Obama higher education series

Grading Obama on Higher Education: Part II

By Matthew Lynch

Several weeks ago, I discussed President Obama’s education record in my introduction to education class. In particular, we talked about P-20 education, which begins in preschool and ends with graduate school. Predictably, the debate became quite contentious. Most of us had to agree to disagree on the most central points of educational politics. Partly in response to this debate, though, I decided to write an assessment of Obama’s education record in several areas of P-20 education issuing a letter grade (A-F) to make my position on his record abundantly clear.

Here is part II of my assessment of the president’s major initiatives in postsecondary education.

Plans to Make College More Affordable. While not a direct K-12 initiative, the President’s desire to make college education affordable for all Americans will impact future K-12 classrooms. In August, 2013, the President announced plans to assign a ratings systems to colleges by the 2015 school year, factoring tuition, graduation rate, debt and earnings ratios of graduates, and percentage of low-income students.

The grand plan? To base the amount of federal financial aid colleges receive on the rankings system by 2018. The overall principle is not to call out colleges but rather to make them more accountable to students, to ensure that every American is able to attend college if they want to. Long term, this initiative aims to enhance teacher quality in the classrooms, particularly in urban settings. Having more lower-income college graduates should enhance the entire education system and the college scorecard initiative is a step in that direction based on research, including evidence suggesting that the most effective teachers are generally those who come from the same background

Recently, President Obama also made waves when he visited three college campuses and talked about the possibility of implementing a rating system to provide the public with greater details about the total cost, graduation rates, and alumni earnings of individual colleges and universities. Students choosing schools with higher ratings would have more access to Pell Grants and affordable loan programs. The plan is twofold. First it aims to put more useful information into the hands of consumers. Second, it aims to provide better affordability for young people who seek out higher education.

The rising cost of a college degree has been a concern of the Obama administration throughout both terms in the White House. College graduates in 2010 left their schools with an average of $26,000 in debt, leading to higher student loan debt in America than credit card debt.

College Scorecard Proposal. Obama’s “college scorecard” proposal is just one more step in the right direction. The system aims to make colleges more accountable to the federal government. Right now federal student aid is doled out mainly on college enrollment numbers, to the tune of $150 billion annually, and there is no accountability for that money.

Numerous publications claim to have the perfect formula for ranking the “best colleges and universities” but none are officially sanctioned by the government. The President’s ranking plan would avoid the fluff of other rating systems and address the core of educational matters: cost, graduation rates, and employment rates for graduates.

The college ranking plan aims to benefit minority students in particular as well. Though minority college student numbers are rising, 61 percent of college students in 2010 were considered Caucasian compared to just 14 percent Black students, 13 percent Hispanic students and 6 percent Asian or Pacific Islander students. Based on these statistics alone, minority students are at a disadvantage when it comes to attending and graduating from college.

A rankings system providing more grant money and more affordable loan options to students aims to make the dream of a college a reality to more minorities. As more first-generation minorities attend colleges, choosing schools with high graduation rates (many of which likely have strong guidance policies in place) and good job placement will mean more career successes. Not only does the plan aim to drive down individual costs of college attendance, but it aims to ensure that those same students complete their college training and find work. A ranking system with federal oversight will aim to put pressure on institutions of higher learning to perform well, benefitting attendees.

Solely on higher education record, I will have to give President Obama an A. The Obama administration’s education agenda began in the midst of one of the worst economic downturns since the Great Depression. Since his inauguration, President Obama and Arne Duncan have aggressively tackled the tough problems in higher education, and have made genuine progress. He has certainly earned his A in my opinion.

 

Grading Obama on Higher Education: Part I

By Matthew Lynch

Several weeks ago, I discussed President Obama’s education record in my introduction to education class. In particular, we talked about P-20 education, which begins in preschool and ends with graduate school. Predictably, the debate became quite contentious. Most of us had to agree to disagree on the most central points of educational politics. Partly in response to this debate, though, I decided to write an assessment of Obama’s education record in several areas of P-20 education issuing a letter grade (A-F) to make my position on his record abundantly clear.

To start things off, let’s take a look at the president’s major postsecondary education initiatives.

Expansion of Community Colleges. In July, 2012, President Obama proposed the American Graduation Initiative, intended to put more money and planning into community colleges, helping to promote more affordable options and high levels of training for all prospective college students. As part of this initiative, the Health Care and Education Reconciliation Act will pour $2 billion over the course of four years into an expansion of career training at community colleges, focusing on the high-demand health care field.

According to the White House website, the goals of the Obama community college program include:

• Teaching basic skills through remedial and adult education.
• Further developing online courses for more student flexibility and accelerated programs.
• Creating educational partnerships to give students more course options.
• Building partnerships with businesses that would allow worksite education that has current labor market emphasis.

Enforcement of the DREAM Act. The Development, Relief and Education for Alien Minors, or DREAM, Act will an estimated 2.1 million young people in the U.S. with access to an education and amnesty from deportation. While Obama’s administration has stressed the ethical points of this act, rightfully so, it offers may economic benefits for America as well.

The Center for American Progress estimates that the DREAM Act will create 1.4 million new jobs by the year 2030 and that it will infuse some $329 billion into the U.S. economy.

Pell Grant Increases. The President has also pledged to double the amount of funding available in the form of Pell Grants over the next three years. Unlike student loans, Pell Grants do not need to be repaid. For the 2011–2012 school year, the maximum award amount was $5,550.
While a Pell Grant cannot cover all of the college costs, it goes a long way towards covering in-state tuition or community college courses. All students can apply for the program, too, and students receive aid awards based on financial need andcost of attendance.

By 2017, the maximum amount awarded to students is expected to rise to $5,975. By 2021, the Congressional Budget Office estimates that 820,000 more Pell Grant awards will also be available. The money will come, in part, from restructuring to the distribution of federal student loans. By implementing a direct student loan program, instead of a bank-subsidized one, $68 billion will also be saved by the year 2020.

Higher College Tax Credits. The Obama-Biden administration plans to triple the current tax credits available to students and parents of students paying college expenses, too. The American Opportunity Tax Credit gives a $2,500 tax credit maximum per student and students can claim it for four years.

According to the IRS, up to 40 percent of the credit is refundable, up to $1,000, to people that file even if no taxes are owed. In addition to courses and fees, the new tax credit also covers related costs like books, supplies and required class materials.

Income-Based Loan Repayment. President Obama has often said that he believes that paying for college should not overwhelm graduates. As a reflection of this, he has pledged to expand income-based repayment options to keep the bills from college from becoming unmanageable. Around two-thirds of college students have debt of over $23,000 upon graduation. This can be especially difficult for students that want to enter public service jobs and those who face unexpected financial hardships like unemployment or serious illness.

Beginning in 2014, students can limit payments to 10 percent of income – a reduction from 15 percent in the previous law – which means a reduction of $110 per month for unmarried borrowers that owe $20,000 and make $30,000 per year. An estimated 1 million borrowers will be positively impacted by this change in repayment options. In addition, borrowers that make monthly payments will be allowed debt forgiveness after 20 years. Public service workers like nurses, teachers, and military employees will receive debt forgiveness after just 10 years.

This concludes Part I of “Grading Obama on Higher Education.” In Part II, I will continue to assesses President Obama’s performance in the area of higher education..