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David A. Bergeron Rosemarie Nassif

Federal Update State Higher Education Executive Officers 2011 Higher Education Policy Conference . David A. Bergeron Rosemarie Nassif Deputy Assistant Secretary for Senior Advisor to the Policy , Planning, and Innovation Assistant Secretary for

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David A. Bergeron Rosemarie Nassif

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  1. Federal UpdateState Higher Education Executive Officers2011 Higher Education Policy Conference David A. Bergeron Rosemarie Nassif Deputy Assistant Secretary for Senior Advisor to the Policy, Planning, and Innovation Assistant Secretary for Office of Postsecondary Education Postsecondary Education

  2. TOPICS • Background • How did we get here? • Regulatory Activity • Budget Proposals • Gainful Employment • Meeting President Obama’s 2020 College Completion Goal

  3. Percentage of Undergraduates Applying for Aid

  4. Percentage of High School Graduates Enrolling the Fall After Graduation by Family Income

  5. Federal Student Aid Available by Type of Aid In billions of dollars

  6. Percentage of Students Receiving Student Aid By Sector The share of students receiving aid has increased but not uniformly across all sectors of higher education. Source: National Postsecondary Student Aid Survey, 2007-08

  7. Trends in Student Aid Ten-Year Trend in Student Aid and Nonfederal Loans per FTE Used to Finance Postsecondary Education Expenses in Constant 2009 Dollars, 1999-2000 to 2009-10 Financial aid to students is increasing but, despite significant increases in Pell Grant funding, the increase has primarily been in the form of Federal student loans. Source: Trends in Student Aid, 2010, College Board

  8. Instructional Expenses as a Percentage of Total Expenses Instructional expenses have been relatively constant although the share of funds spent on instruction at for-profit institutions has been declining. NOTE: Public institutions not included in 2008-09 due to changing in reporting. Source: IPEDS Data Center

  9. Source: Beginning Postsecondary Students

  10. Attainment of Any Degree or Certificate within Prior 6 Years, 2009 by Type of First Institution Attended and by Race and Ethnicity Source: Beginning Postsecondary Students

  11. Budget Proposals

  12. Budget Proposals • President’s 2020 Goal • High Priority Performance Goals • Reform Struggling Schools • Ensure Effective Teacher Corps • Develop and Adopt College/Career-Ready Standards • Simplify Student Aid • Evidence-based Policy—Invest in What Works • Use Data to Inform Decisions

  13. Budget Proposals • FY 12 Budget Policies • Maintain and Sustain Pell Grants • Two Pell Grants in One Year • Eliminate Graduate Student In-school Interest Subsidy • Expanded and Modernized Perkins Loan Program • Student Loan Conversion • Presidential Teaching Fellows • College Completion Agenda • “First In the World” (FIPSE) • College Completion Incentive Grants (States)

  14. Budget Proposals • Presidential Teaching Fellows • Replace TEACH Grant Program • States: • Implement Performance-based Licensure • Enhance Teacher Prep Program Accountability • Provide for $10,000 One-year Scholarships • Three-year Commitment to High-need Subjects in High-need Schools

  15. Budget Proposals • First In the World • Seek Innovative Solutions, Build Evidence and Improve Higher Education Productivity, Efficiencies and Quality • FIPSE Grant Competition • Investing in Innovation with a Strong Research Component, Rigorous Evaluation, and Dissemination of Effective, Proven Results • Data Driven—Differentiated Funding Tiers • Peer Review by Content/Research/Evaluation Specialists

  16. Budget Proposals • College Completion Incentive Grants • Encourage State- and Institutional-level Reform in College Completion • Performance-based Funding • Reward States and IHEs for Reforms Leading to Successful Outcomes: • Improve College Preparation • Facilitate Transfers Among Public IHEs • Increase Goals for Graduate Rates & the Number of Graduates

  17. Budget Proposals • FY 12 Budget Policies • Maintain and Sustain Pell Grants • Two Pell Grants in One Year • Eliminate Graduate Student In-school Interest Subsidy • Expanded and Modernized Perkins Loan Program • Student Loan Conversion • Presidential Teaching Fellows • College Completion Agenda • “First In the World” (FIPSE) • College Completion Incentive Grants (States)

  18. Regulatory Activity

  19. Regulatory Activity • Program Integrity • October 29, 2010: Effective July 1, 2011 • June 13, 2011: Effective July 1, 2012 • Foreign Schools • November 1, 2010: Effective July 1, 2011

  20. Program Integrity Final Regulations • Holding Programs Accountable for Preparing Students for Gainful Employment: • Graduation Rate and Job Placement Disclosures • Approval of Additional Programs • Protecting consumers from misleading or overly aggressive recruiting practices, and clarifying state oversight responsibilities: • Misrepresentation • Incentive Compensation • State Authorization

  21. Program Integrity Final Regulations • Ensuring that only eligible students receive federal funds: • High School Diploma • College Credits • Ability To Benefit (ATB) • Satisfactory Academic Progress • Verification • Clarifying the courses that are eligible for federal aid, and the amount of aid that is appropriate: • Written Arrangement • Retaking Coursework • Determining When a Student Has Withdrawn • Disbursing Federal Student Aid Fund • Credit Hour

  22. Regulatory Activity • Negotiated Rulemaking 2011-12 • What we were thinking? • “Naturally readable” Federal Student Loan regulations • Total and permanent disability student loan discharge • Hearings in Tacoma, Chicago & Charleston • Public comment received and under review • Announcement of one or more negotiating committees with tentative agenda forthcoming

  23. Gainful Employment

  24. HEA Requirement • An educational program is Title IV eligible only if the program: • If offered by a public or non-profit institution, leads to a degree; or • If offered by any institution “leads to gainful employment in a recognized occupation”. • These programs are referred to as a “Gainful Employment” or “GE” Programs.

  25. HEA Requirement • Proprietary institutions • All programs except: • Programs leading to a baccalaureate degree in liberal arts offered since January 2009 that has been regionally accredited since October 2007. • Preparatory non-certificate coursework necessary for enrollment in an eligible program.

  26. HEA Requirement • Public institutions and not-for-profit institutions • All programs, except for: • Programs that lead to a degree; • Programs of at least two years in length that are fully transferable to a bachelor’s degree program; and • Preparatory non-certificate coursework necessary for enrollment in an eligible program.

  27. The Law - HEA HEA Requirement GE Programs include - • Teacher certification programs leading to a certificate awarded by the institution but not to teacher training programs that do not lead to a certificate. • ESL programs leading to a certificate or, if a proprietary institution, a degree.

  28. The Regulations • Two sets of Final Rules published on October 29, 2010, with effective date of July 1, 2011- • Program Integrity (included Gainful Employment Reporting and Disclosures) • Gainful Employment – New Programs • Final Rules on metrics to define gainful employment published on June 13, 2011, with effective date of July 1, 2012 or later.

  29. Disclosures • For each GE Program, institution must provide prospective students with specific information (Effective July 1, 2011) • Institutional disclosures to provide information to help students choose among GE programs.

  30. Disclosure Form • When available, institutions will be required to use a disclosure form provided by the Department. • The form was not available by July 1, 2011. • Institutions must comply with these disclosure requirements independently until form is available.

  31. Gainful Employment Reporting • By October 1, 2011 institutions must report information on students who were enrolled in a GE program for the 2006-07 through the 2010-11 award years. • Information includes: • Student and program identifying information; • Loan amounts; • Enrollment information; and • Tuition and Fees (optional).

  32. Adding a New GE Program • Must notify ED at least 90 days before the first day of class. • If the first day of class is on or after July 1, 2011 and before October 1, 2011, notification was due by July 1, 2011 • If the first day of class is on or after October 1, 2011, institutions must provide notification to the Department at least 90 days prior to the first day of class.

  33. Notification Required • Notice of Intent to Offer an Educational Program must describe: • How the institution determined the need for the program? • How the program was designed to meet market needs? • Any wage analysis conducted.

  34. What do 90,000 comments look like? GAINFUL EMPLOYMENT METRICS

  35. Final Rule 35 • Final Rule published on June 13, 2011 – • Defines “gainful employment” to be when a substantial number of the GE Program’s students – • Are repaying their Title IV loans – • Repayment Rate • Have a reasonable debt burden – • Debt to Earnings Ratio. • Informational rates will be issued in 2012 • First official rates will be issued in 2013

  36. Two Metrics 36 • Repayment Rate – • The percentage of loans that the GE Program’s former students are repaying (weighted for loan balance). • Debt to Earnings Ratio – • For the GE Program’s completers, the average educational loan annual repayment amount as a proportion of the average borrowers’ income.

  37. Program Improvement Final RuleImpacts • Failing programs do not lose eligibility immediately. • Standards help programs raise performance.

  38. Meeting President Obama’s 2020 College Completion Goal

  39. Percentage of Adults Age 25-34 with Postsecondary Education (Associate Degree of Higher in U.S. per 2008 Current Population Survey, U.S. Census Bureau)

  40. Education Requirements for Jobs, 2018 Georgetown University, Center on Education and the Workforce, 2010 p. 14 http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf

  41. Education for a Vibrant Democratic Society • Informed, effective participation in democratic life. • Capacity to solve the most pressing problems of our time. • Ability to work in diverse environments with diverse cultures, religions, ethnic backgrounds • Global perspectives

  42. Strategic Objectives • Access • Close the opportunity gap by improving affordability and increasing access to college and workforce training, especially for adult learners, low-income students, and under-represented minorities. • Quality • Foster institutional quality with accountability and transparency. • Completion • Increase degree and certificate completion and job placement, with special attention to fast growing first generation, under-represented and economically disadvantaged populations.

  43. Challenges to the Completion Agenda Reductions in State funding

  44. Challenges - Affordability

  45. Achieving the 2020College Completion Goal • Increase the U.S. College Degree Attainment Rate from 40 to 60% • 10 million additional Americans ages 25-34 with an associate or baccalaureate degree (includes 8 million beyond projected growth) • 3.7 million more high school graduates will become college graduates • 6.3 million adult learners will become college graduates Note: The attainment rate reflects the number of individuals in the population who have attained the degree or diploma. This differs from the graduation/completion rate, which measures the number of individuals within a cohort who graduate or complete their program within a certain amount of time.

  46. Data Collection Practices to Support College Completion State Outreach (SHEEOs, National Governors Association) Internal Program Alignment Inter-Agency College Completion Champions Institution Outreach and Support Public Communications College Completion Task Force President’s Goal: First in the World!

  47. Initiatives Launched / Ongoing • College Completion Tool Kit for States • Data Dashboard for ED Website • Request for Information (RFI)

  48. Tool Kit Action Steps • Set Goals; Develop an Action Plan • Embrace Performance-Based Funding • Align High School standards with College Entrance Standards • Make it Easier for Students to Transfer • Use Data to Drive Decision Making • Accelerate Learning and Reduce Costs • Target Adults With Some College

  49. Momentum Forward • Data Driven/Research-Based Best Practices • Forum of Top Researchers • Tool Kit for Higher Education • State and Regional Summits/Forums • External Stakeholders • Map of National Strategies • Game Changer

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