Last Wednesday’s article laid it out — bachelor’s degrees are fast becoming unaffordable even for middle-class students. Certain personal strategies can ease soaring college costs but, by themselves they’re often not enough.
We Americans generally expect our government to address problems affecting individuals and the nation as a whole. Unaffordable bachelor’s degrees are just such a problem. Today, 56% of America’s good jobs — those paying at least $35,000 for 25-44 year olds; $45,000 and up for 45-64 year olds — go to people with bachelor’s degrees.
And now that brains, not brawn, are the key to global competitiveness, the U.S. is falling behind. Examples: 1.3 million fewer Americans were pursuing college degrees in 2017 than in 2010. Meanwhile, we’re 13th in “knowledge workers” while our competitor, China, leads the world in them.
Unfortunately, Congress has done little about college affordability. The Higher Education Act (HEA) that governs federal postsecondary Education programs hasn’t been updated in over a decade.
But now the House Education and Labor Committee has produced the College Affordability Act (HR 4676). It would rewrite much of the HEA, and the House may vote it may before Christmas. Here are some ways HR 4676 would help make college more affordable:
- Create the America’s College Promise Program: States eliminating community college tuition for full-time resident students would receive federal funds equalling about 75% of what they spend to replace that lost tuition. Today, this would result in a full-time community college student living at home paying only $5,700 per academic year at the average community college, just 21% of the average cost of a public 4-year university. Students pursuing associate’s degrees or starting toward bachelors degrees at community colleges would get substantial savings.
- Pell Grants: HR 4676 would increase Federal Pell Grants to up to $6,695 in its first year, and it’d grow Pell awards with inflation thereafter. Today, America’s lowest-income students would be getting $500 (8%) more in Pell Grants. Financially needy middle-class students would benefit, too, because this would free up some state and institutional grant money for them.
- TEACH Grants: TEACH Grants go to students in majors preparing them to be highly-qualified teachers in high-need fields in low-income K-12 schools. HR 4676 would double them from $4,000 to $8,000 per academic year. It’d limit them to juniors and seniors, and extend them to those majoring in early childhood education. HR 4676 would make TEACH Grants and maximum Pell Grants pay 53% of the average academic year’s costs at a public 4-year university today. Eliminating freshmen and sophomores would reduce the number of students whose TEACH Grants are converted to expensive federal loans because, ultimately, the students don’t go on to become teachers.
Do you like or dislike these changes? Exercise your right to express your opinion about them to your member of Congress! Find his or her contact information here.
Next Wednesday we’ll cover how HR 4676 would change the federal student loan programs.
Want more information about financial aid programs that make college more affordable? Contact College Affordability Solutions at (512) 366-5354 or email@example.com to arrange a no-charge consultation.