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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Egalitarianism in American Higher Education -- The Investiment
Demand Side
$143 Billion annually 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

11. 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