2010, President Obama signed H.R. 4872 into law (P.L. 111-152).
The SAFRA Act, Title II, Part A of the law, terminates the authority under the Higher Education Act (HEA) of 1965, as amended, to make loans under the Federal Family Education Loan (FFEL) program after June 2010. The Congressional Budget Office (CBO) estimates that this will reduce mandatory spending by $29 billion over the FY2010-FY2014 period, and by $61 billion over the FY2010-FY2019 period. These savings are sufficient to achieve the $1 billion reduction in spending specified in S.Con.Res. 13, while offsetting an increase in mandatory spending as a result of expanding other HEA programs.
A significant portion of the savings estimated to result from enactment of the SAFRA Act offsets additional mandatory appropriations for the Federal Pell Grant program. The SAFRA Act also makes the following changes to several HEA programs: the William D. Ford Federal Direct Loan (DL) program is amended to accommodate the termination of the FFEL program; and existing HEA programs for Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions and the College Access Challenge Grant (CACG) program are extended with mandatory appropriations. The law also amends the income-based repayment (IBR) plan. Overall, CBO estimates that the SAFRA Act reduces mandatory spending by $5 billion over the FY2010-FY2014 period, and by $19 billion over the FY2010-FY2019 period.
Title I of the HCERA contains provisions regarding health coverage, Medicare, Medicaid, and various tax revenues. Title I, Part F amends and funds the Department of Labor's Community College and Career Training Grant Program (CCCT).
This report begins with a brief legislative history of the education-related provisions in P.L. 111-152. It then identifies and describes selected amendments made to the HEA and other laws by P.L. 111-152.