Higher Education

and the Federal Government

Northwest Commission on Colleges and Universities

Terry HartleFebruary 18, 2010

2

20103

“Yes We Can” Meets Legislative Reality

Key Challenges for 2010

• Election coming/Public restless

• Senate is a mess

• Federal government is broke

4

Higher Education Policy

• Stimulus package

• Implementation of new GI Bill

• President’s proposal

• FY 2011 Budget

5

President’s Proposal

• First in world by 2020

• Eliminate bank-based Federal student loans

• Make all schools Direct Lending

• Pell Grant entitlement

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Student Financial Aid and Fiscal Responsibility Act (SAFRA)

• SAFRA passed 253 to 171 on September 17, 2009

• Senate action stalled by health care reform

7

Big Issues in Student Loan Reform

• Money and power to the states

• Can Department of Education implement this on time?

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Federal Aid Policy: What is next?

• Soon: Congress acts on President’s 2010 Proposal

• July 1: Implementation of Direct Lending (?)

• July 1: HEOA reauthorization regulations

• New Rulemaking process underway

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Higher Education Policy Issues

• Federal control and oversight

• College prices

• Accreditation

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Federal Support* (2008 dollars)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

'65 '72 '76 '78 '80 '81 '86 '92 '93 '97 '98 '05 '06 '07 '08

Mil

lion

s

*Includes student aid, tax benefits, and R&D at colleges and universities

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Price of College

Public, 2-yr

Public, 4-yr

Private, 4-yr

Median Family Income

New Car

Prescription Drugs

Medical Care

Housing

-10%

0%

10%

20%

30%

40%

50%

99-00 '00-'01 '01-'02 '02-'03 '03-'04 '04-'05 '05-'06 '06-'07 '07-'08 '08-'09

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Accreditation

• What is credit hour?

• Is it a reliable measure that ensures quality?

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