What Is the Higher Education Act of 1965?

What Is the Higher Education Act of 1965?

Let me explain the Higher Education Act of 1965, or HEA, directly to you: it's a federal law aimed at offering financial help to students in post-secondary education while enhancing the resources of colleges and universities across the United States. This act ramped up federal funding to these institutions, created scholarship programs, introduced low-interest student loans, and set up the National Teachers Corps.

As part of President Lyndon B. Johnson's Great Society initiatives, I can tell you it was signed into law on November 8, 1965, and Congress has reauthorized it several times since then. However, it expired in 2013, and while lawmakers haven't agreed on a full reauthorization, the act keeps running through temporary extensions, ensuring programs like Pell Grants stay available to you and others.

Key Takeaways

Here's what you need to know upfront: the HEA hasn't been reauthorized by Congress since 2013, but it operates on temporary extensions. It delivers financial aid to college students, including subsidized grants and loans for those who qualify in post-secondary education. Programs like Pell Grants and Stafford loans originated from this act. Additionally, it funds continuing education, school libraries, and teaching resources directly.

How the Higher Education Act of 1965 Works

President Johnson pushed for the HEA to expand educational access for children from lower- and middle-income families, support smaller colleges facing financial strains, and improve library resources at higher education institutions. On its 50th anniversary in 2015, the National Education Association praised it for making college affordable to millions of smart, low- and middle-income Americans through need-based grants, work-study, and federal loans. It also led to the TRIO program, which supports educational initiatives for low-income and disadvantaged students from middle school to graduate levels.

What the HEA Provides

The HEA created multiple financial aid options for students at U.S. post-secondary schools, with Pell Grants and Stafford loans being direct outcomes. Pell Grants are federal funds that you don't repay, available to undergraduates based on financial need, school costs, and enrollment status—reauthorization sets the maximum per recipient.

For loans, Stafford loans include direct subsidized and unsubsidized types for students needing aid. Direct subsidized loans go to undergraduates with demonstrated need, sized by school costs, with the U.S. Department of Education covering interest while you're enrolled at least half-time and for six months after leaving. Direct unsubsidized loans lack need requirements, available to graduates and undergrads, with the school determining the amount, and you handle all interest repayment. Note that 'Stafford loans' technically refer to past programs under the FFEL, ended in 2010, but people still use the term for current direct loans under the William D. Ford program.

HEA Reauthorization Attempts and Current Status

The HEA was reauthorized every five years from 1965, often with amendments, until 2008. It hasn't had formal reauthorization since 2013, running on extensions instead. It expired at the end of 2013, but programs continued as Congress debated changes. In 2020, the Senate was close to an agreement on updates when the pandemic halted discussions. Proposed changes include simplifying student aid applications and boosting Pell Grant maximums.

Contributions and Key Details

The HEA is the cornerstone of college affordability, as the National Education Association puts it—in 2021–22, 32% of undergrads got Pell Grants, and over 42 million Americans hold federal student loans as of Q3 2024. Title IV specifically funds scholarships, low-interest loans, and work-study at eligible schools. Higher education means studies beyond high school leading to degrees, diplomas, or certificates at colleges, universities, professional, or technical schools. A Title I school under HEA is a post-secondary institution approved for federal aid to improve libraries or programs, or to accept subsidized students—not to be confused with K-12 Title 1 funding.

The Bottom Line

Students today weren't around when the HEA passed in 1965, but its core idea of making college accessible to those of modest means has endured, benefiting generations through financial aid and institutional support.