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 detail. Thank you.

Committee:
Thank you, Dr. Smith.