An America Built to Last Martha Kanter, Under Secretary Illinois Board of Higher Education February 5, 2013

[T]he biggest domestic issue in the next four years will be how we respond to changes in technology, globalization and markets that have, in a very short space of time, made the decent-wage, middle-skilled job – the backbone of the middle class – increasingly obsolete. The only decent-wage jobs will be high- skilled ones. Thomas Friedman November 7,

President Obama’s 2020 Goal Goal 10 million more graduates from community colleges, four-year colleges and universities by 2020 (beyond 2+ million expected due to growth) Goal Every American completes one year or more of higher education or advanced training in his/her lifetime Result “Best educated, most competitive workforce in the world” 3

The “Cradle-to-Career” Agenda The Administration has outlined five core priorities for supporting P-20 education reform: 1.College Affordability and Quality 2.Raising Up the Teaching Profession 3.Aligning Job Training and Education Programs with Workforce Demands 4.Protecting Formula Programs for At-Risk Populations 5.Building on the Momentum for Innovation and Reform 4

Affordability and Quality in Postsecondary Education A three-part approach to postsecondary reform: Encourage greater innovation for lower-cost, higher- quality postsecondary providers Address funding needs and improve institution efficiency through modernization at the State level Encourage and reward better outcomes through federal investment 5

Federal Investments in Innovation Improving P-12 Outcomes: Race to the Top Investing in Innovation (i3) Race to the Top - Early Learning Challenge Race to the Top - District Advanced Research Projects Agency for Education (ARPA-ED) A proposed initiative to fund projects run by industry, institutions or other innovative organizations that represent the intersection of education, innovation, and infrastructure. 6

Federal Investments in Innovation Race to the Top – College Affordability and Completion A $1 billion competition that will drive systemic State reforms that lead to increased affordability, quality and productivity at colleges of all levels First in the World Innovation Fund A $55 million investment in individual colleges and nonprofit organizations designed to develop, validate or scale up innovative and effective strategies for boosting productivity and enhancing quality on campus 7

Other Key Programs: GEAR UP and TRIO programs provide intensive services to K-12 and college students School Turnaround Grants support innovative and rigorous interventions in low-performing schools Promise Neighborhoods invest in comprehensive community reforms 21 st Century Community College Learning Centers offer enriching academic activities Encourage innovation and IDEA Part B Grants ensure support for individuals with disabilities through 8 Federal Investments in Innovation

Blueprint for an America Built to Last 9 “Higher education can’t be a luxury -- it is an economic imperative that every family in America should be able to afford.” President Barack Obama State of the Union Address January 24, 2012

Federal Investments in Innovation Direct Savings to Help Students Conversion to Direct Loans saved $68 billion dollars over 11 years, of which $40 billion has gone directly to students Increasing Pell Grants President Obama has raised the maximum Pell Grant award to $5,635 for the award year Total Pell Grant recipients have increased by 50% since 2008 – from 6 million students in 2008 to more than 9 million today Easing Access to Federal Aid Simplification of the Free Application for Federal Student Aid (FAFSA) has helped fuel a 30% increase in applications since 2009 More than 21 million students will submit a FAFSA this year 10

Federal Investments in Innovation Help Students Manage Debt Income-Based Repayment will allow students to cap repayment of loans at 10% of monthly income Public Service Loan Forgiveness supports students pursuing public service careers Pay as You Earn greatly expands number of students who can cap their payments Expand Education Tax Credits The American Opportunity Tax Credit (AOTC) provides 9.4 million students and families with up to $10,000 for four years of college Trade Adjustment Assistance Community College Career Training Initiative (TAACCCT) $2 billion partnership between ED and Dept. of Labor to create programs that prepare students for the 21 st century global economy 11

Improving Transparency College Affordability and Transparency Center: Financial Aid Shopping Sheet (adopted by 22 schools in Illinois!) Interactive Loan Counseling Tool College Scorecard New Federal Student Aid Website: 12

The “Cradle-to-Career” Agenda Five core areas for work in 2013: 1.College Affordability and Quality 2.Raising Up the Teaching Profession 3.Aligning Job Training and Education Programs with Workforce Demands 4.Protecting Formula Programs for At-Risk Populations 5.Building on the Momentum for Innovation and Reform 13

A vibrant and prosperous America – An America Built to Last - depends on its educational system – in fact, the future of our democracy depends on the positive contributions of critical thinkers and engaged citizens. 14