The External Factors of Higher Education Taylor Ainslie Randy Lee Anacany Torres Suki Wang

Federal Government and Higher Education State and Federal

Evolving Role Morrill Land Grant of 1862 GI Bill of Rights of 1944 Higher Education Act of 1965 American Reinvestment and Recovery Act (Economic Stimulus Bill): Obama; 2009

Higher Education Act student financial aid services to help students complete high school and enter and succeed in postsecondary education aid to institutions  aid to improve K-12 teacher training at postsecondary institutions Title IV: Pell Grant-needed students Stafford Student Loan Program- middle class Campus-based program-Federal work-study program, Perkins loan program

Expansion & Changing By the end of 1970 federal student aid program expanded rapidly By the early 1980s economic and political changing- hard to pursue the original goal More students entitled to financial aid, but less $/student Rise in loan programs, ex: Stafford Loans

…Burden is Shifting Percentage of student aid by source for 1992-93 and 2005-06 in current dollars (in billions) 1992-1993 2005-2006 4% 9% 16% 6% 41% 5% 10% 51% 5% 19% 20% 7% 7% Pell Grants Other Federal Programs State Grants Private & Employer Grants Federal Loans Education Tax Benefits Institutional Grants

Change over time From grant-centered system to loan-centered system Shift the source from the neediest to less needy students-Taxpayer Relief Act Cover more institution and access to H.E. More accountability-based

Discussion Question Which do you think is the more beneficial form of financial aid, more investment in grants and supporting the neediest or loans and the encompassment of more income-levels? Why or why not?

Discussion Question What are your thoughts on Obama emphasizing graduation rates over access?

Activity Form groups of 3-4 people You are now the federal government of the United States and have $100 billion to spend on higher education. How will you allocate these resources to the following: direct loans, FFEL, pell grants, (TEACH, ACG, SMART), and campus-based aid?

$ Disbursed to Students Programs, Students, and Dollars   Award Year 2010-2011 Title IV Aid Program # of Students $ Disbursed to Students Direct Loans 19.2 million $104.2 billion FFEL N/A Pell Grants 9.6 million $35.6 billion Teach, ACG, SMART 0.9 million $1.1 billion Campus-Based Aid 2.8 million $3.1 billion TOTAL $143.9 billion FFEL: Federal Family Education Loan Program ACG: Academic Competitiveness Grant SMART: Science and Mathematics Access to Retain Talent Program 12

FY 2013 Budget $5,635 maximum Pell Grant award for 2013-2014 Maintain the subsidized loan interest rate for undergraduate students at 3.4 percent for undergraduates until July 1, 2013 Limit the duration of the Stafford Loan in-school interest subsidy to 150 percent of the normal time required to complete the borrowers’ educational program. 13

FY 2013 Budget Expand and improve the Perkins Loan program to provide $8.5 billion in loans annually Provide $150 million in new funds for the Work-Study Program Reform and expand Federal allocations in the campus-based programs 14

The Role of the State History States had a minimal or limited role until higher education began to expand in the 1950s and 60s The establishment of land-grant universities also expanded the role of the state However, it is accepted that higher education institutions should have autonomy

The Role of the State States fund universities mainly through direct subsidies Traditionally, states were responsible for the allocation of funds As time went on, more people demanded accountability from higher education institutions and states took on the role of overseer

The Role of the State There is an increasing interdependence between the state and federal governments in regards to higher education This is mostly due to the nature of fiscal aid: For an institution to receive federal aid, the state must “authorize” or otherwise approve it States must follow the federal policies regarding funding (for research, financial aid, etc.)

State Structure Governing boards Primary function is to maintain the balance between accountability and autonomy Public boards govern multiple institutions Consolidated: all types of institutions Segmental: by type Campus-level: autonomous Private boards govern a single institution

State Structure Coordinating boards Focus on state and whole system needs Do not have a governing status Primary function is reviewing and making recommendations about budget policies and actions

Main Themes Regarding States Debate/struggle over how much autonomy to grant higher education institutions Emphasis on accountability Increasing interconnectedness of the state and federal governments Many varying ways to govern and coordinate postsecondary institutions Ever-changing view of finance for colleges: heavily depends on the current economy

Discussion Question If you were a state government and there is a recession, would you reallocate funding to/from colleges? If so, how and why?

CH. 8 Postsecondary institutions as being assisted with funding, institutional autonomy and academic freedom by: Private Foundations Institutionally Based Membership Organizations Voluntary Accrediting Organization Voluntary Consortia Regional Compacts

Discussion Question Which of these five external contingencies do you find to be the most effective and based on what characteristics?

Reference Larry Warder, Higher Education Cost and Financial Aid: Unraveling the Pieces. Retrieved from https://docs.google.com/viewer?a=v&q=cache:cLyPvH LRY10J:www2.ed.gov/about/offices/list/ope/fsapellgra ntwebinar2012.doc Jeff Baker. (2012, May 16). Federal Student Aid Upcoming Statutory Changes. Retrieved from http://ifap.ed.gov/presentations/attachments/Genses sionHigherEdCosts.ppt

Reference David Longanecker. (2006, October 16)What State Policy Makers Should Know About Federal Higher Education Policy. Retrieved from http://www.wiche.edu/about/president/presentati ons