1. Higher Education and the Federal Government Northwest Commission on Colleges and Universities Terry Hartle February 18, 2010

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3. 2010 3 “Yes We Can” Meets Legislative Reality

4. Key Challenges for 2010 Election coming/Public restless Senate is a mess Federal government is broke 4

5. Higher Education Policy Stimulus package Implementation of new GI Bill President’s proposal FY 2011 Budget 5

6. President’s Proposal First in world by 2020 Eliminate bank-based Federal student loans Make all schools Direct Lending Pell Grant entitlement 6

7. Student Financial Aid and Fiscal Responsibility Act (SAFRA) SAFRA passed 253 to 171 on September 17, 2009 Senate action stalled by health care reform 7

8. Big Issues in Student Loan Reform Money and power to the states Can Department of Education implement this on time? 8

9. Federal Aid Policy: What is next? Soon: Congress acts on President’s 2010 Proposal July 1: Implementation of Direct Lending (?) July 1: HEOA reauthorization regulations New Rulemaking process underway 9

10. Higher Education Policy Issues Federal control and oversight College prices Accreditation 10

11. Federal Support* (2008 dollars) Millions *Includes student aid, tax benefits, and R&D at colleges and universities 11

12. Price of College 12

13. Accreditation What is credit hour? Is it a reliable measure that ensures quality? 13