Dartmouth will stop granting college credit for students with high AP test scores beginning with the class of 2018, which will enter in the Fall of 2014. Currently, Dartmouth students with scores of four or five (out of five) on an AP test can have certain lower-level courses waived, earn placement into higher-level courses, or receive credit toward their degrees. When the new policy takes effect, the first two of options will still be available, but students will not be able to earn credits. Dartmouth’s Committee on Instruction proposed the change in policy and the faculty passed it with an “overwhelming majority,” according to Inside Higher Ed. However, faculty members say they “still value AP courses – just not as a replacement for a college classroom.”
Dartmouth changed the policy after its psychology department performed an experiment to assess the college-level competence of top AP scorers. Students who had earned a five on the AP psychology test were asked to take a placement exam based on the final for intro psychology; 90 percent of those students failed, according to the college. The researchers also found that the students who failed and then chose to take intro psychology did not perform better than their peers who had never taken AP psychology or who had scored less than a five. These results challenge those of an independed study published by College Board. College Board officials say they question Dartmouth’s results and believe the college has an obligation to share the details of its experiment.
There are concerns that the college’s change in policy will discourage high school students from accepting the challenge of an AP course and/or could keep students on campus longer than they would if college credit were granted for their scores. Dartmouth’s Committee on Instruction plans to review the policy in three years.
In Washington, RCW 28B.10.053 requires that institutes of higher education “recognize the equivalencies of at least one year of course credit and maximize the application of the credits toward lower division general education requirements that can be earned through successfully demonstrating proficiency on examinations, including but not limited to advanced placement and international baccalaureate examinations.”
In its new report, “Knocking at the College Door,” the Western Interstate Commission for Higher Education projects that 45 percent of high school graduates in 2020 will be minority students, up from 38 percent in 2009. According to the report, the number of white and African-American students will decline, while the number of Asian-American/Pacific Islander and Hispanic students will rise precipitously. While the supply of high school graduates will decline a bit in the next decade, it is expected to stabilize at three million students per year. Of course, this large number masks the individual experiences of states: in Texas, Colorado, and Utah, for example, the number of high school graduates is expected to increase by 15 percent before 2020, while Michigan, Maine and New Hampshire are projected to have 15 percent fewer high school graduates in that same time frame. Washington State is expected to have moderate growth in the number of high school graduates, on the order of about five percent by 2020. The trend can already be felt at the University of Washington, where 51 percent of the 2012 entering freshman class was minority students (including Asian-American students). Underrepresented minorities at the UW comprised 17.4 percent of the freshman class of 2012.
Universities are already beginning to respond to the expected increase in minority students by analyzing their admissions criteria and financial aid policies, and assessing the new resources they will need to meet the needs of this growing group of students. As higher education student demographics become more diverse, colleges will focus increasingly on raising educational attainment among underrepresented minorities. Universities also want to do better in reaching out to high school seniors and graduates during the application process, as underrepresented minority students often have less access to information about the college application and financial aid processes.
To read more about the report, and how universities are responding to it, please read the Chronicle’s analysis or the full report.
Last Thursday, California Governor Jerry Brown released a proposed 2013-14 budget that includes substantial increases for higher education—made possible by the passage of Prop 30. For the UC and CSU systems, the proposal provides an ongoing increase of $125.1 million each. This includes $10 million each to expand the delivery of courses through technology and is in addition to the $125 million that UC and CSU will each receive in 2013‑14 for not increasing tuition and fees in 2012‑13, as required by the 2012 Budget Act. In sum, the proposal says “the state’s General Fund contribution to UC and CSU will increase by 5 percent per year in 2013-14 and 2014-15 and by 4 percent in each of the subsequent two years.”
Both higher ed systems had asked for more; but, according to The Chronicle, Gov. Brown said “the gap between what we’re going to give them and what they say they’re going to need” would have to be made up through efficiencies. Cal State system’s chancellor that Mr. Brown’s proposal at least “heads us in the right direction.”
However, in exchange for new money, state institutions are expected to keep tuition and fee levels stable over the next four years. The institutions are required to increase access to online courses and limit resident tuition rates to the first 150 percent of credits needed to graduate. This limitation is an attempt to encourage timely degree completion, reduce student debt, and free up classroom space for other students.
At a news conference Thursday, Governor Brown stated that he would be attending UC and CSU board meetings in the hopes of encouraging both systems to keep tuition prices stable.
The 2013 Washington State legislative session, scheduled to last 105 days, began today. OPB will be tracking all bills that are relevant to the University and we will do our best to keep you updated on the happenings in Olympia. For the most comprehensive legislative session information, please see the Washington State Legislature’s website.
As always, check the BillTracker for the latest information on bills relevant to the UW, including scheduled hearings, bill summaries, and the official UW position on a bill. This year, we have also integrated our Fiscal Note process into the BillTracker, which will hopefully streamline the data gathering process.
For more information about how to use BillTracker and bill analysis generally, check out this presentation. If you have questions about submitting Fiscal Notes, please review this Fiscal Note presentation.
Please also feel free to check out the Office of State Relations website for up-to-date information on the state of events in Olympia.
We will post updates on the budget situation to the blog, and we will announce any new budget briefs here as well. If you have a pressing budget-related question, please contact Sarah Hall at firstname.lastname@example.org. For any questions related to bill tracking or Fiscal Notes, please email email@example.com.
Two years ago at the annual Council of Independent Colleges, a group of private-college presidents advocated for limiting the amount of financial aid awarded on criteria other than need—usually referred to as “merit-based” financial aid. Although the presidents received an enthusiastic response from the Council, little action followed. However, last Saturday at this year’s Council meeting, the conversation was revisited and two encouraging developments suggest progress may be more conceivable this time.
First, the presidents unveiled a draft “statement of principle,” which they hope will unite colleagues who believe that meeting financial need should be the highest priority of aid policies. Titled “High Tuition/High Discount Has No Future,” the statement articulates that the merit-aid/tuition discounting model is unsustainable and those signing their support acknowledge they’ve contributed to the problem. The statement cites a 2009 study that found “the increased use of merit aid is associated with a decrease in enrollment of low-income and minority students, particularly at more selective institutions.”
Second, David L. Warren, president of the National Association of Independent Colleges and Universities, revealed information from preliminary conversations with U.S. Justice Department officials regarding ways in which groups of presidents could discuss their tuition and/or financial aid policies without penalty and, hopefully, reach collective agreements to make college more affordable. This is significant as the Overlap Group, a set of elite universities that joined forces on admissions and financial-aid decisions for several years, faced antitrust charges by the federal government in 1991. The federal case effectively ended any meaningful collaboration on such topics, keeping schools in the dark about each other’s financial aid and admissions strategies.
“The fear, obviously, is that unilateral disarmament” in the merit-aid race won’t work, said one of the efforts’ leaders according to The Chronicle. Presidents worry that increasing need-based aid and decreasing merit aid, which is used to attract top students, will result in less robust enrollment and less prestige. But hopefully between the statement of principle, which could align presidents behind common goals, and discussions with the federal government, which could result in permissible collaboration, some progress will be made and the game of financial-aid chicken can end.
Yesterday, the Senate and House of Representatives approved legislation to avert the fiscal cliff. The deal postpones the automatic, across-the-board spending cuts—known as “the sequester”—by two months and increases tax rates only for individuals earning over $400,000 and couples earning over $450,000. The bill also preserves funding for Pell Grants and extends for five years the American Opportunity Tax Credit (AOTC), which allows students and their parents to claim up to $2,500 a year for tuition and college expenses.
For details, please see the blog post provided by Christy Gullion, Director of Federal Relations, and the articles provided by Inside Higher Ed and The Chronicle
Christy Gullion, Director of Federal Relations, recently provided an update on the fiscal cliff–the combination of large decreases in federal spending and simultaneous increases in income taxes set to take effect January 1st. For background information, please see the brief put out jointly by the UW offices of Federal Relations, Planning & Budgeting, and Research.
A bill introduced to the House of Representatives earlier this month by Rep. Thomas E. Petri, a Wisconsin Republican, would overhaul the federal student-loan programs. Under the proposal:
- Monthly payments would be capped at 15 percent of discretionary income—the new income-based repayment program currently caps payments at 10 percent of discretionary income.
- Payments would be withheld directly from paychecks—essentially eliminating the potential for defaulting, a welcome thought for schools with high default rates (predominately for-profits) which are at risk of losing eligibility to participate in federal aid programs.
- Interest accrual would be capped at 50 percent of a loan’s total at the time of graduation—good news for borrowers, often low-income, who take upwards of 10 years to repay loans.
- Subsidies would be eliminated that currently pay interest while undergraduates are in college—a means of offsetting the cost of capping interest, but potentially detrimental to low-income students.
- Loan forgiveness after a certain number of years (usually 20 or 25) would be eliminated—this could dissuade students from entering public-service careers for which loans are currently forgiven after 10 years.
The proposed system resembles those used in the U.K., Australia, and New Zealand. If passed, the new rules would only impact new loans.
While some components of the bill could be beneficial, such as the cap on interest accrual, many other components appear problematic. The Chronicle reports that the National Association of Student Financial Aid Administrators expressed support for the proposal saying, “We need to make it as easy as possible for borrowers to stay on the straight and narrow.” But others, such as the advocacy group Institute for College Access & Success, worry the bill would “take away some key tools for managing federal student debt,” such as forbearance and deferments.
Since similar proposals from Rep. Petri have had little success in the past and since his latest bill has no cosponsors, the bill is unlikely to be passed. However, it could be discussed during next year’s Congressional debate over reauthorizing the Higher Education Act, which expires at the end of 2013.
Last Wednesday, eight Democratic senators sent a letter to the U.S. Department of Education (ED) asking Education Secretary, Arne Duncan, to investigate strategies that some for-profit colleges allegedly use to falsely lower their cohort default rates (CDRs)—the rate at which student borrowers default on federal loans. Institutions with high CDRs can face penalties including a loss of eligibility for federal student aid programs.
The letter cites a recent Senate Committee report, which presents evidence that for-profits routinely use two tactics
in particular to manipulate CDRs:
- “Encouraging or even harassing borrowers” into forbearances or deferments, which can delay default until after the
period for which CDRs are typically reported; and
- Manipulating campus and program categorizations in a way that makes their default rates artificially low.
The senators argue that “for-profit schools should not be able to use administrative smoke and mirrors to circumvent regulations that protect students and taxpayers, and the department should take action to prevent these tactics.” Some for-profits have admitted to using such strategies to “manage” their CDRs, but they deny that doing so conflicts with their students’ best interests.
For-profits consistently average higher default rates than all other higher education sectors. Of the students who began repaying loans in 2009, 22.7 percent of students at for-profits defaulted within three years, while only 11 percent of public students defaulted in that timeframe, and only 7.5 percent of private nonprofit students. In contrast, the UW’s three-year CDR was an impressively low 3.1.
Comparing for-profits’ two-year CDRs with newly-reported three-year CDRs reveals a major, and potentially damning, discrepancy. Fifty percent more students from for profits’ defaulted in the three-year timeframe than in the two-year timeframe. The senators say this “raises serious questions about how widespread the use of such tactics may be across the sector.”
ED has yet to respond to the senators’ letter.
The Governor’s budget office released the first set of biennial budgets today. The current Governor proposed a “current law” balanced budget, assuming no new revenue, and a budget with new revenue, appropriating $34.1 billion of Near General Fund State per year, for which all of higher education, including financial aid, would receive nearly $3 billion (or 8.7 percent). As a reminder, Governor Gregoire’s budget proposals are the first of many budgets to be released for the upcoming biennium. The earliest point that the UW will have a sense of its actual anticipated state funding level is late April 2013. In addition, we might see Governor-elect Inslee release his own budget, or a set of budget priorities, in January 2013.
Under Governor Gregoire’s balanced and new law budgets, each of the state’s six baccalaureate institutions would receive slight increases in funding when compared to carry-forward budgets levels, with no new tuition increases or state funding reductions. While the UW has another year of tuition setting authority under HB 1795, the Higher Education Opportunity Act, this budget does not provide any new financial aid funds to cover tuition increases. Note that Education Legacy Trust funding, from which the UW normally received at least $8 million annually, was removed from all public baccalaureate institutions’ budgets and replaced with general fund appropriations.
The 2012 Legislature appropriated $209 million in state funds to the UW for FY13, thus, both of the Governor’s proposed budgets represent an increase in the UW’s state funding for FY14 and FY15. However, the budget bill devotes these increases to covering expenses associated with the UW’s collective bargaining agreements. If any funds remain afterward, they will be available for any other purpose(s).
Please review our budget brief on the Governor’s operating budgets and capital budgets. As usual, let us know if you have any questions.
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