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Higher Education
and the Federal Government
Northwest Commission on Colleges and Universities
Terry HartleFebruary 18, 2010
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20103
“Yes We Can” Meets Legislative Reality
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Key Challenges for 2010
• Election coming/Public restless
• Senate is a mess
• Federal government is broke
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Higher Education Policy
• Stimulus package
• Implementation of new GI Bill
• President’s proposal
• FY 2011 Budget
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President’s Proposal
• First in world by 2020
• Eliminate bank-based Federal student loans
• Make all schools Direct Lending
• Pell Grant entitlement
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Student Financial Aid and Fiscal Responsibility Act (SAFRA)
• SAFRA passed 253 to 171 on September 17, 2009
• Senate action stalled by health care reform
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Big Issues in Student Loan Reform
• Money and power to the states
• Can Department of Education implement this on time?
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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
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Higher Education Policy Issues
• Federal control and oversight
• College prices
• Accreditation
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Federal Support* (2008 dollars)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
'65 '72 '76 '78 '80 '81 '86 '92 '93 '97 '98 '05 '06 '07 '08
Mil
lion
s
*Includes student aid, tax benefits, and R&D at colleges and universities
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Price of College
Public, 2-yr
Public, 4-yr
Private, 4-yr
Median Family Income
New Car
Prescription Drugs
Medical Care
Housing
-10%
0%
10%
20%
30%
40%
50%
99-00 '00-'01 '01-'02 '02-'03 '03-'04 '04-'05 '05-'06 '06-'07 '07-'08 '08-'09
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Accreditation
• What is credit hour?
• Is it a reliable measure that ensures quality?
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