Campus Progress Statement on the National Report Card on Higher Education

 
Washington, DC -- December 3, 2008 -- America has flunked on college affordability! That is the message sent by a report released earlier today by The National Center for Public Policy and Higher Education that grades states’ higher education systems by their affordability, participation, preparation, and completion. Every state in the US except California received an “F” when it came to college affordability. On average, college costs low and middle income families 25% to 55% of their family income after financial aid is considered.

This shocking reminder of America’s failure to invest in the next generation should spur students, families, colleges and policymakers into action. With the national dialogue focused almost exclusively on short-term measures to bailout certain sectors of our economy, Campus Progress believes that a strong case should be made for a significant, long-term investment in college access and affordability. An educated workforce is the backbone to any viable vision of working economy, but without a renewed commitment to college affordability America will continue to fall behind in the global market.

The recession is leading more and more families down a road where providing a college education for their kids will make it much harder to put food on the table, make mortgage payments, and cover the costs of health care. Family budgets are being stretched to the limit, which has coincided with a sharp increase in applications for student aid. If students are met with larger tuition bills at the college gates, rather than larger student aid packages, many will have no choice but to turn around and walk away.

In concert with higher tuition costs at private institutions, budget deficits are forcing many states to make deep cuts to their systems of higher education. The resulting tuition hikes will only add to the already skyrocketing cost of college – tuition increased an average 439% from 1986 to 2006, according to the report.

To compound the problem, many schools have been irresponsible when it comes to awarding their own institutional grants, discounts, and scholarships. According to the report, wealthier students are receiving more aid from their schools, on average, than low and middle income students. A sizable amount of the aid that many schools award goes to families that could have afforded to attend anyway. At a time when dollars are scarce, they need to be used wisely – colleges should begin awarding their institutional aid on the basis of need.

Finally, the federal government must play a decisive role in the long-term reprioritization of college affordability and access. Recently, Treasury Secretary Henry Paulson announced, despite the concerns of student groups and college affordability advocates, to use part of the $700 Billion dollar bailout to prop up providers of risky, high-interest private student loans. Currently, students that take out these loans do not have basic borrower protections, like the right to discharge the debt through bankruptcy if they fall on to hard economic times.

We believe that federal government needs to acknowledge the central problem – that some students are forced to rely on risky private loans in the first place. Future efforts should focus on plans to invest in student aid that help low and middle income students, and result in better protections for student borrowers.

Campus Progress continues to make college more affordable through its Debt Hits Hard campaign. We are available to comment on the findings of the report and the current climate for college students burdened with debt. We hope that this powerful new report will provide student advocates with the opportunity to begin reframing the debate about college affordability as we face an uncertain economic future.

For an overview of the report findings, or to download the full report, visit: http://measuringup2008.highereducation.org.