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Current Issues in Higher Education Council on Undergraduate Research Terry Hartle February 23, 2012
Current Issues in Higher Education
Council on Undergraduate Research
Terry HartleFebruary 23, 2012
Federal Policy/Higher Education in the Last Decade
• Enrollment up
• Federal student aid increasing
• Price of college up
• Student debt up
• Loan defaults starting to increase
• Graduation rates flat
• Government regulation way up
Enrollment
Public, 2-yr, 49%
Public, 4-yr24%
Private, 4-yr, 31%
0%
10%
20%
30%
40%
50%
99-00 '01-'02 '03-'04 '05-'06 '07-'08 '09-'10
3
Total Federal Loan and Pell Grant Dollars
$138.8
$52.4
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
99-00 '01-'02 '03-'04 '05-'06 '07-'08 '09-'10
Bil
lio
ns
4
Price of College
Public, 2-yr
Public, 4-yr
Private, 4-yr
For-profit
Health insurance
Median Income
New Car
Prescription Drugs
Medical Care
Housing-10%
10%
30%
50%
70%
90%
99-00 '01-'02 '03-'04 '05-'06 '07-'08 '09-'10
5
Cumulative Debt
$22,600
Average Debt Per Borrower (Private),
$28,100
$19,800
Average Debt Per Borrower (Public),
$22,000
$15,000
$20,000
$25,000
$30,000
99-00 '01-'02 '03-'04 '05-'06 '07-'08 '09-'10
6
11.9%
8.8%
5.2%4.6% 4.5%
3.7%
15.0%
9.3%
8.8%
5.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Co
ho
rt D
efa
ult
Ra
te
Public 2-yr Public 4-yr Private 4-yr For-Profit Overall
Default Rates Rising
7
Graduation Rates
52%Public, 4-yr, 53%
63%Private, 4-yr, 64%
50%
70%
90%
'00-'01 '01-'02 '02-'03 '03-'04 '04-'05 '05-'06 '06-'07 '07-'08
8
Government Regulation Way Up
• 150 + new regulations in 2008 reauthorization
• Obama Administration
• HR 2117
FY 2013 Budget Proposals for Postsecondary Education
• Community College/Business partnerships to train 2 million skilled workers
• Race to the Top
• First in the World fund
• New formula for campus-based aid
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FY 2013 Budget Proposals for Postsecondary Education
• Better data for families
• Student loan interest rate
• Make AOTC permanent
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Looming Pell Grant Issue
FY 2014 Shortfall
– Estimated shortfall of $8 billion
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