Republican Priorities For Reauthorizing The Higher Education Act
Republican Priorities For Reauthorizing The Higher Education Act
Based on the feedback received from the public and the committees desire to reform the
law in a way that will assist students in obtaining an affordable higher education leading to
employment opportunities, the committee will promote reforms that adhere to the following
principles:
Reform will help more Americans achieve their dreams of a postsecondary education and
help secure a more prosperous future for the country.
Improving IPEDS
In order to be eligible to participate in federal financial aid programs under the HEA,
colleges and universities are required to complete the National Center for Education
Statistics (NCES) IPEDS survey.1 Currently, IPEDS requires institutions to complete 13
separate surveys capturing over 350 pages of data.2 Even with this vast data collection by
the federal government, many critical pieces of information are omitted or do not reflect the
makeup of the current college-going population.
The traditional student the first-time, full-time student directly out of high school is
giving way to the non-traditional, or contemporary, student as the new majority of
students pursuing higher education. Contemporary students tend to be older, have families
or jobs, and may be looking to quickly update their skills to reenter the workforce or find
new career opportunities. Between 2000 and 2011, the growth of contemporary students
over the age of 25 outpaced the growth of total enrollment (41 percent versus 32 percent,
respectively).3 Current policies do not reflect these sweeping changes.
Key information for several populations of students, such as the completion rates of Pell
Grant recipients, is also missing. As more institutions serve contemporary students, those
students deserve information that accurately reflects the student body at each institution.
The IPEDS data collection must be updated so it captures more than just first-time, full-time
students. It is time to improve our knowledge of all student populations to accurately
determine whether the taxpayer investment in student aid is improving access and
completion for students.
Fast Facts: Postsecondary and Beyond, National Center for Education Statistics, available at
http://nces.ed.gov/fastfacts/display.asp?id=98.
students after they arrive on campus, rather than before they sign up for college loans.
More robust and timely financial literacy support must be available.
Enhanced financial literacy will help students understand the obligations they can expect
after graduation. To achieve this goal, financial counseling should be more readily available,
more inclusive of additional student populations, and more comprehensive by including
consumer-tested financial management information.
Hahn, Ryan D., and Dr. Derek Price. College-Qualified Students Who Dont Enroll in College. Institute for Higher
Education Policy (2008). http://www.ihep.org/assets/files/publications/m-r/PromiseLostCollegeQualrpt.pdf.
6
In academic year 2011-2012, almost 42 percent of Pell Grant recipients had parents with only a high school
diploma or less, compared to 25 percent of students who did not receive Pell. U.S. Department of Education,
National Center for Education Statistics, 2011-12 National Postsecondary Student Aid Study (NPSAS:12).
7
The repayment plans include the following: standard repayment, graduated repayment, extended repayment,
income-based repayment, income-contingent repayment, income-sensitive repayment, Pay As You Earn
repayment, and an alternate repayment plan established by the Secretary of Education.
administrative fiat. While repayment options are vital, options can be improved to help
borrowers make better decisions about repaying their student debt and to ensure taxpayers
are not left with billions in unpaid loans.
Current federal policies often encourage students to take on an irresponsible amount of
debt, as documented in a recent report by the New America Foundation.8 Even the Obama
administration admits the cost of its unilateral repayment schemes are skyrocketing and
proposed changes to help rein in costs.9
Streamlining repayment plans into two options a standard repayment plan and a modified
income-based repayment plan will better serve taxpayers and students. The standard
repayment plan will remain the same and provide borrowers with a predictable monthly
payment for up to 10 years. The modified IBR plan will provide relief to struggling borrowers
by capping their monthly payments at a percentage of their discretionary income. This
option will also prevent borrowers from defaulting on student loans, an issue that is
becoming more and more troubling.10
Making the Pell Grant Program More Flexible for Todays Students
The Pell Grant program is the cornerstone of all federal student financial aid for low-income
students. The program has seen changes over the past 40 years but has never been
modernized to address the unique needs of contemporary students. The program must be
reformed to allow all students both traditional and contemporary students to draw down
federal grant aid at their own pace throughout their undergraduate education.
The Flex Pell Grant would allow a student to learn of the amount of Pell funds he or she is
eligible to receive over a six year period and then be able to draw funds as needed until the
student either completes his or her academic program or exhausts the allotted funds. This
policy would allow an annual adjustment to the students awarded funds if his or her
economic situation changes from year to year. The Flex Pell Grant would better address the
needs of the contemporary student, who may not be attending classes on the traditional
academic schedule; it would incentivize continuous enrollment, as well as higher retention
and graduation rates for all students in the Pell Grant program.
Delisle, Jason and Alex Holt, Safety Net or Windfall?: Examining Changes to Income-Based Repayment for Federal
Student Loans, New America Foundation, October 2012, available at
http://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf.
9
The income-based repayment plan had an initial estimate of $1.7 billion but was re-estimated to cost $7.6 billion
a 347 percent increase. White House Ups Cost Estimate for Income-Based Repayment, EdCentral, April 16,
2014, available at http://www.edcentral.org/white-house-ups-cost-estimate-income-basedrepayment/#sthash.8hHVxv4e.dpuf.
10
The three-year cohort default rate is 14.7 percent. Three-Year Official Cohort Default Rates for Schools, Federal
Student Aid, U.S. Department of Education, available at
http://www2.ed.gov/offices/OSFAP/defaultmanagement/cdr.html.
11
College Cost Reduction and Access Act, P.L. 110-84; Higher Education Opportunity Act, P.L. 110-315; and Health
Care and Education Reconciliation Act of 2010 (SAFRA Act), P.L. 111-152.
drivers of the Pell Grant program, in 2007 Congress further exacerbated the rising cost of
the program, and it is now expected to face a funding gap in a just few short years.13
Since the Pell Grant program was recklessly expanded, its ability to serve the neediest
students is now in jeopardy. The program must be put back on stable footing to ensure it
can help low-income students for generations to come.
The Pell Grant maximum award increased from $4,050 in 2006 to $5,730 in 2014.
The Pell Grant program is expected to face a $2.25 billion funding gap in FY 2017. Discretionary Baseline,
Cumulative Surplus/Shortfall, and Funding Gap of the Federal Pell Grant Program CBOs April 2014 Baseline,
Congressional Budget Office, April 2014, available at
http://www.cbo.gov/sites/default/files/cbofiles/attachments/44199-2014-04-Pell_Grant.pdf.
14
Trends in College Pricing, The CollegeBoard, 2013, p. 10, available at
http://trends.collegeboard.org/sites/default/files/college-pricing-2013-full-report-140108.pdf.
15
Grade Change: Tracking Online Education in the United States, The Sloan Consortium, 2013, available at
http://www.onlinelearningsurvey.com/reports/gradechange.pdf.
13
Kelly, Andrew P. and Frederick M. Hess, Beyond Retrofitting: Innovation in Higher Education, Hudson Institute
Initiative on Future Innovation, 2013, available at
http://www.hudson.org/content/researchattachments/attachment/1121/beyond_retrofittinginnovation_in_higher_ed_(kelly-hess,_june_2013).pdf.
national priority. To better serve these vulnerable students, reforms are needed to improve
college access programs and maintain vital institutional aid programs.
During the 2010-2011 academic year, institutions dedicated 826,632 hours and almost $29 million to filling out
IPEDS surveys. This estimate increased to 850,320 hours and almost $31 million for the 2012-13 academic year.
National Center for Education Statistics, Institute of Education Sciences, U.S. Department of Education. IPEDS
2011-2014 Supporting Statement Part A, OMB Paperwork Reduction Act Submission (OMB No. 1850-0582 v.10).
Submitted February 2, 2011.
18
Association of Private Sector Colleges and Universities v. Duncan, 870 F. Supp. 2d 133 (D.D.C. 2012), and 930
F. Supp. 2d 210 (D.D.C. 2013).
19
Amendment A084 to Full-Year Continuing Appropriations Act of 2011: Roll Vote No. 92, Congressional Record
House 157-27, February 18, 2011, pp. H1234-1235. and Supporting Academic Freedom through Regulatory Relief
Act, U.S. House of Representatives Report 113-205, September 10, 2012, pp. 5-6.
to equip their teachers with the training necessary to success in the classroom and most
programs do not recruit high-achieving students or ensure strong clinical experiences for
students.20 While policies surrounding teacher preparation and licensing requirements are
primarily a state responsibility, there are provisions within the HEA that need to be
reformed.
The federal government operates more than 82 programs across 10 agencies related to
teacher quality. Most programs overlap with scant coordination across the federal
government.21 The existing programs fragment taxpayer resources and provide little
information to policymakers on what works. These programs must be streamlined and
better coordinated so states and school districts can best utilize the resources available to
improve teacher quality.
Not only do we need to streamline the maze of programs, we also need to cut through the
costly red tape tying the hands of school administrators. The law provides a long list of
annual reporting requirements institutions, states, and the secretary must publicly disclose.
States must enter data in up to 440 fields and institutions complete 250 fields on a form
designed by the Department of Education. Most of the data collected is input-focused rather
than output-focused, which means we know how many teacher candidates participate in
these programs but we do not know if they actually improve teaching skills and student
outcomes.
Provisions in the Student Success Act (H.R. 5) move the tenets and focus of the Teacher
Quality Partnership program into the Elementary and Secondary Education Act, which will
help facilitate partnerships between school districts and institutions of higher education to
reform preparation and better connect pre-service training to in-service practice. In
reforming teacher preparation programs, any reporting requirements must yield useful
information that measures the effectiveness of these programs without adding an undue
administrative burden on states and institutions.
Greenberg, Julie, Kate Walsh, and Arthur McKee, 2014 Teacher Prep Review: A Review of the Nations Teacher
Preparation Programs, National Council on Teacher Quality, June 2014, available at
http://www.nctq.org/dmsView/Teacher_Prep_Review_2014_Report.
21
Teacher Quality: Proliferation of Programs Complicates Federal Efforts to Invest Dollars Effectively, Government
Accountability Office, 2011, available at
http://www.gao.gov/modules/ereport/handler.php?1=1&path=/ereport/GAO-11318SP/data_center/Training,_employment,_and_education/Teacher_quality:_proliferation_of_programs_complicat
es_federal_efforts_to_invest_dollars_effectively.
22
The CHEA Initiative: Final Report, Council for Higher Education Accreditation, November 2012, available at
http://www.chea.org/pdf/TheCHEAInitiative_Final_Report8.pdf.
10
Accreditation plays an important role in promoting quality programs and federal policies
should protect the balance of responsibility that has always existed, while also ensuring the
accreditation process is rigorous, transparent, and open to new ideas for delivering a
postsecondary education. Doing so will empower students, support innovation, and protect
the taxpayer investment in higher education.
Conclusion
It has long been a national goal to help students access a college education. As we continue
working toward that goal, a number of challenges have emerged. Almost half of all students
seeking a degree do not make it to the finish line within six years.23 College costs are
skyrocketing. Meanwhile, we are investing near record amounts of taxpayer dollars helping
students finance their higher education. It is estimated that in a few short years nearly half
of all jobs available will require some type of college degree.24 The current path we are on
means fewer Americans will be equipped to compete and succeed in our modern economy.
The committee will continue its work to reauthorize the Higher Education Act in order to
help reverse this unsustainable trend. Students from all backgrounds should have access to
a quality higher education and taxpayers deserve to know their hard-earned money is being
well spent. In the coming weeks and months, the committee intends to introduce a series of
bills to reauthorize the law that reflect the core principles developed through more than
three years of oversight and public engagement. These principles will strengthen Americas
higher education system for the good of students, workers, taxpayers, and families.
23
Fast Facts: Graduation Rates, National Center for Education Statistics, available at
http://nces.ed.gov/fastfacts/display.asp?id=40.
24
Doing Better for More Students: Putting Student Outcomes at the Center of Federal Financial Aid, HCM
Strategies, 2013, available at
http://www.insidehighered.com/sites/default/server_files/files/Technical_report_fnl_embargoed.pdf.
11