Representative Tom Reed has announced a new version of his plan to regulate endowments and push colleges to provide more student aid and minimize tuition increases. Reed, a New York Republican, may have more clout now than in the past -- he was recently named a vice chair of President-elect Donald J. Trump's transition team.
The proposal, expected in legislation in the new Congress, would:
- Require colleges with endowments of more than $1 billion to show that they are using at least 25 percent of their investment gains "to reduce the costs of attendance for students from middle- and working-class families." Those that fail to do so would face taxes on their earnings.
- Allow students to receive Pell Grants in the summer.
- Require colleges to report more information -- and make it easier to find -- about benefits provided to senior officials.
- Create a Promoting Lifelong Accountability Now program. Under the program, colleges would be required to submit plans to assure that tuition increases at less than the rate of inflation. Rewards and penalties would be established for those that succeed or fail at their plans.
Generally, college leaders back the idea of Pell Grants in the summer and oppose the other provisions.
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