Now that both Democrats and Republicans have adopted party platforms at their respective conventions, what do we know about their plans for higher education? Below is a quick overview of each party’s higher education goals and associated action steps (past, present, or future) adapted directly from the parties’ formally-adopted platforms:
GOAL 1: To make college affordable for students of all backgrounds and confront the burden of loans.
- Removed banks as student loan middlemen, saving more than $60 billion.
- Doubled investment in Pell Grant scholarships.
- Created American Opportunity Tax Credit of up to $10,000 over a 4 year degree.
- Working to help student loan payments be only 10% of a student’s monthly income.
- Pledged to incentivize colleges to keep their costs down.
- Invested over $2.5 billion into strengthening our nation’s Minority Serving Institutions.
GOAL 2: To recognize the economic opportunities created by our nation’s community colleges.
- Invested in community colleges and called for business-college partnerships to train 2 million workers.
GOAL 3: To make this country a destination for global talent and ingenuity.
- Will work to help foreign students earning advanced degrees stay and help create jobs here.
GOAL 1: Improve our nation’s classrooms.
- Address ideological bias that is deeply entrenched within the current university system.
- Protect the public’s investment in state institutions from abuse by political indoctrination.
- Call on State officials to ensure that public institutions be “places of learning and the exchange of ideas, not zones of intellectual intolerance favoring the Left.”
GOAL 2: To address rising college costs and get back to programs directly related to job opportunities.
- Expand new systems of learning (online universities, community colleges, etc.) to compete with traditional 4-year colleges.
- Advance the affordability, innovation, and transparency needed to make lower cost alternatives accessible to everyone.
GOAL 3: To get federal student aid onto a sustainable path.
- Provide families with information necessary to making prudent choices about a student’s future.
- Shift the federal government’s role in student loans from being the originator of loans to an insurance guarantor for private sector student loans.
- Welcome private sector participation in student financing.
- Reevaluate any regulation that drives tuition costs higher.
Voters’ choices on November 6th will determine which party, and consequently which platform, has the greatest impact on the UW. In the meantime, any relevant updates or changes will be added to OPBlog.
The Pell Grant program, the largest federal student grant program, was expected to be $20 billion short of the $40 billion price estimated for FY12 (which ended July 1). However, the Department of Education surprised many with newly-released data showing the federal government not only spent well under that estimate at only $33.4 billion, but in fact $2.2 billion less than FY11.
Recently, Pell eligibility increased dramatically as college enrollments rose and the recession continued to impact family/student income. This trend continued in FY12 and, interestingly, the dip in Pell spending occurred despite a 58,000 increase in Pell recipients—to almost 9.7 million. In fall 2011, nearly one quarter of UW freshmen were Pell eligible.
Reasons for the decline in Pell spending include:
- The elimination of the year-round, or summer, Pell Grant, which allowed students to qualify for two awards in a year.
- More students attending college part time as part-time status reduces Pell award amounts.
- Fewer students attending for-profit institutions, which tend to enroll students who qualify for larger awards. Recent bad press and slumping enrollments have hit for-profits hard. Consequently, the number of Pell recipients at for-profits declined by 108,000 students, to roughly 2.1 million, and accounted for $1.4 billion of the decrease.
The drop in Pell expenditures is a relief for most lawmakers as they face next year’s “fiscal cliff” and must address both the impending tax hikes (when Bush tax cuts expire) and the automatic spending cuts (as mandated by the sequester). The Obama administration and congressional Democrats have resisted financial aid-related budget cutting, maintaining the maximum Pell award of $5,550 and writing specific protection for Pell Grant funding into the Budget Control Act. However, recent financial straits have already caused the federal government to eliminate several student loan programs such as the previously-mentioned summer Pell Grant, the six-month grace period for loan repayment, subsidized Stafford Loans for graduate students, and incentives for early loan repayment. With the sequester and difficult budget decisions looming on the horizon, it is safe to say that no funding is safe.
In 2009, the National Research Council received a request from Congress for a “report that examines the health and competitiveness of America’s research universities vis-à-vis their counterparts elsewhere in the world”.
Responding to the request, the NRC assembled a 22-member panel of university and business leaders and mandated them to identify the “top ten actions that Congress, the federal government, state governments, research universities, and others could take to assure the ability of the American research university to maintain the excellence in research and doctoral education needed to help the United States compete, prosper, and achieve national goals for health, energy, the environment, and security in the global community of the 21st century”.
The panel released its final report last week under the title Research Universities and the Future of America: Ten Breakthrough Actions Vital to Our Nation’s Prosperity and Security. The following were the strongest themes:
- State and federal governments must increase their investment in research universities, allow these institutions more autonomy and agility, and reduce their regulatory burden: The panel identified the state and federal governments as the key actors in the strategy it proposed; indeed, seven of its ten recommendations were primarily aimed at them. In one of its more ambitious statements, the panel recommended that states should strive to restore and maintain per-student funding for higher education to the mean level for the 15-year period 1987-2002, adjusted for inflation. In Washington, this translates into recommending a per-FTE funding increase of between 70% and 80%. The panel acknowledged that this could be difficult to implement in the near term given current state budget challenges and shifting state priorities, but nevertheless stressed that “any loss of world-class quality for America’s public research institutions seriously damages national prosperity, security, and quality of life.”
- Strengthen the role of business and industry in the research partnership: The panel recommended that tax incentives be put in place to encourage businesses to invest in partnerships with universities both to produce new research and to define new graduate degree programs. It also encouraged business leaders and philanthropists to help increase the participation and success of women and underrepresented minorities in science, technology, engineering and mathematics (STEM).
- Research universities should strive to increase their cost-effectiveness and productivity: The panel recommended that universities should “strive to contain the cost escalation of all ongoing activities […] to the inflation rate or lower through improved efficiency and productivity”. However, it made no mention of the difficulties raised in the previous NRC report on productivity concerning the impact of cost-reduction measures on quality.
The panel’s recommendations are not novel: they have already been made by multiple parties in the higher education sector over the last few years. However, given the weight of the signatures on the report, this document may prove useful in raising the profile of higher education in upcoming budget battles both at the state and federal level.
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