0:00:00.645,0:00:02.328 Dr. Smith: Committee, thank you for the opportunity 0:00:02.328,0:00:05.761 to testify today on the important topic of improving college affordability. 0:00:05.761,0:00:07.495 As you heard, my name is Zakiya Smith 0:00:07.495,0:00:10.561 and I work on finance and federal policy issues at Lumina Foundation, 0:00:10.561,0:00:12.911 the nation's largest foundation focused specifically 0:00:12.911,0:00:16.995 on increasing students' access to and success in postsecondary education. 0:00:16.995,0:00:20.829 As someone whose grandmother attended college as a nontraditional student, 0:00:20.829,0:00:23.062 in the '50s in South Carolina, 0:00:23.062,0:00:27.276 before there were integrated schools or even a Higher Education Act to consider, 0:00:27.276,0:00:30.725 I know both the transformative power of higher education 0:00:30.725,0:00:34.411 and the pains that come from lack of equity within the system, 0:00:34.411,0:00:37.178 for students of color and for low income students. 0:00:37.178,0:00:38.795 And I know from working with students 0:00:38.795,0:00:41.693 as a college counselor in a federally funded gear up program 0:00:41.693,0:00:44.095 that when talking to students directly, 0:00:44.095,0:00:46.327 their concerns about college are clear. 0:00:46.327,0:00:50.761 They think it's important but they just don't know how they're going to pay for it. 0:00:50.761,0:00:54.528 And, we've talked about this issue at the national level for decades. 0:00:54.528,0:00:57.193 We've tried to create measures of transparency, 0:00:57.193,0:00:59.310 which I've very vocally supported, 0:00:59.310,0:01:02.060 with hopes that better information could create market pressure 0:01:02.060,0:01:04.961 and direct students to more affordable options. 0:01:04.961,0:01:09.075 Unfortunately, those efforts alone are not enough. 0:01:09.075,0:01:11.493 Today's students have responsibilities and commitments 0:01:11.493,0:01:13.959 that extend far beyond the classroom. 0:01:13.959,0:01:16.843 Students of color in particular are more likely to be balancing 0:01:16.843,0:01:20.726 work and the responsibilities of parenting with going to college, 0:01:20.726,0:01:25.777 as over 40% of Black and Native American students are also parents. 0:01:25.777,0:01:28.425 And contrary to popular imagination, 0:01:28.425,0:01:32.210 students today actually have to work far more than past generations did 0:01:32.210,0:01:33.843 in order to pay for college. 0:01:33.843,0:01:37.659 In 1971, students could cover tuition at public colleges 0:01:37.659,0:01:41.060 by working about 10 hours a week throughout the year. 0:01:41.060,0:01:44.859 Students today would have to work about a 60 hour work week 0:01:44.859,0:01:48.993 in order to cover the full cost of attendance at a public college in state. 0:01:48.993,0:01:52.257 So, these affordability concerns aren't just in their heads. 0:01:52.257,0:01:56.309 The challenge of paying for college today is greater than it was in the past. 0:01:56.309,0:02:00.792 Some might argue that expenses like rent and food aren't really costs of college 0:02:00.792,0:02:04.258 but general costs of living that every adult must face. 0:02:04.258,0:02:07.042 But very few people would argue with the notion 0:02:07.042,0:02:10.425 that the traditional student, going to college straight from high school, 0:02:10.425,0:02:12.842 living on campus, deserves to be able 0:02:12.842,0:02:15.542 to use their financial aid to pay for room and board. 0:02:15.542,0:02:17.708 Take that same student off campus 0:02:17.708,0:02:19.858 and now they've got to find an apartment. 0:02:19.858,0:02:21.291 Room because rent 0:02:21.291,0:02:25.041 and food, whether purchased on or off campus, is the board. 0:02:25.041,0:02:27.708 Ensuring these non-tuition needs are covered in some way, 0:02:27.708,0:02:30.040 which could include childcare for student parents 0:02:30.040,0:02:32.108 or transportation to and from campus, 0:02:32.108,0:02:34.108 are integral to student success. 0:02:34.108,0:02:35.508 If basic needs aren't met, 0:02:35.508,0:02:37.424 students are less likely to do well in school, 0:02:37.424,0:02:39.624 further impeding completion. 0:02:39.624,0:02:42.990 And as we know, as we think about how to address this concern, 0:02:42.990,0:02:46.857 we must recognize that affordability means different things to different people. 0:02:46.857,0:02:48.574 What's a bargain to one person 0:02:48.574,0:02:51.207 may feel like an unattainable luxury to another. 0:02:51.207,0:02:53.225 For example, a $10,000 degree 0:02:53.225,0:02:56.240 could sound great to a family making $150,000 0:02:56.240,0:03:00.957 yet unimaginable for someone making only $20,000 a year, near the poverty line. 0:03:00.957,0:03:03.690 That's why we can't focus only on the overarching price 0:03:03.690,0:03:05.191 or even the average net price, 0:03:05.191,0:03:07.439 because it alone doesn't capture what's reasonable 0:03:07.439,0:03:09.224 for families at different income levels. 0:03:09.224,0:03:11.256 We've got to start to frame affordability in terms 0:03:11.256,0:03:13.840 that are tailored to individual and family needs 0:03:13.840,0:03:17.040 yet are transparent enough for most people to understand. 0:03:17.040,0:03:19.390 In this vein, Lumina has developed a concept 0:03:19.390,0:03:21.156 called The Affordability Benchmark, 0:03:21.156,0:03:24.640 in consultation with experts from inside and outside of higher education. 0:03:24.640,0:03:27.172 The benchmark is based on some key principles, 0:03:27.172,0:03:30.272 that those with the capacity to save should be encouraged to do so 0:03:30.272,0:03:33.807 with clear guidelines that can be broken down into monthly amounts, 0:03:33.807,0:03:35.923 that students without the capacity to save 0:03:35.923,0:03:37.823 shouldn't be expected to, 0:03:37.823,0:03:40.822 and that no student should have to work more to pay for college 0:03:40.822,0:03:43.389 um-- so, have to which, 0:03:43.389,0:03:46.073 no student should have to work so much to pay for college 0:03:46.073,0:03:49.240 that it impacts their ability to be successful in school. 0:03:49.240,0:03:53.338 Two interconnected recommendations could make this a reality. 0:03:53.338,0:03:57.422 First, a federal-state partnership for affordability, quality, and completion. 0:03:57.422,0:04:00.855 A benchmark approach or any other type of affordability guarantee 0:04:00.855,0:04:03.539 would require a new type of partnership 0:04:03.539,0:04:05.622 between the federal and state governments, 0:04:05.622,0:04:08.272 in which colleges commit to lower prices 0:04:08.272,0:04:11.872 and better outcomes for students over time in order to receive funding. 0:04:11.872,0:04:15.022 States should be encouraged to invest in post secondary education 0:04:15.022,0:04:17.822 in order to better leverage the federal spend. 0:04:17.822,0:04:21.055 And because affordability can't really be conceptually, uh, 0:04:21.055,0:04:22.722 separated from value, 0:04:22.722,0:04:25.106 it would require being more vigilant about quality, 0:04:25.106,0:04:26.906 both to root out fraudulent practices 0:04:26.906,0:04:29.039 and to ensure credentials are meaningful. 0:04:29.039,0:04:32.073 Second, we must strengthen and preserve the Pell grant. 0:04:32.073,0:04:34.173 Pell is the foundation of federal student aid, 0:04:34.173,0:04:37.272 the bedrock on which the federal commitment to students is based. 0:04:37.272,0:04:39.904 Unfortunately, the grant itself has not kept up 0:04:39.904,0:04:41.688 with the rising price of education. 0:04:41.688,0:04:44.054 I urge the committee to consider ways to strengthen Pell 0:04:44.054,0:04:46.489 so that it remains available for future generations 0:04:46.489,0:04:50.104 and to encourage implementation of early awareness and information campaigns, 0:04:50.104,0:04:52.787 to ensure would be students even know it exists. 0:04:52.787,0:04:55.788 I'd be happy to answer uh, any questions about these ideas 0:04:55.788,0:04:58.303 or share in additional detail. Thank you. 0:04:58.303,0:04:59.201 Committee: Thank you, Dr. Smith.