Federal UpdateState Higher Education Executive Officers
2011 Higher Education Policy Conference
David A. Bergeron Rosemarie NassifDeputy Assistant Secretary for Senior Advisor to the Policy, Planning, and Innovation Assistant Secretary for Office of Postsecondary Education Postsecondary Education
Background How did we get here?
Regulatory Activity Budget Proposals Gainful Employment Meeting President Obama’s
2020 College Completion Goal
TOPICS
Percentage of Undergraduates Applying for Aid
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
0
10
20
30
40
50
60
70
80
90
1972
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005Low-income
High-income
Pell Grant Max
Linear (Low-income)
Linear (High-income)
Percentage of High School Graduates Enrolling the Fall After Graduation by
Family Income
Federal Student Aid Available by Type of Aid
2005 2008 2010 2011 CR 2012 Request
$0$20,000$40,000$60,000$80,000
$100,000$120,000$140,000$160,000$180,000
GrantsLoansWork-Study
Fiscal Year
In billions of dollars
The share of students receiving aid has increased but not uniformly across all sectors of higher education.
Priva
te for
-profit
2-ye
ar
Priva
te for
-profit
4-ye
ar
Priv
ate fo
r-profi
t less-
than-2
-year
Priv
ate no
t-for-p
rofit le
ss-tha
n-2-ye
ar
Priva
te no
t-for-p
rofit 2
-year
Priva
te no
t-for-p
rofit 4
-year
Publ
ic 4-ye
ar
Pub
lic les
s-tha
n-2-ye
ar
Publ
ic 2-ye
ar0
20406080
100
Source: National Postsecondary Student Aid Survey, 2007-08
Percentage of Students Receiving Student Aid By
Sector
Financial aid to students is increasing but, despite significant increases in Pell Grant funding, the increase has primarily been in the form of Federal student loans.
Ten-Year Trend in Student Aid and Nonfederal Loans per FTE Used to Finance Postsecondary Education Expenses in Constant 2009 Dollars, 1999-2000 to 2009-10
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
GrantsLoans
Source: Trends in Student Aid, 2010, College Board
Trends in Student Aid
Instructional expenses have been relatively constant although the share of funds spent on instruction at for-profit institutions has been declining.
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
0%
5%
10%
15%
20%
25%
30%
35%
PublicPrivateProprietary
NOTE: Public institutions not included in 2008-09 due to changing in reporting.Source: IPEDS Data Center
Instructional Expenses as a Percentage of Total Expenses
Publi
c 4-ye
ar
Priva
te no
t-for-p
rofit 4
-year
Priva
te for
-profit
4-ye
ar
Pub
lic 2-y
ear
Priv
ate no
t-for-p
rofit 2
-year
Priv
ate fo
r-profi
t 2-ye
ar
Pub
lic les
s-tha
n-2-ye
ar
Priva
te no
t-for-p
rofit lt
-2-yea
r
Priva
te for
-profit
lt-2-y
ear
0
10
20
30
40
50
60
70
80
20092001
Any Degree or Certificate within Prior 6 Year PeriodBy Type of First Institution Attended
Source: Beginning Postsecondary Students
Public
4-year
Priv
ate not-
for-profi
t 4-ye
ar
Priv
ate fo
r-profi
t 4-ye
ar
Public
2-year
Priv
ate not-
for-profi
t 2-ye
ar
Priv
ate fo
r-profi
t 2-ye
ar
Public
less-t
han-2-ye
ar
Priv
ate fo
r-profi
t lt-2-ye
ar
0
10
20
30
40
50
60
70
80
BlackHispanicWhite
Attainment of Any Degree or Certificate within Prior 6 Years, 2009 by Type of First Institution Attended and by Race and Ethnicity
Source: Beginning Postsecondary Students
Budget Proposals
President’s 2020 Goal High Priority Performance Goals
Reform Struggling Schools Ensure Effective Teacher Corps Develop and Adopt College/Career-Ready
Standards Simplify Student Aid Evidence-based Policy—Invest in What
Works Use Data to Inform Decisions
12
Budget Proposals
FY 12 Budget Policies Maintain and Sustain Pell Grants
Two Pell Grants in One Year Eliminate Graduate Student In-school Interest
Subsidy Expanded and Modernized Perkins Loan
Program Student Loan Conversion
Presidential Teaching Fellows College Completion Agenda
“First In the World” (FIPSE) College Completion Incentive Grants (States)
13
Budget Proposals
Presidential Teaching Fellows Replace TEACH Grant Program States:
Implement Performance-based Licensure Enhance Teacher Prep Program Accountability Provide for $10,000 One-year Scholarships Three-year Commitment to High-need Subjects in
High-need Schools
14
Budget Proposals
First In the World Seek Innovative Solutions, Build Evidence
and Improve Higher Education Productivity, Efficiencies and Quality
FIPSE Grant Competition Investing in Innovation with a Strong Research
Component, Rigorous Evaluation, and Dissemination of Effective, Proven Results
Data Driven—Differentiated Funding Tiers Peer Review by Content/Research/Evaluation Specialists
15
Budget Proposals
College Completion Incentive Grants Encourage State- and Institutional-level
Reform in College Completion Performance-based Funding Reward States and IHEs for Reforms
Leading to Successful Outcomes: Improve College Preparation Facilitate Transfers Among Public IHEs Increase Goals for Graduate Rates & the
Number of Graduates
16
Budget Proposals
FY 12 Budget Policies Maintain and Sustain Pell GrantsTwo Pell Grants in One YearEliminate Graduate Student In-school
Interest Subsidy Expanded and Modernized Perkins Loan
Program Student Loan Conversion
Presidential Teaching Fellows College Completion Agenda “First In the World” (FIPSE) College Completion Incentive Grants (States)
17
Budget Proposals
Regulatory Activity
Program Integrity October 29, 2010: Effective July 1, 2011 June 13, 2011: Effective July 1, 2012
Foreign Schools November 1, 2010: Effective July 1, 2011
19
Regulatory Activity
Program Integrity Final Regulations Holding Programs Accountable for
Preparing Students for Gainful Employment:◦ Graduation Rate and Job Placement Disclosures◦ Approval of Additional Programs
Protecting consumers from misleading or overly aggressive recruiting practices, and clarifying state oversight responsibilities:
◦ Misrepresentation◦ Incentive Compensation◦ State Authorization
Program Integrity Final Regulations Ensuring that only eligible students receive
federal funds:◦ High School Diploma◦ College Credits◦ Ability To Benefit (ATB)◦ Satisfactory Academic Progress◦ Verification
Clarifying the courses that are eligible for federal aid, and the amount of aid that is appropriate:o Written Arrangemento Retaking Courseworko Determining When a Student Has Withdrawno Disbursing Federal Student Aid Fundo Credit Hour
Negotiated Rulemaking 2011-12 What we were thinking? “Naturally readable” Federal Student
Loan regulations Total and permanent disability student
loan discharge Hearings in Tacoma, Chicago & Charleston Public comment received and under review Announcement of one or more negotiating
committees with tentative agenda forthcoming
22
Regulatory Activity
Gainful Employment
An educational program is Title IV eligible only if the program: If offered by a public or non-profit institution, leads to a degree; or
If offered by any institution “leads to gainful employment in a recognized occupation”.These programs are referred to as a “Gainful Employment” or “GE” Programs.
24
HEA Requirement
Proprietary institutions All programs except: Programs leading to a baccalaureate
degree in liberal arts offered since January 2009 that has been regionally accredited since October 2007.
Preparatory non-certificate coursework necessary for enrollment in an eligible program.
25
HEA Requirement
Public institutions and not-for-profit institutions
All programs, except for: Programs that lead to a degree; Programs of at least two years in length
that are fully transferable to a bachelor’s degree program; and
Preparatory non-certificate coursework necessary for enrollment in an eligible program.
26
HEA Requirement
Teacher certification programs leading to a certificate awarded by the institution but not to teacher training programs that do not lead to a certificate.
ESL programs leading to a certificate or, if a proprietary institution, a degree.
27
GE Programs include -The Law - HEAHEA Requirement
Two sets of Final Rules published on October 29, 2010, with effective date of July 1, 2011- Program Integrity (included Gainful
Employment Reporting and Disclosures) Gainful Employment – New Programs
Final Rules on metrics to define gainful employment published on June 13, 2011, with effective date of July 1, 2012 or later.
28
The Regulations
For each GE Program, institution must provide prospective students with specific information (Effective July 1, 2011)
Institutional disclosures to provide information to help students choose among GE programs.
29
Disclosures
When available, institutions will be required to use a disclosure form provided by the Department. The form was not available by July 1, 2011.
Institutions must comply with these disclosure requirements independently until form is available.
Disclosure Form
By October 1, 2011 institutions must report information on students who were enrolled in a GE program for the 2006-07 through the 2010-11 award years.
Information includes: Student and program identifying
information; Loan amounts; Enrollment information; and Tuition and Fees (optional).
Gainful Employment Reporting
32
Adding a New GE Program Must notify ED at least 90 days before
the first day of class. If the first day of class is on or after July 1, 2011 and before October 1, 2011, notification was due by July 1, 2011
If the first day of class is on or after October 1, 2011, institutions must provide notification to the Department at least 90 days prior to the first day of class.
Notice of Intent to Offer an Educational Program must describe: How the institution determined the need for
the program? How the program was designed to meet
market needs? Any wage analysis conducted.
33
Notification Required
GAINFUL EMPLOYMENT METRICS
What do 90,000 comments look like?
Final Rule Final Rule published on June 13, 2011 –
Defines “gainful employment” to be when a substantial number of the GE Program’s students – Are repaying their Title IV loans –
Repayment Rate Have a reasonable debt burden –
Debt to Earnings Ratio. Informational rates will be issued in 2012 First official rates will be issued in 2013
35
Two Metrics Repayment Rate –
The percentage of loans that the GE Program’s former students are repaying (weighted for loan balance).
Debt to Earnings Ratio –For the GE Program’s completers, the average educational loan annual repayment amount as a proportion of the average borrowers’ income.
36
Failing programs do not lose eligibility immediately.
Standards help programs raise performance.
37
Program ImprovementFinal RuleImpacts
Meeting President Obama’s
2020 College Completion Goal
46
Percentage of Adults Age 25-34with Postsecondary Education
(Associate Degree of Higher in U.S. per 2008 Current Population Survey, U.S. Census Bureau)
Less than high school10%
High school grad-uate28%
Associate's degree17%
Some college12%
Bachelor's degree23%
Graduate degree10%
47
Education Requirements for Jobs, 2018
Georgetown University, Center on Education and the Workforce, 2010 p. 14 http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf
No High
Scho
ol
High Sc
hool
Some C
olleg
e
Associ
ate's D
egree
Bache
lor's D
egree
Master'
s Deg
ree
Doctora
l Deg
ree
Profes
siona
l Deg
ree$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$19,600 $26,700 $31,000 $32,700 $42,700
$51,100 $68,800 $74,400
$4,700 $7,100
$8,700 $9,300
$13,000
$16,200
$23,100 $25,600
Earnings & Tax Payments by Educa-tional Attainment
Taxes PaidAfter-Tax Earn-ing
Sources: The College Board, Education Pays, 2010
$100,000
$91,900
$67,300
$55,700
$42,000$39,700
$33,800
$24,300
Education for a Vibrant Democratic Society
Informed, effective participation in democratic life.
Capacity to solve the most pressing problems of our time.
Ability to work in diverse environments with diverse cultures, religions, ethnic backgrounds
Global perspectives
50
AccessClose the opportunity gap by improving affordability and increasing access to college and workforce training, especially for adult learners, low-income students, and under-represented minorities.
QualityFoster institutional quality with accountability and transparency.
CompletionIncrease degree and certificate completion and job placement, with special attention to fast growing first generation, under-represented and economically disadvantaged populations.
Strategic Objectives
Challenges to the Completion AgendaReductions in State funding
Minneso
ta
North D
akota
Alaska
Rhod
e Isla
nd
Hawaii
Arkan
sas
Maine
New Jer
sey
Nebras
ka
Mississ
ippi
Tennes
see
Conn
ecticu
t
Kansa
sUtah Ida
hoTex
asSou
th Caro
lina
Missour
i
Georgi
a
Wiscon
sin
Oregon
Michiga
n
Pennsy
lvania
Califo
rnia
Arizon
a
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
Approximate Percentage Change in FY 2012 State Oper-ating Support for Four-Year Public Universities (AASCU, 7-
2011)
Challenges - Affordability
Achieving the 2020College Completion Goal
Increase the U.S. College Degree Attainment Rate from 40 to 60%
10 million additional Americans ages 25-34 with an associate or baccalaureate degree (includes 8 million beyond projected growth)
3.7 million more high school graduates will become college graduates
6.3 million adult learners will become college graduates
Note: The attainment rate reflects the number of individuals in the population who have attained the degree or diploma. This differs from the graduation/completion rate, which measures the number of individuals within a cohort who graduate or complete their program within a certain amount of time.
Data Collection
Practices to Support College
Completion
State Outreach(SHEEOs, National
Governors Association)
Inter-Agency College
Completion Champions
Institution Outreach and
SupportPublic
Communications
Internal Program
Alignment
College Completion Task Force
President’s Goal: First in the World!
Initiatives Launched / Ongoing College Completion Tool Kit for States Data Dashboard for ED Website Request for Information (RFI)
Tool Kit Action Steps1. Set Goals; Develop an Action Plan2. Embrace Performance-Based Funding3. Align High School standards with College
Entrance Standards4. Make it Easier for Students to Transfer5. Use Data to Drive Decision Making6. Accelerate Learning and Reduce Costs7. Target Adults With Some College
Momentum Forward Data Driven/Research-Based Best Practices Forum of Top Researchers Tool Kit for Higher Education State and Regional Summits/Forums External Stakeholders Map of National Strategies Game Changer
Three Commandments Advance the Conversation Promote Innovation Celebrate Results
Questions
59