Rep. Howard "Buck" McKeon (R-Calif.), chairman of the House Subcommittee on 21st Century Competitiveness, finally unveiled the long-anticipated Affordability in Higher Education Act (H.R. 3311), a bill designed to stem the rising tide of college tuition costs.
In his floor statement, McKeon said the bill "proposes to empower the consumers of higher education--student and parents--with significant information on higher education, and hold colleges and universities accountable for the dramatic cost increases that are hampering our nation's ability to make the dream of higher education a reality for needy students."
A summary of its contents was released at an October 16 Capitol Hill press event.
The bill as it was actually written varies slightly from the bill that was first proposed several months ago. In the past six months lawmakers and members of the higher education community have hashed out the details of the proposed legislation at numerous hearings and roundtable events.
College and university officials and representatives from higher education groups were particularly concerned with McKeon's proposal to withdraw federal aid from institutions that increase tuition and fees by more than twice the rate of inflation for two years in a row. McKeon's affordability bill slightly softens the proposed measure, by giving institutions longer to get tuition increases under control. However, many of McKeon's original ideas remain.
Opponents to the plan said that such cost control measures could disproportionately harm low-income and minority students, over-penalize lower-cost institutions, and undercut institutions' efforts to increase or maintain academic quality.
Rep. George Miller (D-Calif), the senior Democrat on the House Committee on Education and the Workforce, issued a statement responding to the bill.
"The Republican plan would levy price controls and cut funding to innocent college students in retribution for tuition increases," he said. "That means even more tuition increases for students, and a further weakening of our higher education system. Tuition increases are a serious problem, but to craft a solution to it we must examine misguided federal tax and budget policies and work with the states that are forcing tuition increases because of education cutbacks."
Specifically, the bill would:
- create the "College Affordability Index," a "standard measure" by which students and parents can understand and compare tuition and fee increases. A school's index number is determined by comparing such increases over a three-year period (starting in 2005-2006) to increases in the rate of inflation for that same time period. The resulting information will be made available to families through a user-friendly Department of Education Web site.
- mandate that if a school increases its tuition and fees by more than two times the Consumer Price Index (CPI) over a three-year period (i.e., if it has an Affordability Index score above 2.0), that institution must take specific steps to control costs. Beginning in 2008, schools with an index number of 2.0 or above must submit a document explaining the reasons for the increase. The school must also submit a management plan stating how the school plans to curb increases and an action plan complete with a schedule. After two school years an institution that fails to comply with its own management plan will be placed in "cost affordability alert" status. If they do not comply after one more year, the school will then be declared ineligible for Title IV campus-based aid. Students receiving Pell Grants, and Stafford and Direct loans will not be penalized. Thus the earliest that Title IV sanctions could be invoked would be the 2011 school year.
- exempt low-cost colleges from any possible sanctions. Low-cost institutions--the least costly 25% of institutions in their sector--are already doing a good job at curbing increases and providing an affordable education.
- eliminate barriers for students transferring credits from one institution to another, noting that some students "are prohibited from transferring from one eligible institution to another for reasons considered to be territorial or political...." While the legislation "does NOT mandate what course work must be accepted by any institution," it does state that "the agency or association that accredited the institution must not be the sole reason course work is not accepted for transfer." More than half of all students attend more than one college, and often lose credits in the transfer process, taking longer than they should to graduate.
- create a College Affordability Demonstration Program, which allows participating schools to implement "innovative strategies in their delivery of financial aid and education to improve affordability."
This legislation is one of several bills being offered in an effort to reform and strengthen higher education through reauthorization of the Higher Education Act.
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted October 17, 2003. updated November 19, 2003) on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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