college affordability & completion

1. college affordability & completion

2. How to use this presentation deck • This slide deck has been created by the U.S. Department of Education as a resource tool for the public and is part of a larger “bookshelf” of resources that may be found on the Department’s website. • Within the larger bookshelf, you will find individual resource “booklets” like this one, on topics ranging from early learning to higher education. • Together, these booklets provide facts and data on: • Progress in education reform • The challenges ahead • The U.S. Department of Education’s initiatives in these areas • Please view the notes section on each slide for additional information and resources. • The entire deck is in the public domain, and may be used and shared freely.

3. “America cannot lead in the 21st century unless we have the best educated, most competitive workforce in the world.”“But the truth is, an education is about more than getting into a good college.  It’s about more than getting a good job when you graduate.  It’s about giving each and every one of us the chance to fulfill our promise, and to be the best version of ourselves we can be.” —President Barack Obama

4. college completion We used to be #1. we are now #12.

5. The rising cost of college

6. The cost of college: Private, nonprofit, and for-profit colleges • The average “net price” for undergraduates to attend a four-year private, nonprofit institution amounted to $23,000 during the 2011–2012 academic year. • At private, for-profit four-year institutions, the average net price was $16,600. • At for-profit two-year institutions, the net price averaged $18,600.

7. Higher education pays: The relationship between education and unemployment Unemployment Rates, by Age and Education Level, 2012 15.4 12.1 11.2 9.6 8.7 6

8. Higher education pays Median Earnings Full-Time Year-Round Workers Ages 25 and Older, by Education Level, 2011

9. The president’s goal

10. The president’s plan: Building an economy that works for everyone “Higher education can’t be a luxury—it is an economic imperative that every family in America should be able to afford.” — President Barack Obama

11. The president’s plan: Building an economy that works for everyone • Invest in higher education • Galvanize the shared responsibility of states, institutions, and the federal government • Support America’s community colleges • Provide students and families with the tools to plan for and afford college

12. In August 2013, President Obama outlined a plan to combat rising college costs and make college affordable for American families: • Pay colleges and students for performance • Promote innovation that cuts costs and improves quality • Help students manage loan debt

13. FEDERAL SUPPORT FOR HIGHER ED • Increase Pell Grants • President Obama has raised the maximum Pell Grant award to $5,785 for the 2014-15 award year. • Total Pell Grant recipients have increased by 50%– from 6 million students in 2008 to more than 9 million today. • Help Students Manage Debt • Income-Based Repayment will allow students to cap repayment of loans at 10% of their monthly income. • The expanded Pay As You Earn program will open repayment options to 1.6 million additional students. • Public Service Loan Forgiveness supports students pursuing public service careers. • The President has called for changing the structure of interest rates on federal loans for students and parents to reflect market rates.

14. FEDERAL SUPPORT FOR HIGHER ED • Direct Savings to Help Students • Conversion to Direct Loans saved $68 billion over 11 years, of which $40 billion has gone directly to students. • Trade Adjustment Assistance Community College Career Training Initiative (TAACCCT) • A partnership between the U.S. Departments of Education and Labor distributes $2 billion in competitive grants to help community colleges—in partnership with industry—to strengthen the transfer and completion pipeline across an entire region or industry sector.

15. FEDERAL SUPPORT FOR HIGHER ED • Easing Access to Federal Aid • Since 2009, the simplification of the Free Application for Federal Student Aid (FAFSA) has helped fuel a 30 percent increase in applications. • More than 21 million students will submit a FAFSA this year. • Expand Education Tax Credits • The American Opportunity Tax Credit (AOTC) provides 9.4 million students and families with up to $10,000 for four years of college. • The Obama administration is working with Congress to make this credit permanent.

16. Federal support for higher ed: A focus on community colleges • The White House hosted the first-ever Community College Summit in October 2010. • This was followed by four regional summits across the nation, organized by the Office of Vocational and Adult Education at the U.S. Department of Education.

17. Federal support for higher ed: A focus on community colleges Additional U.S. Department of Education activities supporting community colleges include: • The First in the World Fund • An investment in individual colleges and nonprofit organizations designed to develop, validate or scale up innovative and effective strategies for boosting productivity and enhancing quality on campus • Competency-Based Education • Dear Colleague Letter released in 2013 – provides institutions with guidance and flexibility to innovate away from traditional learning models while using Title IV aid • Experimental Sites • Federal Student Aid (FSA) and the Institute of Education Sciences (IES) are currently conducting experiments around short-term Pell awards and aid for foreign students at community colleges

18. FEDERAL SUPPORT FOR HIGHER ED • College Affordability and Transparency Center: • Financial Aid Shopping Sheet • Interactive Loan Counseling Tool • College Scorecard • New Federal Student Aid Website: www.studentaid.gov

19. Federal support for higher ed: A resource for guidance counselors & other advisors • The Financial Aid Toolkit, available at FinancialAidToolkit.ed.gov, consolidates financial aid resources and content into an online database, making it easy for individuals to quickly access information they need to support students in selecting and financing college.

20. Higher education and the military: Supporting our veterans Eight Keys to Help Veterans and Service Members Transition to and Thrive in the Classroom: • Create a culture of trust and connectedness across the campus community to promote well-being and success for veterans. • Ensure consistent and sustained support from campus leadership. • Implement an early alert system to ensure all veterans receive academic, career, and financial advice before challenges become overwhelming. • Coordinate and centralize campus efforts for all veterans, together with the creation of a designated space (even if limited in size). • Collaborate with local communities and organizations, including government agencies, to align and coordinate various services for veterans. • Utilize a uniform set of data tools to collect and track information on veterans, including demographics, retention, and degree completion. • Provide comprehensive professional development for faculty and staff on issues and challenges unique to veterans. • Develop systems that ensure sustainability of effective practices for veterans.

21. Cradle to college and career Improving education across the spectrum Please see the additional slide deck “booklets” in this 13-part presentation for more information about needs and efforts in these areas: • Improving Education for all Students • Quality Early Learning • K-12 Education • Teachers & Leaders • STEM Education • Turnaround Schools • Safe Schools • Standards & Assessments • Technology & Data • Ladders of Opportunity