An America Built to LastMartha Kanter, Under SecretaryIllinois Board of Higher EducationFebruary 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 FriedmanNovember 7, 2012

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President Obama’s 2020 Goal

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The “Cradle-to-Career” AgendaThe Administration has outlined five core priorities for supporting P-20 education reform:

1. College Affordability and Quality2. Raising Up the Teaching Profession3. Aligning Job Training and Education Programs with

Workforce Demands4. Protecting Formula Programs for At-Risk

Populations5. 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

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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.

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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

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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• 21st Century Community College Learning Centers offer

enriching academic activities Encourage innovation and• IDEA Part B Grants ensure support for individuals with

disabilities through

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Federal Investments in Innovation

Blueprint for an America Built to Last

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“Higher education can’t be a luxury -- it is an economic imperative that every family in America should be able to afford.”

President Barack ObamaState of the Union AddressJanuary 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 2013-14 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

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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 21st century global economy11

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: www.studentaid.gov

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The “Cradle-to-Career” AgendaFive core areas for work in 2013:

1. College Affordability and Quality2. Raising Up the Teaching Profession3. Aligning Job Training and Education Programs with

Workforce Demands4. Protecting Formula Programs for At-Risk

Populations5. Building on the Momentum for Innovation and

Reform

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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.

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