Federal UpdateState Higher Education Executive Officers

2011 Higher Education Policy Conference

David A. Bergeron Rosemarie NassifDeputy Assistant Secretary for Senior Advisor to the Policy, Planning, and Innovation Assistant Secretary for Office of Postsecondary Education Postsecondary Education

Background How did we get here?

Regulatory Activity Budget Proposals Gainful Employment Meeting President Obama’s

2020 College Completion Goal

TOPICS

Percentage of Undergraduates Applying for Aid

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

0

10

20

30

40

50

60

70

80

90

1972

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005Low-income

High-income

Pell Grant Max

Linear (Low-income)

Linear (High-income)

Percentage of High School Graduates Enrolling the Fall After Graduation by

Family Income

Federal Student Aid Available by Type of Aid

2005 2008 2010 2011 CR 2012 Request

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000

GrantsLoansWork-Study

Fiscal Year

In billions of dollars

The share of students receiving aid has increased but not uniformly across all sectors of higher education.

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20406080

100

Source: National Postsecondary Student Aid Survey, 2007-08

Percentage of Students Receiving Student Aid By

Sector

Financial aid to students is increasing but, despite significant increases in Pell Grant funding, the increase has primarily been in the form of Federal student loans.

Ten-Year Trend in Student Aid and Nonfederal Loans per FTE Used to Finance Postsecondary Education Expenses in Constant 2009 Dollars, 1999-2000 to 2009-10

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

GrantsLoans

Source: Trends in Student Aid, 2010, College Board

Trends in Student Aid

Instructional expenses have been relatively constant although the share of funds spent on instruction at for-profit institutions has been declining.

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

0%

5%

10%

15%

20%

25%

30%

35%

PublicPrivateProprietary

NOTE: Public institutions not included in 2008-09 due to changing in reporting.Source: IPEDS Data Center

Instructional Expenses as a Percentage of Total Expenses

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10

20

30

40

50

60

70

80

20092001

Any Degree or Certificate within Prior 6 Year PeriodBy Type of First Institution Attended

Source: Beginning Postsecondary Students

  Public

4-year

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for-profi

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0

10

20

30

40

50

60

70

80

BlackHispanicWhite

Attainment of Any Degree or Certificate within Prior 6 Years, 2009 by Type of First Institution Attended and by Race and Ethnicity

Source: Beginning Postsecondary Students

Budget Proposals

President’s 2020 Goal High Priority Performance Goals

Reform Struggling Schools Ensure Effective Teacher Corps Develop and Adopt College/Career-Ready

Standards Simplify Student Aid Evidence-based Policy—Invest in What

Works Use Data to Inform Decisions

12

Budget Proposals

FY 12 Budget Policies Maintain and Sustain Pell Grants

Two Pell Grants in One Year Eliminate Graduate Student In-school Interest

Subsidy Expanded and Modernized Perkins Loan

Program Student Loan Conversion

Presidential Teaching Fellows College Completion Agenda

“First In the World” (FIPSE) College Completion Incentive Grants (States)

13

Budget Proposals

Presidential Teaching Fellows Replace TEACH Grant Program States:

Implement Performance-based Licensure Enhance Teacher Prep Program Accountability Provide for $10,000 One-year Scholarships Three-year Commitment to High-need Subjects in

High-need Schools

14

Budget Proposals

First In the World Seek Innovative Solutions, Build Evidence

and Improve Higher Education Productivity, Efficiencies and Quality

FIPSE Grant Competition Investing in Innovation with a Strong Research

Component, Rigorous Evaluation, and Dissemination of Effective, Proven Results

Data Driven—Differentiated Funding Tiers Peer Review by Content/Research/Evaluation Specialists

15

Budget Proposals

College Completion Incentive Grants Encourage State- and Institutional-level

Reform in College Completion Performance-based Funding Reward States and IHEs for Reforms

Leading to Successful Outcomes: Improve College Preparation Facilitate Transfers Among Public IHEs Increase Goals for Graduate Rates & the

Number of Graduates

16

Budget Proposals

FY 12 Budget Policies Maintain and Sustain Pell GrantsTwo Pell Grants in One YearEliminate Graduate Student In-school

Interest Subsidy Expanded and Modernized Perkins Loan

Program Student Loan Conversion

Presidential Teaching Fellows College Completion Agenda “First In the World” (FIPSE) College Completion Incentive Grants (States)

17

Budget Proposals

Regulatory Activity

Program Integrity October 29, 2010: Effective July 1, 2011 June 13, 2011: Effective July 1, 2012

Foreign Schools November 1, 2010: Effective July 1, 2011

19

Regulatory Activity

Program Integrity Final Regulations Holding Programs Accountable for

Preparing Students for Gainful Employment:◦ Graduation Rate and Job Placement Disclosures◦ Approval of Additional Programs

Protecting consumers from misleading or overly aggressive recruiting practices, and clarifying state oversight responsibilities:

◦ Misrepresentation◦ Incentive Compensation◦ State Authorization

Program Integrity Final Regulations Ensuring that only eligible students receive

federal funds:◦ High School Diploma◦ College Credits◦ Ability To Benefit (ATB)◦ Satisfactory Academic Progress◦ Verification

Clarifying the courses that are eligible for federal aid, and the amount of aid that is appropriate:o Written Arrangemento Retaking Courseworko Determining When a Student Has Withdrawno Disbursing Federal Student Aid Fundo Credit Hour

Negotiated Rulemaking 2011-12 What we were thinking? “Naturally readable” Federal Student

Loan regulations Total and permanent disability student

loan discharge Hearings in Tacoma, Chicago & Charleston Public comment received and under review Announcement of one or more negotiating

committees with tentative agenda forthcoming

22

Regulatory Activity

Gainful Employment

An educational program is Title IV eligible only if the program: If offered by a public or non-profit institution, leads to a degree; or

If offered by any institution “leads to gainful employment in a recognized occupation”.These programs are referred to as a “Gainful Employment” or “GE” Programs.

24

HEA Requirement

Proprietary institutions All programs except: Programs leading to a baccalaureate

degree in liberal arts offered since January 2009 that has been regionally accredited since October 2007.

Preparatory non-certificate coursework necessary for enrollment in an eligible program.

25

HEA Requirement

Public institutions and not-for-profit institutions

All programs, except for: Programs that lead to a degree; Programs of at least two years in length

that are fully transferable to a bachelor’s degree program; and

Preparatory non-certificate coursework necessary for enrollment in an eligible program.

26

HEA Requirement

Teacher certification programs leading to a certificate awarded by the institution but not to teacher training programs that do not lead to a certificate.

ESL programs leading to a certificate or, if a proprietary institution, a degree.

27

GE Programs include -The Law - HEAHEA Requirement

Two sets of Final Rules published on October 29, 2010, with effective date of July 1, 2011- Program Integrity (included Gainful

Employment Reporting and Disclosures) Gainful Employment – New Programs

Final Rules on metrics to define gainful employment published on June 13, 2011, with effective date of July 1, 2012 or later.

28

The Regulations

For each GE Program, institution must provide prospective students with specific information (Effective July 1, 2011)

Institutional disclosures to provide information to help students choose among GE programs.

29

Disclosures

When available, institutions will be required to use a disclosure form provided by the Department. The form was not available by July 1, 2011.

Institutions must comply with these disclosure requirements independently until form is available.

Disclosure Form

By October 1, 2011 institutions must report information on students who were enrolled in a GE program for the 2006-07 through the 2010-11 award years.

Information includes: Student and program identifying

information; Loan amounts; Enrollment information; and Tuition and Fees (optional).

Gainful Employment Reporting

32

Adding a New GE Program Must notify ED at least 90 days before

the first day of class. If the first day of class is on or after July 1, 2011 and before October 1, 2011, notification was due by July 1, 2011

If the first day of class is on or after October 1, 2011, institutions must provide notification to the Department at least 90 days prior to the first day of class.

Notice of Intent to Offer an Educational Program must describe: How the institution determined the need for

the program? How the program was designed to meet

market needs? Any wage analysis conducted.

33

Notification Required

GAINFUL EMPLOYMENT METRICS

What do 90,000 comments look like?

Final Rule Final Rule published on June 13, 2011 –

Defines “gainful employment” to be when a substantial number of the GE Program’s students – Are repaying their Title IV loans –

Repayment Rate Have a reasonable debt burden –

Debt to Earnings Ratio. Informational rates will be issued in 2012 First official rates will be issued in 2013

35

Two Metrics Repayment Rate –

The percentage of loans that the GE Program’s former students are repaying (weighted for loan balance).

Debt to Earnings Ratio –For the GE Program’s completers, the average educational loan annual repayment amount as a proportion of the average borrowers’ income.

36

Failing programs do not lose eligibility immediately.

Standards help programs raise performance.

37

Program ImprovementFinal RuleImpacts

Meeting President Obama’s

2020 College Completion Goal

46

Percentage of Adults Age 25-34with Postsecondary Education

(Associate Degree of Higher in U.S. per 2008 Current Population Survey, U.S. Census Bureau)

Less than high school10%

High school grad-uate28%

Associate's degree17%

Some college12%

Bachelor's degree23%

Graduate degree10%

47

Education Requirements for Jobs, 2018

Georgetown University, Center on Education and the Workforce, 2010 p. 14 http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf

No High

Scho

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High Sc

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Some C

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Associ

ate's D

egree

Bache

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egree

Master'

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Doctora

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ree

Profes

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ree$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$19,600 $26,700 $31,000 $32,700 $42,700

$51,100 $68,800 $74,400

$4,700 $7,100

$8,700 $9,300

$13,000

$16,200

$23,100 $25,600

Earnings & Tax Payments by Educa-tional Attainment

Taxes PaidAfter-Tax Earn-ing

Sources: The College Board, Education Pays, 2010

$100,000

$91,900

$67,300

$55,700

$42,000$39,700

$33,800

$24,300

Education for a Vibrant Democratic Society

Informed, effective participation in democratic life.

Capacity to solve the most pressing problems of our time.

Ability to work in diverse environments with diverse cultures, religions, ethnic backgrounds

Global perspectives

50

AccessClose the opportunity gap by improving affordability and increasing access to college and workforce training, especially for adult learners, low-income students, and under-represented minorities.

QualityFoster institutional quality with accountability and transparency.

CompletionIncrease degree and certificate completion and job placement, with special attention to fast growing first generation, under-represented and economically disadvantaged populations.

Strategic Objectives

Challenges to the Completion AgendaReductions in State funding

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Alaska

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New Jer

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-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

Approximate Percentage Change in FY 2012 State Oper-ating Support for Four-Year Public Universities (AASCU, 7-

2011)

Challenges - Affordability

Achieving the 2020College Completion Goal

Increase the U.S. College Degree Attainment Rate from 40 to 60%

10 million additional Americans ages 25-34 with an associate or baccalaureate degree (includes 8 million beyond projected growth)

3.7 million more high school graduates will become college graduates

6.3 million adult learners will become college graduates

Note: The attainment rate reflects the number of individuals in the population who have attained the degree or diploma. This differs from the graduation/completion rate, which measures the number of individuals within a cohort who graduate or complete their program within a certain amount of time.

Data Collection

Practices to Support College

Completion

State Outreach(SHEEOs, National

Governors Association)

Inter-Agency College

Completion Champions

Institution Outreach and

SupportPublic

Communications

Internal Program

Alignment

College Completion Task Force

President’s Goal: First in the World!

Initiatives Launched / Ongoing College Completion Tool Kit for States Data Dashboard for ED Website Request for Information (RFI)

Tool Kit Action Steps1. Set Goals; Develop an Action Plan2. Embrace Performance-Based Funding3. Align High School standards with College

Entrance Standards4. Make it Easier for Students to Transfer5. Use Data to Drive Decision Making6. Accelerate Learning and Reduce Costs7. Target Adults With Some College

Momentum Forward Data Driven/Research-Based Best Practices Forum of Top Researchers Tool Kit for Higher Education State and Regional Summits/Forums External Stakeholders Map of National Strategies Game Changer

Three Commandments Advance the Conversation Promote Innovation Celebrate Results

Rosemarie.Nassif@ed.gov

Questions

59