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

2. Federal Government and Higher Education
State and Federal

3. 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

4. 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

5. 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

6. …Burden is Shifting Percentage of student aid by source for and in current dollars (in billions) 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

8. 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

9. 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?

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

11. 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?

12. $ Disbursed to Students
Programs, Students, and Dollars
Award Year
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

13. 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

14. 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

15. 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

16. 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

17. 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.)

18. 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

19. 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

20. 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

21. 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?

22. 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

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

24. Reference
Larry Warder, Higher Education Cost and Financial Aid: Unraveling the Pieces. Retrieved from LRY10J:www2.ed.gov/about/offices/list/ope/fsapellgra ntwebinar2012.doc
Jeff Baker. (2012, May 16). Federal Student Aid Upcoming Statutory Changes. Retrieved from sionHigherEdCosts.ppt

25. Reference
David Longanecker. (2006, October 16)What State Policy Makers Should Know About Federal Higher Education Policy. Retrieved from ons