News, Views and Careers for All of Higher Education
Sept. 25, 2006
There is no contest: By far, college officials’ favorite element of the final report of the Secretary of Education’s Commission on the Future of Higher Education is its clarion call for a major expansion of need-based financial aid, specifically in the form of a huge influx of funds into the federal Pell Grant Program. When Secretary Margaret Spellings lays out her vision for how to carry out the panel’s report in a speech on Tuesday, higher education leaders and lobbyists will be listening intently, among other things, for signals about how aggressively the Bush administration will pursue this goal.
In virtually all of their public comments to date, most recently Thursday’s statement by the six leading higher education associations, college leaders have trumpeted the commission’s Pell Grant recommendation, not least to keep up public pressure on administration officials and members of Congress.
But privately, more than a few say they are worried about whether the massive increase in Pell funds is realistic. And if it is not, they say — either because the money won’t be there or policy makers’ commitment to it is lacking – college leaders who endorsed the overall report (and the many tough requirements it would impose on higher education) might come to regret that support.
Some recent developments suggest that they might be right to be concerned.
Last week, for instance, the American Council on Education circulated an analysis estimating that the Spellings Commission’s recommendation to increase the average Pell Grant over five years so that it covers 70 percent of the the average in-state tuition at public four-year colleges (instead of the current 44 percent) would cost the government anywhere from $9 to $12 billion above the $13 billion it currently spends, depending on how much enrollment increases during that period.
Assuming no enrollment increase at all, just raising the Pell Grant’s “purchasing power” to 70 percent of in-state tuition would mean increasing the size of the average grant to $3,845 and the maximum award to $6,150, up from the current top grant of $4,050. That would cost an additional $9 billion a year. Assuming the 7.5 percent enrollment increase that the Education Department projects between 2006 and 2011, the costs would mount to $10.2 billion more a year. And if the availability of more need-based financial aid were to persuade more low-income students to pursue a higher education – resulting in a 15 percent increase in Pell Grant participation – the cost of meeting the 70 percent threshold would rise to $24.9 billion, the ACE analysis finds.
“Accomplishing this goal will, in short, require the largest and most sustained increase in federal funding for Pell Grants in the program’s history,” Melanie E. Corrigan, associate director for National Initiatives & Analysis at ACE, wrote in the memo. “The amount of money is considerable, but so is the opportunity,” she said, adding: “The impact of a much larger Pell Grant award for low-income students as called for in the commission’s report could easily have as profound an impact on our nation as the G.I. Bill did at the end of the Second World War.”
College leaders are almost certainly not using lofty language like that accidentally. Describing the commission’s proposal in grand terms may have the effect of building the public’s fascination with and support for the Pell increase and, in turn, turning up the pressure on policy makers to enact such an increase.
A Caveat From the Chairman
But the head of the Spellings commission, Charles Miller, sent his own signal last week that challenged college leaders’s rhetoric on the Pell issue. Commenting on the statement by the “big six” higher education associations about the commission’s work – which said that the groups “strongly support the bold recommendation of the Secretary of Education’s Commission on the Future of Higher Education to increase the average Pell grant to 70 percent (from 48 percent in 2004-05) of the average in-state tuition at public four-year colleges” — Miller warned that college leaders were reading the panel’s report selectively.
“There is a condition we laid that gets left out in the telling – and it is going to be an important one,” Miller said. “We made a conditional recommendation that Pell would have that increase over a period of time if there was a moderation in growth in tuition.”
Specifically, Miller noted, the paragraph in the commission’s report that calls for the mammoth increase in Pell funds includes a sentence that says” [E]ven with significant additional federal investment, there is little chance of restoring the Pell’s purchasing power if tuition increases absorb most or all of the new money.” Two paragraphs later, the panel’s report describes as an “important benchmark” the idea that “the growth in college tuition not exceed the growth in median family income over a five-year period.”
As Miller sees it, then, the commission’s Pell Grant recommendation is directly tied to “the idea that tuition increases would be moderate over the period, like 3 percent,” he said. “The accuracy needs to be there – it’s the two things, not just the one. There has to be some understanding that if that kind of funding comes into the system, it has to be matched by success in keeping tuition low.”
Although the ACE analysis includes some recognition of the relationship between potential increases in Pell funds and tuition growth, college leaders, in embracing the commission’s proposal on the Pell expansion, have not necessarily seen the two as a quid pro quo. (The letter from the six associations did clearly state, as its second major point, that colleges must do more to keep college affordable.)
If Spellings and other policy makers accept Miller’s suggestion that a significant Pell increase should be dependent on colleges’ keeping their tuition increases to the rate of inflation, that could dampen the enthusiasm with which higher education officials have embraced the commission’s Pell proposal – and diminish even more their overall support for the panel’s work.
Another thing to listen for, perhaps, in Spellings’ speech Tuesday.
Want it on paper? Print this page.
Know someone who’d be interested? Forward this story.
Want to stay informed? Sign up for free daily news e-mail.
Advertisement
I entirely support the increase in the Pell Grants. Not only that but I suggest that the FAFSA and what and how it considers cases needs to be reworked too, as it does not consider parental loans outstanding other children in the family. Thus, the parents with a “gap” in their children, who’ve already helped and assisted their older children get through college are penalized when the youngest comes through, as it looks as if this was the “only” child the parent has/had. A bachelor’s degree, here in the Northeast, where the price of living is high, yeilds you between $10-12 hour. That is not enough to pay a rent. Closing students out of even attaining a bachelor’s degree (the gateway to a graduate program) serves no one, the student, their family nor society.
am smith, at 9:30 am EDT on September 25, 2006
In theory sjz’s comment is okay...but, in the real world the playing field in high school is not even and not all students get the opportunity to take classes that will allow them to show their capabilities (no AP, etc). There are many students out there that need an opportunity to get away and be allowed a chance to shine. However, I also have to admit that there are some who make it to college who are not four year degree students but who would be very successful with specific job training.In other words, we need both need-based and merit-based to be most productive.
jody, at 9:31 am EDT on September 25, 2006
America’s system of higher education was not founded on a basis of pure merit. What made it an American system of higher education was the fact that we infused our ideals of equality of opportunity into the system. If we base entry into some form of higher education on merit alone we are disgracing our system.
MC, at 9:31 am EDT on September 25, 2006
SJZ: What is merit? Is it the ability to spend thousands of dollars on Kaplan programs and private tutors to raise SAT scores? The fortune to have been born in a school district with enough money to offer 15 AP classes? The problem with your theory of merit-based aid only is that it perpetuates the cycle of poverty for those in need. Unless you are suggesting that merit based aid is handed out to the top, say, 10% of every high school class regardless of the school’s standing or the kids’ SAT scores, the opportunity to break the cycle of poverty will not be available. Then again, maybe you are suggesting that the cycle of poverty is good, since “there are too many jobs that don’t require a college education.” Seems like you’re also suggesting that school success is dependent only on some set of internal factors that have nothing to with environment, family situation, or class. Which is counter to pretty much every piece of research that has been done on the subject. Read up.
SRK, Attorney, at 9:31 am EDT on September 25, 2006
I’m a bit torn on the issue of tuition increases. I don’t know enough to say with any degree of certainty if higher ed. is inflating tuition, which I suppose could be true, however, I wonder how on earth the commission would expect universities to keep tuition pegged to income, when expenses in America (real estate prices, cost of living, etc.) are most decidely NOT. Can anyone tell me what I’m missing here?
J, at 11:20 am EDT on September 25, 2006
I for one would like to have more information on the “too many jobs that do not require a college education.” Fundamentally, do they pay a living wage? I for one see this as a primary factor in the social disintegration of our society. How much income must one earn to purchase an 1100 sq. ft. modest home in your town? What is the average home rental fee in your town? How much income would the average person need to have to pay the mortgage or rent on such a home and still be able to meet all the necessities (needs, not wants and desires)? Would the average person, with no college education make enough money to live in decent living conditions and adequate food, clothing and transportation? Could they afford to have a family? I fear not. Most of the middle-class labor intensive blue collar jobs no longer exist. Today one must be literate and computer skilled. We like to think that our young people are both but the truth is that although they may be able to text message faster than I can keyboard, a great majority, don’t read, can’t spell, and cannot attach a document to an email. Video games may be a great eye-hand coordination builder but they excite the brain and agitate the average individual. The cell phone and its multimedia system allow the user to truncate and obfuscate the language to such a degree that many students are unable to write a complete sentence and worse yet, are irritated that one would insist that they do so. The more we de-intellectualize our daily lives the more we will suffer the loss of jobs to workers abroad while we de-stablize our society. I’m sorry but I belive sjz is sorely ill-informed about the number of living wage jobs available to those who lack some level of post-secondary education.
Wanda Clifton-Faber, PhD, Project Director at BMCC, at 1:30 pm EDT on September 25, 2006
Surely no-one really believed that this Administration would propose or this Congress pass a major increase in Pell grants.
jim, at 1:55 pm EDT on September 25, 2006
President Bush actually recommended an increase of $100 in the maximum PELL award in his last budget. Congress then nixed it in their budget and left PELL flat (except for those in math and science related disciplines “carrying a full-time load.)
While there are indeed jobs that both pay well and do not require a college degree, most of those jobs do require some level of post-secondary education or training. Traditional careers even in the trades now have scientific, mathematic and/or technological components that require some level of college education beyond high school embedded within certification.
There are precious few remaining well paying jobs requiring merely a high school diploma and those jobs are not plentiful in major population centers with high costs of living. Detroit and the Northeast used to be bastions for such jobs which are now disappearing rapidly and just as quickly changing the faces of the towns and cities affected.
KED, College President, at 5:20 pm EDT on September 25, 2006
With respect to whether one can make a living wage in non-professional jobs is immaterial to the cost of college tuition. Even if someone in that position had an unnecessary college degree, they would still be earning the same wage.
I agree with Jody and others who are concerned about the equality of preparation. That too, though, is a different problem. Instead of setting kids up for failure by admitting under-prepared students to college and paying their way, how about if we focus on preparing them better? Again, the failure of our primary and secondary schools is a separate issue from the cost of a college education.
sjz, at 6:45 am EDT on September 26, 2006
I have differing views on Financial Aid. This is what I think:
Institutions should be forced to reduce costs for education for students in order to receive Pell Grants. I think there should be a formula where the schools have to aggree to set tuition levels for Pell Grant recipients in order to receive the funds.
I would also take one more step. I would require the School to back the students by paying 20%-40% of the students tuition out of their own pocket. In other words they would be required to put their own money where their mouth is. It is one thing when a school receives money from the government, and it is another issue entirely when the school has to make an investment in the student.
The cost of books is a major expense for schools and students. I think paying $100.00 or more for a book is highway robbery. This is a major area where schools need to start demanding some help from lawmakers. I find it unjustifiable what students are forced to pay for a book that they will use for few months and sometimes not even be able to sell back to the bookstore. There needs to be some pressure applied to this industry. There seems to be no real competition for a lower priced textbook.
I think this investment by the school would make a school more interested in the welfare of students, and more vested in their success. Schools may also be better advised to dropping students from financial aid sooner if it looks like they are able to upkeep higher standards.
Another option may be to reward institutions based on their graduation rate from valid 2 and 4 year degree programs as well as their students success rate at finding employment. The Student’s ability to find employment is the best way to judge the success of an program. There is no better way to quantify success by an institution than to see a high employment rate of graduates.
Charles, Programmer Analyst at Lewis & Clark Comm Coll, at 2:55 pm EDT on October 9, 2006
Advertisement
or search for jobs directly.
The University of Minnesota is a premier employer and a talent magnet attracting leading faculty and staff from around the ... see job
The Department of Physics and Astronomy at the University of Rochester invites applications for a tenure-track faculty ... see job
The School of Nursing at The University of California, Los Angeles (UCLA) invites applicants for the position of Associate ... see job
Job Summary The Developer Associate will partly be responsible for working on a variety of applications for ... see job
Job Summary The University of Georgia seeks a strong and dynamic leader to be Director of the Hugh Hodgson ... see job
The University of Minnesota is a premier employer and a talent magnet attracting leading faculty and staff from around the ... see job
Areas of teaching include child language as the focused area and consideration in developing /expanding coursework in other ... see job
WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICT ACADEMIC PART-TIME EMPLOYMENT OPPORTUNITY FOREIGN LANGUAGE — Arabic — ... see job
Job Description: Ithaca College is currently accepting applications for a full-time Manager of Computer ... see job
Join a vibrant community whose excellence is reflected it its diversity and student success. West Chester University of ... see job
OK, here’s a statement that should spark some debate—We should not be increasing the Pell funds, we should be eliminating them and all other need-based government aid.
How can we on the one hand lament how we are falling behind in the world and on the other hand reward mediocrity? I don’t believe that everyone needs to go to college. There are too many jobs that just don’t require a college education.
What we need to do is provide merit-based aid so that any college-bound student, regardless of their financial means, can attend college. Whether it is the [stereotypical] inner-city poor, the suburban rich, or the squeezed middle-class, if a student has shown that he or she has what it takes to succeed in college, then thay should be given that chance.
sjz, at 8:30 am EDT on September 25, 2006