Multi-National Higher Education Forum March 17, 2006 David Longanecker Executive Director, Western Interstate Commission for Higher Education (WICHE) www.wiche.edu Securing Public Interest in Higher Education: Equity & Access: Grants and Loans – the U.S. Perspective

Equity & Access the American Way States responsible for the supply side – assuring space in a place Federal government for the demand side – assuring affordability for all Sort of – good enough as a starting point for discussion

Egalitarianism in American Higher Education Not our whole history Began as elitist Evolved in late 19th century to meritocratic (despite our rhetoric) Accidentally became egalitarian with GI Bill Intentionally adopted egalitarianism with the Great Society movement of 1960s States expanded supply Feds created student aid

Egalitarianism in American Higher Education -- The Federal Role The Time Line: 1964: The Higher Education Act 1972: Student aid becomes voucherized 1978: MISSA expands student loans 1982: Loans reigned in 1992: Loans expanded again 1997: Tax credit & deductions created Late 1990s: Grants pumped up This Century: Grants stagnated

Egalitarianism in American Higher Education – The Federal Role A Brief Summary Began to help the poor Expanded to help the middle-income Hasn’t changed much in last quarter century Not because it works But because it is politically viable Assuages guilt Helps voting middle class Won’t change much for same reason

Egalitarianism in American Higher Education -- The States Supply Radical expansion in 60s and 70s Invention of the Community College Struggling with expansion today Bricks and Mortar Technology Mediated Instruction

Egalitarianism in American Higher Education -- The States Demand Tuition The Low Tuition tradition The Change Necessity Philosophy Business Practices Financial Aid Need-based: Traditional and not universal Merit: Best & Brightest—Nevada Millenium Encouraging achievement—Indiana Bright Futures Changing Ethic—Georgia Hope

Egalitarianism in American Higher Education -- The Institutions Demand Traditionally need-based aid, evolving originally within private sector Tradition held until about 1990 Now a blend of need-based and “enrollment management” Recent benevolence of the “have” institutions Carolina Covenant, UVA, MIT Pell Match, Harvard and Princeton filling the Gap. A drop in the bucket from those with a bucket

Egalitarianism in American Higher Education -- The Institutions Supply side – a mixed bag Expanded through Community Colleges Economies achieved through unfunded growth Using new technologies to expand Many, however, have “managed” enrollments – buy the best, forget the rest. For profits stepping in to fill the void

Egalitarianism in American Higher Education -- The Investiment Demand Side $143 Billion annually -- 17 million students For What? (2004 $; 10 year real increase) Grants & the like: $57 Billion (86%) Loans: $76 Billion (130%) Subsidized work-study: $1 Billion (24%) Tax benefits: $8 Billion From Whom Federal Government: $90 Billion States: $6 Billion Institutions: $24 Billion Others: $21 Billion Supply Side--$70 Billion from States and Local Governments

Egalitarianism in American Higher Education -- The Current Dilemma Great society ethic has waned Middle-income self-interest rules Crisis, but no sense of it Net price is the real issue but seldom the story