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Implications of Changes in the Financing of Public Higher Education
Pages 357-376

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From page 357... ... Extremely tight budgets in some states have reduced the relative appropriations to education in those states even as more students are looking to college as a means of personal advancement. Though federal funding for student aid is up, more of this funding is going toward loans and tax benefits as opposed to student grants. Read the entire page →
From page 358... ... • Offer matching funds to states based on their funding of meanstested grant aid. THE ROLE OF HIGHER EDUCATION IN THE KNOWLEDGE ECONOMY Higher education has been central to the strength of the US economy over the last half-century. Read the entire page →
From page 359... ... "Policy Implications of Changing Funding for Public Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. STRESSES IN THE FINANCIAL STRUCTURE OF PUBLIC HIGHER EDUCATION Public higher education is under severe financial pressures. Read the entire page →
From page 360... ... "Policy Implications of Changing Funding for Public Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Enrollment by type of institution 7,000,000 Research Liberal Arts Two-year Doctorate-granting 6,000,000 Comprehensive Other Number of Students Enrolled 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 65 70 75 80 85 90 95 00 19 19 19 19 19 19 19 20 FIGURE PHE-2B Enrollment by type of institution, 1965-2000. Read the entire page →
From page 361... ... Kane. "The Role of Federal Government in Financing Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, March 21, 2005. Read the entire page →
From page 362... ... Kane. "The Role of Federal Government in Financing Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, March 21, 2005. Read the entire page →
From page 363... ... Kane. "The Role of Federal Government in Financing Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, March 21, 2005. Read the entire page →
From page 364... ... "Policy Implications of Changing Funding for Public Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Read the entire page →
From page 365... ... Kane. "The Role of Federal Government in Financing Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, March 21, 2005. Read the entire page →
From page 366... ... In addition, while there have been real increases in per student funding under the Pell grant program, they have not been adequate to offset larger increases in college prices. The size of the average grant has increased in real terms in recent years, but average tuition, fees, and room and board at public 4-year colleges and universities increased faster. Read the entire page →
From page 367... ... Kane. "The Role of Federal Government in Financing Higher Education." Presentation to National Academies' Board on Higher Education and Workforce, March 21, 2005. Read the entire page →
From page 368... ... Baum. "Changes in Funding for Public Higher Education: College Prices and Student Aid." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Read the entire page →
From page 369... ... Baum. "Changes in Funding for Public Higher Education: College Prices and Student Aid." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Read the entire page →
From page 370... ... Reductions in funding for public education combined with constraints on tuition increases appear to be causing deterioration in the quality of public colleges and universities compared with private institutions.9 Private universities benefit from larger endowments, have constrained enrollment growth to control costs, and have steadily increased tuition to offset inflation and provide new resources for qualitative improvement. Public institutions are less able to use these measures for fiscal control and as a result are falling behind private colleges and universities, in endowments, faculty salaries, student:faculty ratios, student services, and facilities (see Figure PHE-15) Read the entire page →
From page 371... ... 742 760 Leveraging Educational Assistance Partnership Grant (LEAP) 91 64 Veterans 1,518 2,365 Military 515 981 Other Grants 245 353 Subtotal 10,308 17,184 Federal Work Study 982 1,218 Loans Perkins Loans 1,169 1,201 Subsidized Stafford 18,018 25,291 Unsubsidized Stafford 2,029 23,105 Parent Loan for Undergraduate Students (PLUS) Read the entire page →
From page 372... ... Baum. "Changes in Funding for Public Higher Education: College Prices and Student Aid." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Read the entire page →
From page 373... ... Baum. "Changes in Funding for Public Higher Education: College Prices and Student Aid." Presentation to National Academies' Board on Higher Education and Workforce, April 2005. Read the entire page →
From page 374... ... ENSURING ADEQUATE FUNDING FOR PUBLIC HIGHER EDUCATION The federal government has a number of options that could help public institutions receive revenues that reflect the true costs of higher education: Read the entire page →
From page 375... ... • Design or expand federal matching programs that encourage increased state appropriations for higher education. For example, to encourage states to expand means-tested grant aid, the federal government could offer matching funds to states based on their funding of such programs. Read the entire page →
From page 376... ... IMPROVING ACCESS TO HIGHER EDUCATION In addition, the federal government can help the states improve access to higher education for all Americans through several actions: • Focus national resources on improving the purchasing power of Pell awards.13 • Increase flexibility for states to buy more subsidized loan eligibility from the federal government.14 • Expand and restructure the LEAP program to allow private-sector matches from such organizations as Scholarship America and community foundations.15 • Institute a voucher program that would give more money to students from low-income homes.16 • Mandate that both public and private institutions use the average "net price" of attendance instead of the stated "sticker price" in all federal grant and loan programs to determine who qualifies for student-aid awards and how much they should be awarded. Using sticker prices as the official institutional "cost of attendance" misrepresents the actual average cost of attendance in most federal and state student-aid programs.17 • Consider eliminating the Free Application for Federal Student Aid. Read the entire page →

From page 357...

... Extremely tight budgets in some states have reduced the relative appropriations to education in those states even as more students are looking to college as a means of personal advancement. Though federal funding for student aid is up, more of this funding is going toward loans and tax benefits as opposed to student grants.

Implications of Changes in the Financing of Public Higher Education Pages 357-376

Implications of Changes in the Financing of Public Higher Education
Pages 357-376