The White House is seeking input from colleges and consumers about a draft “College Scorecard” that would provide prospective students with information about a college’s cost, graduation rate, average debt burden, loan-repayment rate, and job-placement rate. The scorecard, which President Obama announced in a speech at the University of Michigan last week, is designed to make it easier for students and their parents to comparison-shop for college. Read more here.
Category: Higher Education
Sequestration: What it means for Federal Research Funding
Automatic spending cuts, or sequestration, was established through the Budget Control Act passed by Congress last August and is set to go into effect January 2013. The sequestration process has great implications for all federal discretionary programs, including most – if not all – of federally funded research programs. Below is a link to a detailed explanation of this process and the impacts to federal spending in both the short- and long-term.
Obama proposes Race to the Top for College Affordability
Details are beginning to emerge on Obama’s proposal to make college affordable. He spoke to this during his State of the Union address on Tuesday, and again today at an event at the University of Michigan. US Department of Education Secretary Arne Duncan has also been talking about this issue since late last year, and often refers to the challenge as looking “beyond the iron triangle” of cost, quality, and access.
Obama is proposing a financial aid overhaul that would – for the first time – tie colleges’ eligibility for campus-based aid programs (Perkins loans, work-study, and supplemental grants for low-income students) to the institutions’ success in improving affordability and value for students. Under the proposed plan, the amount available for Perkins loans would grow to $8 billion, from the current $1 billion. Obama also wants to create a $1 billion grant competition, along the lines of the Race for the Top program for elementary and secondary education, to reward states that take action to keep college costs down. Finally, he has also proposed a separate $55 million competition for individual colleges to increase their value and efficiency.
The administration also wants to give families clearer information about costs and quality, by requiring colleges and universities to offer a “shopping sheet” that would make it easier to compare financial aid packages and post-graduate earnings and employment information – all in an attempt to give students and families a better sense of what to expect from the college and after graduation. This would be in addition to the requirement imposed this year on the “college cost calculator.”
These proposed changes would all require Congressional approval, which is not likely to happen this year. While some legislation may get introduced, most of the discussion around these ideas will take place out on the campaign trail. Hang on for a bumpy ride!
Read more about the State of the Union address.
Read more about the President’s speech at University of Michigan.
Read more about Secretary Duncan’s “Beyond the Iron Triangle” speech.
Senate, House Resolutions Recognize UW 150th
Resolutions were introduced in both the House and the Senate (H.Res.458 and S.Res.313) recognizing the UW’s 150th year and its’ contributions to Washington state and the nation.
The Senate resolution – introduced by Senator Cantwell and cosponsored by Senator Murray, passed the chamber this morning by unanimous consent.
The House Resolution was introduced by Congressman McDermott and cosponsored by Representatives Smith, Larsen, Inslee, Dicks, Reichert, and Herrera Beutler.
President Obama Announces New ‘Know Before You Owe’ Student Loan Initiative
President Obama announced today at a speech at the University of Colorado Denver, a new initiative called ‘Know Before You Owe’ designed to make college loans more affordable and reduce the financial burden on recent graduates – many of whom are struggling to find employment.
The administration is essentially speeding up by 2 years, a federal law that was set to go into effect in 2014. Announced today and beginning in January of 2012, students with federal loans who enroll in the Income Based Repayment Plan will experience a cap on their federal student loan repayments at 10% (currently 15%) of discretionary income and all remaining debt on these federal loans will be forgiven after 20 years (currently 25 years).
The second part of the initiative encourages students with one or more types of federal loans to consolidate them for a 0.5% interest rate reduction.
The administration estimates that this could affect up to 1.6 million borrowers and save some students hundreds of dollars a month.