Reauthorizing the Higher Education Act: Improving College Affordability

Dr. Smith: Committee, thank you for the opportunity

to testify today on the important topic of improving college affordability.

As you heard, my name is Zakiya Smith

and I work on finance and federal policy issues at Lumina Foundation,

the nation's largest foundation focused specifically

on increasing students' access to and success in postsecondary education.

As someone whose grandmother attended college as a nontraditional student,

in the '50s in South Carolina,

before there were integrated schools or even a Higher Education Act to consider,

I know both the transformative power of higher education

and the pains that come from lack of equity within the system,

for students of color and for low income students.

And I know from working with students

as a college counselor in a federally funded gear up program

that when talking to students directly,

their concerns about college are clear.

They think it's important but they just don't know how they're going to pay for it.

And, we've talked about this issue at the national level for decades.

We've tried to create measures of transparency,

which I've very vocally supported,

with hopes that better information could create market pressure

and direct students to more affordable options.

Unfortunately, those efforts alone are not enough.

Today's students have responsibilities and commitments

that extend far beyond the classroom.

Students of color in particular are more likely to be balancing

work and the responsibilities of parenting with going to college,

as over 40% of Black and Native American students are also parents.

And contrary to popular imagination,

students today actually have to work far more than past generations did

in order to pay for college.

In 1971, students could cover tuition at public colleges

by working about 10 hours a week throughout the year.

Students today would have to work about a 60 hour work week

in order to cover the full cost of attendance at a public college in state.

So, these affordability concerns aren't just in their heads.

The challenge of paying for college today is greater than it was in the past.

Some might argue that expenses like rent and food aren't really costs of college

but general costs of living that every adult must face.

But very few people would argue with the notion

that the traditional student, going to college straight from high school,

living on campus, deserves to be able

to use their financial aid to pay for room and board.

Take that same student off campus

and now they've got to find an apartment.

Room because rent

and food, whether purchased on or off campus, is the board.

Ensuring these non-tuition needs are covered in some way,

which could include childcare for student parents

or transportation to and from campus,

are integral to student success.

If basic needs aren't met,

students are less likely to do well in school,

further impeding completion.

And as we know, as we think about how to address this concern,

we must recognize that affordability means different things to different people.

What's a bargain to one person

may feel like an unattainable luxury to another.

For example, a $10,000 degree

could sound great to a family making $150,000

yet unimaginable for someone making only $20,000 a year, near the poverty line.

That's why we can't focus only on the overarching price

or even the average net price,

because it alone doesn't capture what's reasonable

for families at different income levels.

We've got to start to frame affordability in terms

that are tailored to individual and family needs

yet are transparent enough for most people to understand.

In this vein, Lumina has developed a concept

called The Affordability Benchmark,

in consultation with experts from inside and outside of higher education.

The benchmark is based on some key principles,

that those with the capacity to save should be encouraged to do so

with clear guidelines that can be broken down into monthly amounts,

that students without the capacity to save

shouldn't be expected to,

and that no student should have to work more to pay for college

um-- so, have to which,

no student should have to work so much to pay for college

that it impacts their ability to be successful in school.

Two interconnected recommendations could make this a reality.

First, a federal-state partnership for affordability, quality, and completion.

A benchmark approach or any other type of affordability guarantee

would require a new type of partnership

between the federal and state governments,

in which colleges commit to lower prices

and better outcomes for students over time in order to receive funding.

States should be encouraged to invest in post secondary education

in order to better leverage the federal spend.

And because affordability can't really be conceptually, uh,

separated from value,

it would require being more vigilant about quality,

both to root out fraudulent practices

and to ensure credentials are meaningful.

Second, we must strengthen and preserve the Pell grant.

Pell is the foundation of federal student aid,

the bedrock on which the federal commitment to students is based.

Unfortunately, the grant itself has not kept up

with the rising price of education.

I urge the committee to consider ways to strengthen Pell

so that it remains available for future generations

and to encourage implementation of early awareness and information campaigns,

to ensure would be students even know it exists.

I'd be happy to answer uh, any questions about these ideas

or share in additional details. Thank you.

Committee: Thank you, Dr. Smith.