Education Week - March 5, 2014 - 14

States Eye Plans to Lower Cost Barrier to College
CONTINUED FROM PAGE 1
pay-it-forward approach-are getting
a mixed reception. Experts say states
have a history of making promises
that can be tough to sustain.
"What catches states is that it
sounds good, but once the population
changes and the cost structure
remains, they are faced with a really
big bill," said Matt Gianneschi, the
vice president of policy and programs
at the Denver-based Education Commission
of the States.
But state leaders are feeling pres-
sure to respond to frustrated consumers
who fear that college is financially
out of reach at the same time that the
college-for-all push continues.
"States are recognizing they can't
just put money into the same old
system. To deal with the volume of
students and the rising costs, they
have to find ways to innovate," said
Mr. Gianneschi. "To graduate those
who don't see themselves as college
material, you have to put new ideas
on the table."
Recent data indicate a large increase
in college costs. Over the past
five years, the average published
cost of tuition and fees has climbed
by 27 percent for public four-year
institutions (now at $8,893), and
29 percent at public two-year colleges
(now at $3,264), according to
the College Board. Those figures are
adjusted for inflation.
However, last year marked one of
the smallest one-year increases in
those costs across both sectors in recent
history, the data show.
Plenty of states have supported initiatives,
often at great expense, that
help make college education either
free or low-cost for some students.
One prominent strategy is merit- or
need-based programs, such as the
Georgia HOPE Scholarships and the
Michigan Promise.
The popularity of such programs,
however, has sometimes outpaced
financing. Michigan ended its "promise"
program in 2009, and Georgia in
2011 adjusted eligibility and funding
levels to cut costs. That said, Georgia
Gov. Nathan Deal, a Republican, just
proposed a merit-based grant program
covering full tuition at technical
colleges.
Tennessee Promise
In his Feb. 3 State of the State address
to Tennessee lawmakers, Gov.
Haslam, a Republican, announced
his plan for a free two-year education
at a community college or a college of
applied technology.
"Through the Tennessee Promise,
we are fighting the rising cost of
higher education, and we are raising
our expectations as a state," he said.
"We are committed to making a clear
statement to families that education
beyond high school is a priority."
The governor's proposal, as with
the one being considered in Missis-
sippi, is designed as a "last dollar"
program, in which tuition and fees
are paid for recent high school graduates
after deducting all other state
and federal scholarships.
The program would also call for
the deployment of volunteers to
mentor students during the last semester
in high school and the first
semester in college. That feature
would help the program go beyond
expanding college access to improving
retention, said Randy Boyd, a
special adviser to the governor for
higher education. Since 2008, Mr.
Boyd has worked with tnAchieves,
a nonprofit program that operates
in 27 counties and was the template
for the Tennessee Promise.
An evaluation of the local program
issued last year by the Center for
Business and Economic Research at
the University of Tennessee found
that students in tnAchieves were 20
percent more likely to pursue postsecondary
education than a similar
set of those who did not participate.
State officials estimate the Ten-
nessee Promise would help 25,000
students a year at a cost of about
$34 million. Gov. Haslam has proposed
that the program be financed
through an endowment set up with a
reserve from lottery funds.
But he's encountered criticism, in-
cluding from U.S. Rep. Steve Cohen,
D-Tenn., who said in a statement
that he would rather see lottery proceeds
pay a larger amount of tuition
under the state's HOPE scholarships,
which offer merit-based aid at eligible
two- and four-year institutions. Rep.
Cohen argues that the governor's
plan, which also would reduce the
size of HOPE scholarship awards at
four-year colleges for freshmen and
sophomores, would create a disincentive
for students to attend the state's
"best" universities.
One complaint with providing free
community college for all is that it
would end up covering families that
may not need the assistance.
A better use of state dollars is to
expand targeted scholarships for
low-income students and to provide
adequate funding of public colleges
and universities to keep tuition down,
argues Sandy Baum, a senior fellow
at the Urban Institute in Washington
and a research professor at George
Washington University.
Mr. Boyd, the governor's adviser,
defended the plan, saying it would
be a big help to some middle-class
families. "Those above the [income]
threshold for [federal] Pell Grants
still have a financial challenge," he
said. "Just because your family makes
$60,000 doesn't mean you have the financial
means to go to college."
State Rep. Gerald McCormick, the
Republican leader in the Tennessee
House, said the proposal has bipartisan
support and that he expects it
will be approved, possibly this month,
without significant changes.
Pay It Forward
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The plan approved last month by
the Mississippi House is modeled
after a tuition-guarantee program
now operating at six of the state's
community colleges and supported
with a combination of private and
public dollars.
Noell Vanasselberg, a counselor at
rural Tremont High School in northeast
Mississippi, said she tells 9th
graders about the tuition-guarantee
program at nearby Itawamba Community
College, which has been
available for the past four years.
Hearing that they can get two
years of free tuition is an eye-opener
for many, she said.
"It gives them kind of a hope or
motivation," she said, helping to keep
them from dropping out and "see
past" graduation to further educational
opportunity.
Each year, about 25 of the small
school's 35 graduates go on to community
college with the help of the
program, she estimated.
The Mississippi measure now goes
to the state Senate for consideration.
About 6,800 students are projected to
be eligible for the program in the first
year, at a cost of about $3 million. The
second-year price tag is $4.5 million
in the second.
Another approach to bringing college
within reach of more students is
the pay-it-forward bills cropping up
in states.
Under that model, students go to
college tuition-free, but sign a binding
contract to pay a percentage of
their adjusted gross income (about
1.5 percent at community colleges
and 4 percent at four-year institutions)
for 20 years after leaving
school. A trust fund would be established
to enable the next generation
to attend, similar to the concept of
Social Security.
"Pay-it-forward is not a panacea, but
an innovative tool to open up higher
education to middle- and low-income
students," said John R. Burbank, the
executive director of the Economic Opportunity
Institute in Seattle, which
has championed the idea.
Last July, state lawmakers in Oregon
passed a college-affordability bill
that mandated a study of the feasibility
of a pay-it-forward pilot.
"Pay-it-forward is seen as a potentially
creative approach to help
finance higher education in a fairer
way than conventional loans, which
place such a burden on students, particularly
those not in lucrative professions,"
said Ben E. Cannon, the executive
director of the Oregon Higher
Education Coordinating Commission,
which is conducting the review.
Some policy experts say it will be
hard for the pay-it-forward model to
catch on because of the initial cost.
"It would have to have a very, very
large investment of funds upfront,"
said Michael Dannenberg, the director
of higher education policy with
the Education Trust, a Washingtonbased
research and advocacy group.
"I suspect that's part of the reason
you are seeing a lot of calls for study
rather than actual implementation."
The legislature in Washington
state came up with a simple way to
address college affordability last year:
freeze tuition.
Lawmakers there also have explored
the pay-it-forward approach,
though no measure has passed a full
chamber.
Competency-Based Program
On another front, the Texas Affordable
Baccalaureate Degree Program
began in January with a "soft launch"
that included just 12 students at
South Texas College and Texas A&M
University-Commerce, said Van L.
Davis, a director at the Texas Higher
Education Coordinating Board. The
goal is to have enrollment of 250 students
by year's end.
The new approach-spurred by
Gov. Perry, a Republican-has students
progressing at their own pace
in six seven-week terms offered yearround.
Faculty members helped design
the curriculum for the program,
offered largely online. Students must
master each competency with 80 percent
passing grades to move on in the
program.
The cost of a degree for brand-new
students is expected to be $13,000 to
$15,000.
Ultimately, observers say, it's hard
to predict which flavors of state initiatives
will prove successful and
gain more widespread support.
"Major policy changes incubate
over a period of time," said Mr. Dannenberg
of the Education Trust.
"They are first seen at the local level,
then the state level, and then there is
a base that coalesces around an idea."
Special coverage on the alignment
between K-12 schools and postsecondary
education is supported in part by a
grant from the Lumina Foundation,
at www.luminafoundation.org.
Education Week retains sole editorial
control over the content of this coverage.
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Education Week - March 5, 2014

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