Despite Democrats' and educators' concern over the first Republican-led reauthorization of the Higher Education Act this year, Republicans supported the bill. Some observers feel the support is a G.O.P. survival strategy, and will not continue; some conservatives feel the party is caving in to higher education interest groups' demands. (MSE)

The student loan default rate was 9.6% in 1996, a decline of 12.8% since the 1990 peak, saving the federal government $3 billion over six years. Since 1993 the Department of Education has barred 1065 institutions, mostly for-profit trade schools, from participating in federal student loan programs; institutions with a 40% default rate can lose…

A new law lowered the 1992 earnings cap that made it difficult for college students to qualify for Pell Grants, the largest federal source of need-based student financial aid. The measure also raises the Pell Grant maximum award, increases the National Institutes of Health (NIH) budget, and makes other changes in the law. Details of l998 budget…

President Bill Clinton used the declining default rate on college student loans as a basis for proposing tax breaks for college costs. Reduced defaults have saved taxpayer money and helped reduce the federal deficit. Over 150 colleges and universities, including 25 private institutions, risk losing eligibility for federal grant and loan programs…