1. How Did We Get in this Mess? And Can we Get Out of it? Sarah Flanagan 2008 AAPICU Annual Conference

2. The Mess College Cost & Pricing Accreditation Student Learning Outcomes Textbooks Emergency Response Credit Crisis Meningitis Distance Ed Post-Graduate Outcomes Teacher Education Drug & Alcohol St. Loan Sunshine Fire Safety Missing Persons Peer to Peer Endowments

3. A Quick Perspective GI Bill and the War on Poverty Student Centered Aid –Portability - Access and Choice Accreditation as a Barrier to Federal Control

4. 1992– A Watershed Proprietary Scandals Middle State Political Correctness Last of the Old Lions

5. “Moving to the Front Burner” 1993-2000 Bill Clinton and Newt Gingrich: More in Common Than you Think The Student Aid Alliance Dec 1995 Government Shut-down Taxpayer Relief Act of 1997 2000 Elections

6. Direct Lending 1993 Connected to National Service Debate (and student loan scandals) Done through the Budget Act Sets Off Direct Lending v. FFELP Wars Partisanship Enters HEA politics

7. Clinton and Gingrich Populist message by Brilliant Strategists So Goes Campaigns, So Goes Policy –Symbolic Politics as Policy –The Role of Polling – 30- Second Sound Bites –Policy by Anecdote Generational Turnover in Congress

8. Student Aid Alliance Response to Contract with America, but directed at both Gingrich and Clinton Campaign tactics applied to Issue Politics –Polling –Focus groups –Earned Media –Grassroots and Grasstops –Unified Message from DC

9. December 1995 Government Shut-down Contract with America dead Education central issue Education “saves” Clinton for second time

10. Taxpayer Relief Act of 1997 Combines Education and Tax Relief— a traditionally democratic issue with a republican method Benefits Middle Class Adds “Affordability” to “Access” Pell Increase Rides the Wave but Does not Drive it

11. 2000 Elections Beginning of Fight for the Independent Voters Education #1 Issue for Independents Similar Education Policy

12. 1998 HEA Reauthorization—End of an Era Last Education bill done “on time” Last of the Bi-partisan Leadership from the “Good Old Days” with policy first Benefited from the lack of interest in HEA (a last gasp on the “back burner”)

13. What is the New Era? Education as a Front Burner Issue NCLB Rise in Independent Voters Close Elections Prop Schools Rise from the Ashes New Interest Groups Budget Deficits Age of Accountability International Competitiveness Exploding College Prices

14. No Child Left Behind-- 2001 Federal “Fix-It”, not Partners Equalization and Equity of Resources replaced with Student Assessment The Birth of the Data God— ”Scientific Evidence” Bi-partisan with Groups in tow New players

15. Rise in Independent Voters In the 27 states that register states by party, the percentage of self-declared independents grew from 8 percent in 1987 to 24 percent in 2004 About 40 percent of Americans call themselves independent 30 percent are considered “persuadable” Independents broke 2-1 for the Dems in the 2006 election

16. Close Elections Increases partisanship, because so much is at stake. Need to boldly stake out differences, while competing for the same voters, using the same tools. Even in recent elections that have been decisive for one party, the total vote differences needed to tip the balance of power has been remarkably narrow. Increased Need to Raise Campaign Funds

17. Old Interest Groups

18. New Interest Groups Education Trust New America Foundation Center for American Progress Data Quality Campaign The Institute for College Access and Success, Inc. Achieve Education Sector Campaign for America’s Future

19. Budget Deficits More bi-partisan concern as Dems have increased their credibility The deficit is getting worse The federal debt is larger The pie is baked

20. Age Of Accountability Business knows best (remember TQM?) Learning can be measured and numbers can tell us everything Data leads, policy follows Einstein, “Because something can be counted, doesn’t mean it counts”

21. International Competitiveness They believe us The future success for individuals and the nation are dependent on access to higher ed We are a public good, with lots of governmental support

22. Explosion of College Prices Growth in Tuition far outpaces growth in median family income FY 2008 Pell Grant program will cost $18 billion for a $4,731 maximum grant-- more than 2 of the 12 congressional subcommittees entire allocations (five years Pell program costs were $10 b) Last year’s average increase in tuition and fees at private colleges was $1,404

23. Household Income vs. Tuition, Fee, Room, and Board Charges (2006 Constant Dollars)

24. Colleges Losing the “White Hat” Cost Scandals –AAU –Student Loans –Study Abroad Rise of Prop Schools

25. Increasing Resentment of Colleges Most Americans (and elected officials) understand the economic need for postsecondary education Lots of federal support makes no dent Congress (like the American people) feels it can’t keep up Is it worth it?

26. Leads to New Question: What are we getting for our Money?? Asked by parents and by elected officials Spellings answers with language she knows: NCLB; accountability, data, student learning outcomes Questions regarding “appropriate federal role” do not resonate

27. HEA Reauthorization – Final Stages 1998 Last Reauthorization 2003-04 Scheduled Reauthorization Feb 2006: Bill Split in two, key student aid portions become law March 2006: Rest of HEA passes House and Dies July 2007: Senate approves 2-part HEA September 2007: Student aid portions become law February 2008: House approves Rest of HEA March 31, 2008: Targeted Conference Completion

28. Effects on Campus What will affect your campus? When will these impacts be felt? What are our most significant victories and losses?

29. Dominant Issues for Congress Turning Student Loan Cuts into Pell Grant Dollars College Pricing (including textbooks) Student Loan Sunshine Issues de jour (V-TECH, illegal file sharing, fire safety, missing students) Teacher Education Accountability Student Debt

30. Dominant Issues for NAICU College Pricing Accreditation Student Learning Outcomes Student Loan Sunshine Protecting Campus-based aid & LEAP Preserving Pell (against front-loading, other ideas) Student loan cuts— opportunities and risks Increased Loan Limits Student repayment options Transfer of Credit Teacher Education Mandates Articulation Agreements Last Dollar Reporting Requirements (file sharing, textbooks, emergency response, U- CAN, missing persons, fire safety, distance ed, drug & alcohol etc.) Integrity

31. Cost: Senate “Watch Lists” of state and national price increases ranking institutions above “HEPI” State and national lists ranking schools by change in tuition and fees over previous 2 years Development of net price calculators by institutions within 3 years Inclusion of net price information by income quartile in admissions materials

32. House Cost Provisions Top 5 % of institutions by sector (and nationally) with largest percentage increase in tuition over 3 years must submit report to Secretary and establish quality efficiency task forces with annual benchmarks Lists of top and bottom 5 % of schools by price and sector Sec of Ed develops net price calculator that all schools must adopt and place on web site PEPI

33. House: Higher Ed Pricing Summary Page Undergrad Tuition and Fees For three preceding years –Net price by income quintile ($35K increments –Average % and $ change in tuition and fees –Average % change in per-student instructional spending

34. And then Even More All U-Can Information Graduation rate information by income quintile through IPEDS Additional reports to Sec. by any college whose net tuition rises above a new PEPI including reports on efforts to restrict future increases

35. Transfer of Credit BEGAN Prop Schools: Automatic Transfer among all Title IV schools CHEA Principle: No Discrimination based on Regional or National Accreditation LIKELY END Publish Transfer of Credit Policy Publish Articulation Agreements

36. Student Learning Outcomes Accreditation as a Regulatory Tool Emphasis on Fixed Measures and Comparability Inevitable Drift Toward Formal Assessment Instruments Closely Related to Price Concerns– What are we paying for?

37. Likely End Game: Accreditation and Student Learning Outcomes NACIQI reconfigured Limitations on Secretarial Authority Clear protections for Schools and Accreditors to prevent one from contolling the other Requires “respect” for religious missions

38. Student Loan Sunshine Uniform disclosures and certification to all students who borrow federal or private loans Applies to non-Title IV colleges Struck: Restrictions on Bankers serving on college boards and vice versa Struck: Restrictions on Charitable Contributions

39. Preservation of Programs Pell Grant “front-loading” defeated All Campus-based programs and LEAP reauthorized Campus-based aid formula preserved

40. Enhancements to Student Aid Positive Increases in student loan limits (undergraduate and graduate) New repayment options for students with high debt to income; public service and non-profit loan forgiveness; lower interest rates and elimination of O fees $11 billion for Pell Grants (yielding an increase of $490 per student for AY 2008-09 over the appropriated max) Negative Lenders are cutting borrower benefits Uncertainty of PLUS loans Effect of Cuts on Capital Markets unclear

41. Last Dollar (mainly a House problem) GEAR UP & 3 new grant programs Designed to ensure no college “cuts” as student’s institutional aid package because of additional federal grant dollars Brings in federal oversight and rules for institutional grant aid Final: Language most likely struck

42. Teacher Education Gains Removed initial Value-Added assessment models of teacher ed programs Eliminated Rankings of Institutions in State Report Card Prohibits a national system of teacher certification Losses Every college with a teacher ed program must set annual quantifiable goals in accordance with goals set by the Secretary of Education (senate) or State (house) in such areas as: subject shortage areas (i.e. math, science, l.e.p) – special populations (special ed, rural and urban, etc.)

43. Articulation Agreements (House) Secretary to carry out program with the states to “develop, enhance and implement comprehensive articulation agreements among institutions in a State” Encourages such things as “common course numbering, general education core curriculum” End: Private Colleges Removed from Mandate

44. Integrity 50 Percent Rule Incentive Compensation 90/10 Default Rate Window End Game: Props Likely Gain Ground

45. Reporting Requirements File Sharing Textbooks Emergency Response U-CAN/ Navigator Missing Persons Fire Safety Cost Endowments Distance Ed Post-Graduate Outcomes (Senate Grad Rates by Student Aid Recipient Drug & Alcohol Student Loan Sunshine Meningitis

46. Textbooks Publishers must provide pricing information to those who select books on campus Requires “unbundling” Requires ISBN, retail price to be published with class schedules (to maximum extent practicable) Upon request, colleges must make info avail available to outside bookstores Language protecting academic freedom and institutional autonomy

47. P2P File Sharing Requires disclosures to students on school policies for illegal downloading that are identical in both House and Senate, with bi-partisan support and Hollywood push Colleges must develop a plan for alternatives to illegal downloading and to explore technology-based deterrents (House) Authorizes grant program to develop pilot programs

48. Campus Emergencies Require campus policies on emergency response including 30-minute notification rule Procedures must be publicized and tested annually

49. Overall Assessment We Have Won Many Clear Victories –Most blatant Price Controls Defeated –Student Aid Programs Maintained and Expanded –Accreditation & Student Learning Outcomes –Transfer of Credit –Ability to Package our Own Aid –Charitable Contributions from Banks

50. Greatest Negative Effects on Campus Massive New Reporting Requirements New Federal Pressure on Tuition Increases

51. And on the Eastern Front— Finance Committee Also interested in College Cost Endowment pay-outs Increased Scrutiny of non-Profits New 990s Expired provisions: –IRA Rollover –Tuition deduction

52. New Lobbying Rules Applies if you have any staff member on campus who spends more than 20 percent of his/her time advocating on federal issues or preparing for such actions If you hire an outside lobbyist, you must make sure they are reporting you on their own lobbying disclosure form and you must follow special gift ban and travel rules

53. Where Do We Go From Here? This week, this month, this year: –Engage with members of Congress –Tell your school’s story –Effect on your institution Building for Next Phase: Repair the Partnership –Document your compliance costs –NAICU efforts: U-Can and Together We-Can

56. Sources A. Clayton Spencer, “The New Politics of Higher Education”, Financing a College Education. Phoenix. AZ: Oryx Press, 1999, pp. 101-119. Constance Cook, Lobbying for Higher Education: How Colleges and Universities Influence Federal Policy, Vanderbilt University Press, 1998. www.independentvoting.org www.independentvoice.org Stan Collender: Various FY 2008 Budget Briefings College Board, “Trends in College Pricing 2006”.