WEBVTT 99:59:59.999 --> 99:59:59.999 Dr. Smith: Committee, thank you for the opportunity 99:59:59.999 --> 99:59:59.999 to testify today on the important topic of improving college affordability. 99:59:59.999 --> 99:59:59.999 As you heard, my name is Zakiya Smith 99:59:59.999 --> 99:59:59.999 and I work on finance and federal policy issues at Lumina Foundation, 99:59:59.999 --> 99:59:59.999 the nation's largest foundation focused specifically 99:59:59.999 --> 99:59:59.999 on increasing students' access to and success in postsecondary education. 99:59:59.999 --> 99:59:59.999 As someone whose grandmother attended college as a nontraditional student, 99:59:59.999 --> 99:59:59.999 in the '50s in South Carolina, 99:59:59.999 --> 99:59:59.999 before there were integrated schools or even a Higher Education Act to consider, 99:59:59.999 --> 99:59:59.999 I know both the transformative power of higher education 99:59:59.999 --> 99:59:59.999 and the pains that come from lack of equity within the system, 99:59:59.999 --> 99:59:59.999 for students of color and for low income students. 99:59:59.999 --> 99:59:59.999 And I know from working with students 99:59:59.999 --> 99:59:59.999 as a college counselor in a federally funded gear up program 99:59:59.999 --> 99:59:59.999 that when talking to students directly, 99:59:59.999 --> 99:59:59.999 their concerns about college are clear. 99:59:59.999 --> 99:59:59.999 They think it's important but they just don't know how they're going to pay for it. 99:59:59.999 --> 99:59:59.999 And, we've talked about this issue at the national level for decades. 99:59:59.999 --> 99:59:59.999 We've tried to create measures of transparency, 99:59:59.999 --> 99:59:59.999 which I've very vocally supported, 99:59:59.999 --> 99:59:59.999 with hopes that better information could create market pressure 99:59:59.999 --> 99:59:59.999 and direct students to more affordable options. 99:59:59.999 --> 99:59:59.999 Unfortunately, those efforts alone are not enough. 99:59:59.999 --> 99:59:59.999 Today's students have responsibilities and commitments 99:59:59.999 --> 99:59:59.999 that extend far beyond the classroom. 99:59:59.999 --> 99:59:59.999 Students of color in particular are more likely to be balancing 99:59:59.999 --> 99:59:59.999 work and the responsibilities of parenting with going to college, 99:59:59.999 --> 99:59:59.999 as over 40% of Black and Native American students are also parents. 99:59:59.999 --> 99:59:59.999 And contrary to popular imagination, 99:59:59.999 --> 99:59:59.999 students today actually have to work far more than past generations did 99:59:59.999 --> 99:59:59.999 in order to pay for college. 99:59:59.999 --> 99:59:59.999 In 1971, students could cover tuition at public colleges 99:59:59.999 --> 99:59:59.999 by working about 10 hours a week throughout the year. 99:59:59.999 --> 99:59:59.999 Students today would have to work about a 60 hour work week 99:59:59.999 --> 99:59:59.999 in order to cover the full cost of attendance at a public college in state. 99:59:59.999 --> 99:59:59.999 So, these affordability concerns aren't just in their heads. 99:59:59.999 --> 99:59:59.999 The challenge of paying for college today is greater than it was in the past. 99:59:59.999 --> 99:59:59.999 Some might argue that expenses like rent and food aren't really costs of college 99:59:59.999 --> 99:59:59.999 but general costs of living that every adult must face. 99:59:59.999 --> 99:59:59.999 But very few people would argue with the notion 99:59:59.999 --> 99:59:59.999 that the traditional student, going to college straight from high school, 99:59:59.999 --> 99:59:59.999 living on campus, deserves to be able 99:59:59.999 --> 99:59:59.999 to use their financial aid to pay for room and board. 99:59:59.999 --> 99:59:59.999 Take that same student off campus 99:59:59.999 --> 99:59:59.999 and now they've got to find an apartment. 99:59:59.999 --> 99:59:59.999 Room because rent 99:59:59.999 --> 99:59:59.999 and food, whether purchased on or off campus, is the board. 99:59:59.999 --> 99:59:59.999 Ensuring these non-tuition needs are covered in some way, 99:59:59.999 --> 99:59:59.999 which could include childcare for student parents 99:59:59.999 --> 99:59:59.999 or transportation to and from campus, 99:59:59.999 --> 99:59:59.999 are integral to student success. 99:59:59.999 --> 99:59:59.999 If basic needs aren't met, 99:59:59.999 --> 99:59:59.999 students are less likely to do well in school, 99:59:59.999 --> 99:59:59.999 further impeding completion. 99:59:59.999 --> 99:59:59.999 And as we know, as we think about how to address this concern, 99:59:59.999 --> 99:59:59.999 we must recognize that affordability means different things to different people. 99:59:59.999 --> 99:59:59.999 What's a bargain to one person 99:59:59.999 --> 99:59:59.999 may feel like an unattainable luxury to another. 99:59:59.999 --> 99:59:59.999 For example, a $10,000 degree 99:59:59.999 --> 99:59:59.999 could sound great to a family making $150,000 99:59:59.999 --> 99:59:59.999 yet unimaginable for someone making only $20,000 a year, near the poverty line. 99:59:59.999 --> 99:59:59.999 That's why we can't focus only on the overarching price 99:59:59.999 --> 99:59:59.999 or even the average net price, 99:59:59.999 --> 99:59:59.999 because it alone doesn't capture what's reasonable 99:59:59.999 --> 99:59:59.999 for families at different income levels. 99:59:59.999 --> 99:59:59.999 We've got to start to frame affordability in terms 99:59:59.999 --> 99:59:59.999 that are tailored to individual and family needs 99:59:59.999 --> 99:59:59.999 yet are transparent enough for most people to understand. 99:59:59.999 --> 99:59:59.999 In this vein, Lumina has developed a concept 99:59:59.999 --> 99:59:59.999 called The Affordability Benchmark, 99:59:59.999 --> 99:59:59.999 in consultation with experts from inside and outside of higher education. 99:59:59.999 --> 99:59:59.999 The benchmark is based on some key principles, 99:59:59.999 --> 99:59:59.999 that those with the capacity to save should be encouraged to do so 99:59:59.999 --> 99:59:59.999 with clear guidelines that can be broken down into monthly amounts, 99:59:59.999 --> 99:59:59.999 that students without the capacity to save 99:59:59.999 --> 99:59:59.999 shouldn't be expected to, 99:59:59.999 --> 99:59:59.999 and that no student should have to work more to pay for college 99:59:59.999 --> 99:59:59.999 um-- so, have to which, 99:59:59.999 --> 99:59:59.999 no student should have to work so much to pay for college 99:59:59.999 --> 99:59:59.999 that it impacts their ability to be successful in school. 99:59:59.999 --> 99:59:59.999 Two interconnected recommendations could make this a reality. 99:59:59.999 --> 99:59:59.999 First, a federal-state partnership for affordability, quality, and completion. 99:59:59.999 --> 99:59:59.999 A benchmark approach or any other type of affordability guarantee 99:59:59.999 --> 99:59:59.999 would require a new type of partnership 99:59:59.999 --> 99:59:59.999 between the federal and state governments, 99:59:59.999 --> 99:59:59.999 in which colleges commit to lower prices 99:59:59.999 --> 99:59:59.999 and better outcomes for students over time in order to receive funding. 99:59:59.999 --> 99:59:59.999 States should be encouraged to invest in post secondary education 99:59:59.999 --> 99:59:59.999 in order to better leverage the federal spend. 99:59:59.999 --> 99:59:59.999 And because affordability can't really be conceptually, uh, 99:59:59.999 --> 99:59:59.999 separated from value, 99:59:59.999 --> 99:59:59.999 it would require being more vigilant about quality, 99:59:59.999 --> 99:59:59.999 both to root out fraudulent practices 99:59:59.999 --> 99:59:59.999 and to ensure credentials are meaningful. 99:59:59.999 --> 99:59:59.999 Second, we must strengthen and preserve the Pell grant. 99:59:59.999 --> 99:59:59.999 Pell is the foundation of federal student aid, 99:59:59.999 --> 99:59:59.999 the bedrock on which the federal commitment to students is based. 99:59:59.999 --> 99:59:59.999 Unfortunately, the grant itself has not kept up 99:59:59.999 --> 99:59:59.999 with the rising price of education. 99:59:59.999 --> 99:59:59.999 I urge the committee to consider ways to strengthen Pell 99:59:59.999 --> 99:59:59.999 so that it remains available for future generations 99:59:59.999 --> 99:59:59.999 and to encourage implementation of early awareness and information campaigns, 99:59:59.999 --> 99:59:59.999 to ensure would be students even know it exists. 99:59:59.999 --> 99:59:59.999 I'd be happy to answer uh, any questions about these ideas 99:59:59.999 --> 99:59:59.999 or share in additional details. Thank you. 99:59:59.999 --> 99:59:59.999 Committee: Thank you, Dr. Smith.