The issues of college affordability and student-loan debt have become critical policy discussions at both the state and federal levels. Higher education is a gateway to our 21st century global marketplace, but it comes with risks attached. I am a strong supporter of Pell Grants and work-study programs to assist students with income-based need. As someone who attended SUNY Brockport — when my tuition was mostly covered by a Regents Scholarship — I recognize the needs of students from families of limited means to have the ability to attend college. We should also, however, encourage students to better plan for higher education and pursue programs where there is a strong likelihood of employment post-graduation.
Increased student loan borrowing has come as a direct result of massive tuition inflation over the past several decades. By some measures, the only consumer good which is increasing in cost faster than higher education is healthcare. Many analysts have linked the ever-increasing cost of college to the easy availability of subsidized student loans, especially PLUS loans to parents.
As your representative, I will work with colleagues in Congress to develop a college affordability agenda.
First, we should encourage more families of aspiring college students to help their children achieve a college education through responsible saving.
A 2012 Government Accountability Office study found that less than 3% of Americans were saving for college in 529s. Even among the 25% of families who expected to be paying for college within 5 to 10 years, only 7% were saving for that expense through either a 529 or a Coverdell Education Savings Account. A national effort to encourage parents to open and to fund education savings programs will not only promote saving but college attendance as well.
In Rhode Island, for example, the CollegeBoundbaby program launched in January of this year allows parents to open a 529 at birth through a simple application process which also funds the first $100 through a partnership with AllianceBernstein, the company which manages the Rhode Island CollegeBound fund. A similar federal initiative with accounts funded by private dollars would be a powerful incentive for families to open and continue funding a college savings account.
Next, Congress should utilize loan-default calculations which more accurately represent the ability of borrowers from particular institutions to repay their federally guaranteed loans and act expeditiously to remove Title IV eligibility from non-performing colleges and universities in order to fund grant programs for low-income, academically performing students.
If you know the real price of something, you’re likelier to make better choices. The same holds true for choosing a college or university.