The federal work-study program favors private colleges that enroll few low-income students, charges a new report by Young Invincibles. Work-study should be redesigned to help more needy students, the group urges.
To improve access to work-study funds, the authors recommend:
Base the formula for allocating work-study funds on how many Pell Grant recipients are enrolled at an institution and how many of those students graduate; eliminate institutions where Pell recipients make up less than 18 percent of students.
Increase the types of jobs available to students by providing more money to create off-campus job opportunities.
Create a career internship program to encourage for-profit employers to post internship opportunities.
Use federal funds to reimburse employers that work with students to create internships related to their majors and career goals.
Graduate students should not be eligible for work-study funding, the report recommends.
Colleges should be rewarding for educating students, not for selecting only the best, said Andrew P. Kelly, who directs the American Enterprise Institute’s Center on Higher Education Reform, at hearings on the president’s proposed college ratings system.
Unfortunately, our ability to measure the “value-added” by a college program is almost nonexistent, and the measures that the Department of Education has proposed are woefully insufficient as an approximation of that quantity.
It is much easier for colleges to change the students that they enroll than it is to change the quality of education that they provide.
If the ratings system does not account for this, it will likely set up a scenario in which selective colleges are provided with even more resources, while open-access institutions work to become more selective in an effort to improve their outcomes
Federal ratings should not be linked to federal student aid, argued Kelly. Instead, the ratings should be designed to help prospective students evaluate different programs at different colleges.
Outcomes measures will be based on flawed graduation data, said Kelly. “We need some validation that the diplomas colleges award are worth something,” such as whether graduates earn enough to pay off their loans. In addition, those developing PIRS should include “rigorous pre- and post- measures of success, or at least identify relevant control groups to compare results.”
Smaller, more selective schools could raise their access ratings and lower their net price easily by admitting more low-income students, Kelly said. That would help a small number of students.
Large, less selective schools with low rates of student success have a tougher choice. “They can embark on the hard, uncertain work of improving teaching and learning to boost student success. Or they can take the easier route and admit fewer low-income students.”
All of this is to say that if improvement is quicker and easier for low access/high success schools than it is for high access/low success schools, then rewards will accrue to the former. That will simply reinforce their place atop the higher education system and, frankly, waste taxpayer dollars on schools that don’t need them.
Selectivity is the key to U.S. News’ prestigious “best colleges” rankings, Kelly wrote in an earlier Forbes column. “Those measures often have everything to do with who colleges admit and less to do with what colleges actually teach them while they’re there.”
Police are investigating a $200,000 financial aid scam at the San Francisco Bay Area’s College of Marin, reports the San Francisco Chronicle. Twenty-three people are suspected of posing as online students to collect Pell Grants.
Two faculty members noticed that “several students in their online classes shared the same address and phone number, weren’t participating in online discussions and withdrew soon after financial aid had been disbursed,” reports the Chronicle.
California community colleges give fee waivers to Pell-eligible students and send the entire grant — up to $5,730 — to the student to cover books, living expenses and commuting. “Pell runners” disappear as soon as the check clears. It’s especially easy to scam online classes.
Three men posing as students pleaded guilty in February to stealing more than $1 million in financial aid received through City College of San Francisco, Chabot College in Hayward and Ohlone College in Fremont from 2007 and 2011.
. . . A ringleader often recruits fake students who allow their Social Security numbers and other personal information to be used to enroll in courses and to apply for federal aid in exchange for a cut of the cash.
Colleges don’t have to repay the stolen money, but loans to scammers — which aren’t going to be repaid — will increase their student default rate.
Fraud rings steal as much as $1 billion a year, estimates the U.S. Department of Education’s Office of the Inspector General.
In the case involving City College of San Francisco, Chabot and Ohlone, the three men created 104 financial aid accounts for fake students, according to a federal indictment filed in the U.S. District Court in Oakland in August 2013.
Rate colleges on “social responsibility,” said the departing chair of the National Association of Student Financial Aid Administrators at the group’s annual conference. Instead of President Obama’s proposed ratings system, colleges should be recognized for educating low-income students, said Craig Munier, who directs financial aid at the University of Nebraska at Lincoln.
The plan, which is modeled on the LEED ratings of green buildings, would assign institutions ratings of silver, gold, or platinum based on a calculation that would take the percentage of a college’s undergraduate students who are eligible for Pell Grants, multiply the number by a ratio of credit hours earned to credit hours attempted, and divide it by the institution’s cohort-default rate.
Part of the goal, Mr. Munier said, “is to create a little public embarrassment” for institutions that are not fulfilling their duty to educate needy students. He jokingly called the plan “Craig’s LEED certification on social responsibility.”
Panelist Marcus D. Szymanoski, manager of regulatory affairs at DeVry University, argued for multiple metrics that would recognize that different students have different priorities.
More than 18 percent of Pell recipients with a B average or higher didn’t reapply for aid for a second year of college, a recent study reports. Close to half did not return to college and those who did return had lower persistence rates than students who had reapplied for aid,
Text-message reminders to apply for aid can boost persistence for community college students, according to a new working paper, Freshman-Year Financial-Aid Nudges. The nudges cost only $5 per student.
Researchers designed a series of messages about financial aid, refiling the Free Application for Federal Student Aid (Fafsa) and maintaining satisfactory academic progress, a precondition of receiving aid, reports the Chronicle of Higher Education.
A group that had helped the students in high school with college and aid counseling, uAspire, sent the messages.
The messages were designed to both connect students with advising and remind them about deadlines and requirements.
. . . The messages made a difference for community-college students. Sixty-four percent of such students in the control group persisted to their second year. For those who got the messages, the rate was 12 percentage points higher: 76 percent.
Messages didn’t affect the re-enrollment rate — 87 percent — of students at four-year colleges and universities.
A two-question postcard could replace the lengthy Free Application for Federal Student Aid (Fafsa) under a bipartisan bill introduced in the Senate. Students would be asked their family size and household income two years earlier.
The Financial Aid Simplification and Transparency Act, introduced by Sen. Lamar Alexander, R-Tenn., and Sen. Michael Bennet, D-Colo., also would let students know about their financial aid prospects before they apply to colleges, restore year-round Pell Grants and simplify student loans. Students would be offered two repayment options: income-based repayment and the standard 10-year repayment plan.
“Every year, 20 million students waste millions of hours and countless dollars on a 100-question application form that only needs to be the size of a postcard,” Alexander said in a statement.
Year-round Pell Grant would be paid for by eliminating subsidized loans,
Simplifying Fafsa Will Get More Kids Into College, argue Alexander and Bennet in a New York Times op-ed. Some students give up on going to college because they can’t handle the form, they write.
The two-question Fafsa would be accurate for 95 percent of students, argue Susan M. Dynarski and Judith E. Scott-Clayton in College Grants on a Postcard.
Students’ families would save almost 100 million hours a year — the equivalent of nearly 50,000 full-time jobs — with a simplified Fafsa, estimate Dynarski and Scott-Clayton.
Colleges, which now spend $432 million auditing aid applications, would see much lower administrative expenses, they write.
Extending Pell Grants to dual-enrollment students would encourage low-income students to get a head start on college, advocates argued before a congressional briefing yesterday. “For low-income students, they are essentially penalized for taking college early,” Adam Lowe, the executive director of the National Alliance of Concurrent Enrollment Partnerships, told CollegeBound.
Dual-enrollment students are more likely to enroll in college and earn a degree, says Lowe.
In some states, dual-enrollment courses are free, but most charge students for some of the costs, Lowe said.
Several financial-aid proposals are under discussion, including a recent report from the College Board, reports CollegeBound.
The U.S. Department of Education late last year asked for colleges willing to be experimental sites for new financial aid strategies, including giving high school students Pell Grant money to pay for college. The National Association of Student Financial Aid Administrators recently suggested a promise of a Pell Grant in 9th grade would motivate students to pursue higher education.
It’s hard to estimate the cost of extending Pell coverage. About 1.4 million high school students are taking more than 2 million college courses across the country.
Education and the American Dream was the theme of Florida Sen. Marco Rubio’s keynote speech at Making Community Colleges Work, a Next America session sponsored by National Journal at Miami Dade College.
The son of immigrants, Rubio used Pell Grants, student loans, work study and summer jobs to pay for a four-year degree and law school. He started his career as an attorney with $100,000 in student loans.
To find a good-paying job, “it is vital that you get the right degree geared toward the right industry,” Rubio said.
Nationally, majors such as business, liberal arts, and hospitality have underemployment rates at or above 50 percent. There are simply more graduates than jobs in these industries. Meanwhile, engineering, health services and education all have underemployment rates less than 25 percent.
Students and their families need to be equipped with the information necessary to make well-informed decisions about which majors at which institutions are likely to yield the best return on investment. This is why I, along with Senator Ron Wyden, proposed the “Student Right to Know Before You Go Act,” which aims to give students reliable data on how much they can expect to make versus how much they can expect to owe.
Rubio called for making income-based repayment the universal method for student loans. He also proposed an alternative to student loans known as Income Share Agreements.
Let’s say you are a student who needs $10,000 to pay for your last year of school. Instead of taking this money out in the form of a loan, you could apply for a “Student Investment Plan” from an approved and certified private investment group. In short, these investors would pay your $10,000 tuition in return for a percentage of your income for a set period of time after graduation – let’s say, for example, 4 percent a year for 10 years.
This group would look at factors such as your major, the institution you’re attending, your record in school – and use this to make a determination about the likelihood of you finding a good job and paying them back. . . . Your only obligation would be to pay that 4 percent of your income per year for 10 years, regardless of whether that ends up amounting to more or less than $10,000.
Income Share Agreements are a great idea, writes Richard Vedder. Investors “buy equity in students as opposed to lending to them.” The risk shifts from students to investors.
Rubio also called for better career and vocational education in high school, apprenticeships and “more pathways for working parents” at the community college level.
Reforming the “broken accreditation system” would open the door to “new, innovative and more affordable competitors,” he said. He proposed a new accrediting agency for online education. With standardized tests to demonstrate competency, students could learn online or on the job and earn a low-cost job certification or degree.
Low- and moderate-income college students are eligible for Pell Grants — until they earn bachelor’s degrees. With so many four-year graduates struggling to find jobs, the U.S. Education Department is funding an experiment at Lewis and Clark Community College in Illinois. Unemployed or underemployed college graduates will receive Pell aid to fund up to a year of job training, reports Community College Week.
Community college tuition could be free to high school graduates in Tennessee, Mississippi and Oregon.
Tennessee Gov. Bill Haslam proposed making two years of a community or technical college education free in his State of the State address. “Net cost to the state, zero. Net impact on our future, priceless.”
“We just needed to change the culture of expectations in our state,” the governor told the New York Times. “College is not for everybody, but it has to be for a lot more people than it’s been in the past if we’re going to have a competitive work force.”
Community college costs only $3,800 a year in Tennessee, just above the national average. With help from Pell Grants, most students pay little or nothing in tuition and fees. However eliminating tuition would enable lower-income students to use their Pell aid to pay for books, supplies, transportation and living expenses.
The “Tennessee Promise” will have a psychological impact, Haslam predicted. Many people don’t realize community and technical colleges are affordable. “If we can go to people and say, ‘This is totally free,’ that gets their attention.”
The plan would cover Tennessee’s 13 community colleges, which grant academic degrees, and 27 technical colleges, which provide job training. The technical system is nationally known for high success rates.
The net cost to the state isn’t really zero, but Haslam estimated diverting lottery revenue would cover the $34 million a year.
Mr. Haslam also called for Tennessee’s public colleges to make a new effort to recruit the state’s nearly one million adults who have some college credits but ended their educations without earning degrees or professional certificates. And he proposed expanding a program that gives particular help to struggling high school students so they can go to college without needing remedial classes that do not earn college credit; studies have shown that students who take remedial courses are far less likely to graduate.
High school graduates in Mississippi could attend community college for free for two years under a bill being considered in the Legislature, reports the Clarion-Ledger. Scholarships would be available to students younger than 21 who enroll full-time and maintain a 2.5 grade point average.
The idea started at Meridian Community College, which began offering what it calls a “tuition guarantee” in fall 1996, using privately donated money.
Oregon legislators also may study whether it’s feasible to let high school graduates attend community college for free. “If we get this right, I think we can unleash a tremendous amount of motivation within these young people, giving them the motivation to stay in school, to get a certificate, to achieve that additional learning that can make a difference in terms of their economic success,” Gov. John Kitzhaber told the Senate Education and Workforce Development Committee.