ACSBlog: The Blog of the American Constitution Society

by John Weaver, Editor at Large

Late in March at a summit of business and higher education dubbed “A Test of Leadership,” Secretary of Education Margaret Spellings announced a series of programs that are designed to improve “access and accountability” in higher education. Ideally, the secretary hopes these measures will make attending college more affordable and navigating college funding options easier for families. In prepared remarks, Sec. Spellings spoke of the problems facing students and families trying to pay for college:

Consider that in 1975, the Pell grant covered 84% of costs – today only 36%. In addition, state and institutional non-need based aid has far surpassed aid to more needy students. A recent Ed Trust report that studied 50 state flagship institutions found over the past decade grants to families making more than $100,000 increased by 406%, while aid to families making less than $20,000 actually decreased by 13%... The role of government in education has always been to help out students most in need, and, frankly, we’ve all let them down.

Included in these programs are increases in Pell grants, a redesigned FAFSA internet tool that would make applying for federal financial aid easier, and pilot programs in three states that attempt to make thorough comparison shopping among schools more possible for students. 

The idea of a redesigned FAFSA process is particularly appealing to many advocates. One element of it, named the FAFSA4caster, allows all high school students – not just those who are currently applying for college – and their families to enter their financial information into the website and receive an estimate of the federal aid they would be eligible for if they decided to go to college. Much of the appeal of an easier FAFSA process is that the current 8-page, 101-question form is seen as a deterrent to many Americans. The America Council on Education estimated that 1.5 million aid-eligible students did not fill out the FAFSA form last year. It is hoped that an easier FAFSA process would increase the number of Americans from low-income backgrounds who attend college and earn a bachelor’s degree.

These programs, in large part, are based on the findings from the Commission on the Future of Higher Education, also known as the Spellings Commission, which published a report last fall on the shortcomings of higher education and how to improve those areas. Reactions to the report varied, with some people commending it for its emphasis on easing the burden on families sending kids to college and others criticizing it for its vagueness and cost cutting methods, including an emphasis on community colleges and online classes over school with full-time faculty and research facilities. The recent proposals coming from Sec. Spellings and the Department of Education have renewed some of that discussion. The Modern Language Association of America criticizes the Spellings Commission for focusing on “the scientific and technical fields” over liberal arts. Panelists at a recent conference on challenges and opportunities in higher education held by the American Enterprise Institute had mixed reactions to the report and the new proposals. Peter Wood at the National Review was critical of the summit’s proposals, not because they ignored key areas of higher education, but because they suggested everyone should attend higher education: “President Clinton proposed [similar ideas] in his 1997 State of the Union address – the one in which he called for a national entitlement to two years of college for every American and a tax deduction for college tuition… Nevermind that a college degree is an expensive waste of time for a great many students.”

Others strongly dispute Wood’s ideas. Representative George Miller of the House Education and Labor Committee believes that people “can no longer retain their position in the middle class without an education that goes beyond high school. People need two-year, four-year or graduate degrees.” Rep. Miller is optimistic about current proposals, but is worried that “another 40 percent increase” in the next five years will undo whatever help is provided today. He insists that efforts are being made to help families and students better afford college. Congress recently cut Stafford loan interest rates in half, from 6.8 percent to 3.4 percent, “which means significant savings for students over the life of those loans. The estimate is that they’ll save an average of $4,400.” At the summit, Sec. Spellings went a step further, discussing the possibility of increasing Pell Grants – direct aid to low income students – to $5,400 over the next five years. The administration hopes this will increase the amount of average in-state tuition covered by the grants to 70%.