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Aid Expert Appointed (Finally)

April 21, 2009

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WASHINGTON -- For weeks, those who watch federal higher education policy have played, with varying degrees of excitement and nervousness, a parlor game unofficially called "Will Bob or won't he?" Bob as in Robert Shireman, the Clinton White House aide and student aid advocate who was widely expected throughout the last decade to become a central player in higher education policy whenever a Democrat took back the White House.

Shireman was named to be a key adviser to the transition team of then-President-elect Barack Obama in November, but he told many close colleagues at the time that he did not plan to take a full-time job in the administration because he and his family were firmly ensconced on the West Coast, where he has worked for several nonprofit groups on college access issues. When the department announced in February that Shireman would take on a three-to-six-month role advising Education Secretary Arne Duncan on higher education, he again rebuffed suggestions that he'd be coming to Washington for good: "I'm looking at this as a temporary job," he said.

But Monday, Duncan announced that Shireman would join the administration on a permanent basis, as deputy under secretary for postsecondary education, which a department spokesman described as a new position that would not require Senate confirmation, unlike the assistant secretary for postsecondary education job that many observers had expected Shireman to fill.

In the job, said spokesman John McGrath, Shireman will work with the newly appointed under secretary of education, Martha J. Kanter, to set the goals and establish policy for all of ED's higher education programs, including the office of postsecondary education and the Federal Student Aid office.

Shireman could not be reached for comment, and it is not clear what led him to change his mind about returning to the federal executive branch and Washington. He has been commuting from the Bay Area during his interim appointment, but has said he is loathe to do that permanently.

His appointment will be welcomed by most higher education lobbyists and advocates for students, with whom Shireman has worked closely and who generally see him as supportive of colleges and students. As founder and president of the Institute for College Access and Success, and before that as head of the higher education program at the James Irvine Foundation, Shireman pushed to make college more affordable for students from low-income families. As a White House aide, he helped implement the Hope and other higher education tax credits, and before that Shireman worked on higher education and other issues for the late U.S. Sen. Paul Simon of Illinois.

But fans of Shireman haven't been the only ones breathlessly waiting to find out whether he'd join the administration. For the last several weeks, analysts who track the for-profit higher education sector have regularly sought information from journalists and others about whether a Shireman appointment is likely, reflecting a perception among leaders in that sector that Shireman views for-profit colleges unfavorably and will promote policies that will hurt them (and, in turn, their stocks, which explains the analysts' interest.).

Over the years, Shireman has worked closely with consumer advocates on student loan and other issues, and many of them look askance on for-profit colleges because they believe some institutions use predatory recruitment practices to enroll low-income students who can't afford to pay for college. But he has not written or spoken widely about the career college industry, so it's not at all clear that he'll be the enemy to the sector that some might fear.

If advocates for for-profit colleges wonder if Shireman will take positions they don't like, supporters of the student loan industry don't have a lick of doubt. They were always nervous about a Shireman role in the administration, and his actions this winter while an adviser to Duncan have shown they were right to be. Shireman is widely seen as the architect of Obama's plan to kill off the guaranteed student loan program (see related Views article) and originate all loans out of the government's competing direct loan program, which was created when Shireman worked in the Clinton White House.
Lenders are gearing up to fight the Obama plan, but Shireman is banking on the fact that college leaders and Congressional Democrats will ultimately support it because it will free up tens of billions of dollars to ensure a regular and steadily growing stream of funding for the Pell Grant Program.
It is possible that Congressional supporters of the loan programs (and for-profit colleges) would have gunned for Shireman had he been nominated to a position (like assistant secretary for postsecondary education) that requires Senate confirmation.

But the latter job also entails significant amounts of day-to-day administrative duties, including overseeing sometimes mundane rule making procedures and other matters that aren't seen as playing to Shireman's strengths or his interests. So it may be more likely that Shireman was more inclined to move back to D.C. permanently for a job in which he'd have a freer hand in setting policy.

The new job would seem to fit the bill.

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Comments on Aid Expert Appointed (Finally)

  • Senate confirmation
  • Posted by Craig on April 21, 2009 at 8:00am EDT
  • The Assistant Secretary position does require Senate confirmation. In fact, for decades, the Assistant Secretaries at the agency reported directly to the Secretary of Education. Secretary Spellings temporarily changed the hierarchy, so that half the Assistant Secretaries (including postsecondary) report to the Under Secretary and half of them report to the Deputy Secretary. This structure seems to have continued into the new Administration.

  • What a Radical Move!
  • Posted by Mythbuster on April 21, 2009 at 9:00am EDT
  • An aid advocate in the dept of Ed? A student advocate in the dept of Ed? A low income advocate in the dept of Ed? Clearly another step towards Socialism!

    This is good news for students and Shireman will not make life easy for non-profit higher education. However, his challenges will be directly student-oriented and not follow the corporate-model hogwash of the last administration.

  • We Support Bob Shireman's Appointment
  • Posted by Harris Miller , President/CEO at Career College Association on April 21, 2009 at 9:30am EDT
  • CCA and its member schools have worked constructively with Bob Shireman over the years, and we look forward to his assuming his new role. He is a strong supporter of increased access to higher education, as is the President and the Secretary, and as are we. He is a strong proponent of students having a debt load that is commensurate with their ability to pay, as are we. He believes strongly that students should first obtain the maximum Federal and state grants and loans before turning to private loans, as do we. He is supporting the Obama proposal to increase Federal grants and loans, as do we. I can assure you that if Bob had been nominated for a position that requires Senate confirmation, CCA would be supporting him, not "gunning for him."

  • Shireman is a good choice
  • Posted by Richard Jerue , President at The Art Institute of Charleston on April 21, 2009 at 10:15am EDT
  • I've known Bob Shireman for years. He is an excellent choice. He is smart and understands student aid. No sector has anything to fear from Bob. He is reasonable and fair. President Obama and Secretary Duncan have made a great choice.

  • Isn't Bob Shireman a lobbyist?
  • Posted by Relevant Critic on April 21, 2009 at 1:30pm EDT
  • I must not have received the memo. I recall that during the campaign, President Obama said lobbyists would not hold office in in his administration. I also recall that Bob and his "Project on Student Debt" not only conducted a great PR campaign in support of income-based loan repayment and even drafted the legislation that is now in the Higher Education Act. He is a great lobbyist.

    As I said, I must have missed the memo.

  • a skeptic
  • Posted by PBJ on April 21, 2009 at 3:00pm EDT
  • Don't celebrate so quickly. He's driven by a too narrow interpretation and has bullied colleges and universities based upon Pell #s without noticing (or much interest) in how "over awarding" (and absurd construct) means in some colleges Pell "eligible" would be a more accurate representation of service to lower income students.

    Having sat in meetings where he flatly accused college officials oflying where he disagreed with their data, I don't see so much reason to celebrate even as I share his hope for increased access. I hope he works to actually fix the aid system, not beat up on colleges, already strained.

     

  • Hooray!!!
  • Posted by SJ Jackson , Early Outreach Inc. on April 22, 2009 at 4:30pm EDT
  • No one more qualified than the vastly experienced Robert Shireman. Deluded people & FFELP inducement benefactors will make up any derogatory comment or name they chose for Direct Lending. But, unlike FFELP, robbing students and families blind plus personal GREED is not a Direct Lending feature or program administrative benefit. Viva DL and increased higher ed opportunity. Congrats to Mr. Shireman.