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This document discusses the proposal for free higher education at public colleges and universities in the United States. It argues that rising tuition costs and the current structure of financial aid are limiting access to higher education for those who need it most and benefiting wealthy families instead. The proposal is for the federal government to pay tuition and fees for all students enrolled in public two- and four-year institutions, similar to the GI Bill after World War II. Supporters believe this would increase access to higher education as a right and reverse current trends that are exacerbating inequality.
Исходное описание:
Adolph Reed on a tuition-free higher educaiton . . .
This document discusses the proposal for free higher education at public colleges and universities in the United States. It argues that rising tuition costs and the current structure of financial aid are limiting access to higher education for those who need it most and benefiting wealthy families instead. The proposal is for the federal government to pay tuition and fees for all students enrolled in public two- and four-year institutions, similar to the GI Bill after World War II. Supporters believe this would increase access to higher education as a right and reverse current trends that are exacerbating inequality.
This document discusses the proposal for free higher education at public colleges and universities in the United States. It argues that rising tuition costs and the current structure of financial aid are limiting access to higher education for those who need it most and benefiting wealthy families instead. The proposal is for the federal government to pay tuition and fees for all students enrolled in public two- and four-year institutions, similar to the GI Bill after World War II. Supporters believe this would increase access to higher education as a right and reverse current trends that are exacerbating inequality.
Source: Academe, Vol. 90, No. 4 (Jul. - Aug., 2004), pp. 39-43 Published by: American Association of University Professors Stable URL: http://www.jstor.org/stable/40252653 . Accessed: 30/08/2013 11:42 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . American Association of University Professors is collaborating with JSTOR to digitize, preserve and extend access to Academe. http://www.jstor.org This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions Free Higher Education Once, financial aidwas seen as a way todemocratize universities and colleges. Today's financial aid policies are widening the gap betweeneducational haves andhave-nots. Free tuition will reverse this trend. By Adolph Reed, Jr., and SharonSzymanski crisis of affordability in higher education is intensifying. Illustrations of its resonance abound: from the frequent news articles describing and amplifying the crisis andits sources to legislators' andcandidates' pro- posedresponses. Republicans' responses tend tobe mainly punitive toward institutions; Democrats' pro- posals are more complicated and expensive than they needto be, andless capable of garnering broad support from the American people.1 There is, however, a clear, simple, anddirect way tohave a significantimpact onthis crisis of access. It begins from the assumption that higher educationshouldbe available as a right inour publiccolleges for all applicants whomeetadmissions Adolph Reed Sharon Szymanski Adolph Reedis professor of political science atthe New School University andco-chair of Free Higher Education, a campaign for free tuitionat publiccolleges anduniversities. Sharon Szymanski is aneconomist atthe Labor Institute in New York City. JULY-AUGUST 2004 39 This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions standards regardless of their ability to pay. Tomake it so, the federal government should pay tuitionandfees for all students, part andfull time, whoare enrolledintwo- and four-year public institutions inthe UnitedStates. (Eighty-three percent of undergraduates now attend publicinstitutions.) The AAUP's Collective BargainingCongress has adopted the proposal, as have several individual collective bargaining chapters, state AFL-CIO bodies in Oregon andSouth Carolina, anddozens of other unions, academic organizations, and community and advocacy groups across the country. We believe thatthis proposal, whichis modeled partly onthe post-World War II GI Bill of Rights, is anideawhose time has come again. For mostof the post-World War II era, higher educationwas viewed as the vehicle for closing the gap betweenthe top andthe bottom of the economicladder. Itwas seenas the key to opportunity and upward mobility - part of whatdefinedthe AmericanDream. There was no finer expression, or more effective engine, of this belief thanthe GI Bill, under whichthe federal government offeredmillions of returning veterans full tuitionto college anda living- wage stipend while they were enrolled. The broad, positive impact of this one policy onour society is well recorded. Today, however, higher education shows all the signs of following the disturbing trends thatare fueling economic polarization in society in general. In fact, higher educationis now part of this process of shifting income tothe top. Here's how itworks. Rising tuitionis not just astatistic. Together withthe cur- rentstructure of financial aid, itis furthering the transfer of money to wealthy families andthe financial sector. Specifically, as tuition rises, access to college is limitedtothose whocan afford increasing amounts of interest-bearing loans. As tuition rises, colleges are offering more merit-based aid, whichtends to benefitwealthier families. As tuition rises, students andtheir families are taking on huge loan debt, whichtransfers money tofinancial andcredit-card companies. As tuition rises, more pressure is put on financially strapped states and publiccolleges tofulfill the push to privatize publicservices, includinghigher education. Thus not only is anentire financial sector growing andsoci- ety's mostaffluentmembers personally benefiting from the income shift takingplace in higher education, butconcerns over rising tuitionare also being usedto promote the privatiza- tionof yet another public service - publichigher education. Financial Aidfor the Wealthy Huge increases intuitionandfees inour colleges anduniversi- ties have become page-one news. Like healthcare costs, the price of a college educationis skyrocketing. According toTrends in College Pricing2003, publishedby the College Board, tuition andfees at public two- and four-year colleges anduniversities increased14 percentcompared withthe previous year. When room andboardandother expenses are takeninto account, pub- licinstitutions cost $20,879, on average, for anout-of-state stu- dentand $13,833 for anin-state student. Private colleges and universities costan average of $29,500. The tuitionincrease at four-year colleges was the largest in twenty-five years. The College Board reports inTrends inStudent Aid2003 and Trends in College Pricing2003, however, thateven though tuitionandfees are high, moststudents donot pay the "stick- er" prices, because financial aid, totaling $105 billionnation- wide, is provided toalmost60 per- centof undergraduate students. So perhaps the picture isn'tas bleak as it seems. Or is it? The most significantmisconcep- tionis thatfinancial aidmakes college affordable for those whocanleast affordit. In fact, financial aidhas undergone a repackaging thathas hit hardestthe students andfamilies who needit most, andthathas increased the financial burdenfor mostwork- ing families. Today, families with incomes up to $25,000 canbe asked to pay as muchas 71 percent of their earnings tosendasonor daughter to a publicfour-year college; families whose incomes range from $43,000 to $66,000 pay from 17 to19 per- cent. Yetfamilies withincomes over $99,000 pay only 5 to6 percent of their income. Inthe 1970s and 1980s, financial aid helped toincrease access to college for those students who otherwise couldn'taffordit. Over the lastten years, however, ithas takena dramatically different direction. Today, financial aidis climbinghigher up the income ladder. In 1985, accord- ing tothe Higher EducationResearchInstitute atthe University of California, 46 percent of first-year students attending 250 select public and private colleges came from the highest-earningquarter of households. Today, thatshare has jumped toover 55 percent. Financial aid programs are now structuredtoinfluence stu- dents' choice of colleges, rewardacademic accomplishment at the expense of financial need, andreduce the financial burden of higher-income families. These studentaid programs rely increasingly on interest-bearing loans rather thanonneed- based grant aid. A distressing resultis thatmillions of qualified, lower-income students cannotafford college. Moreover, the pressure tooffset high tuitioncosts induces moststudents whodoattend college totake on jobs andto work so many hours thattheir studies suffer. As faculty, we know the corrosive effects this circumstance has onthe integri- ty of teaching and learning. Gradually, normative expectations about reading andother performance requirements of acourse 40 ACADEME This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions canerode toaccommodate the realities of students' work commitments. Many students wind up spreading outtheir undergraduate study over more years than they would prefer andstill grad- uate with huge loandebt. Meanwhile, the holders of loans - Wall Streetandcredit-card companies - are having a field day. Less Aidfor Those MostinNeed Ten years ago, over half of financial aidwas inthe form of grants. Today, loans have surpassedgrants, representing 54 percent of total aid. But today's "grant aid" is notwhatit might seem to imply. The Pell Grant program represents the federal government's greatest commitmentto higher educa- tion. Yetitis paltry. Pell Grants are supposed tobenefitthe most financially strapped students. Butan average Pell Grant is $2,421. Moreover, legislators continue todilute Pell Grants sothat they now cover only 33 percent of the total costof attending an average two-year publiccollege, 25 percent of the costat a four-year publiccollege, andless than10 percent of the costata private four-year school. Rather than strengthening the Pell program, the currentadministrationhas legislation pending thatwill further weakenPell Grants. The new eligi- based aid, whichis alsoconsidered grant aid, is awardedfor academicachievementrather thanneed. Since the 1970s, need-based grants have decreasedfrom 61 percent of all fed- eral studentaidto22 percent. In addition, aHarvard University report foundthatstates setaside 25 percent of their financial aidfor merit-based support in 2001, compared with just 11 percent in1991. Merit-basedaidtends to go tostudents from families with the highest incomes. The College Board reports inTrends in StudentAid2003 thatstudents from families withincomes of $83,000 or more in1999-2000 typically received larger schol- arships from both public and private colleges thandidstudents from families earning less than $31,000. Yet many of the wealthier students wouldhave attended college evenwithout suchaid. Today, according toa jointreport thatthe Institute for Higher Education Policy and Scholarship Americareleased in May 2004, only 48 percent of students from low-income families go to college, compared with77 percent of students from high-income families. All students shouldbe rewardedinsome way for academic performance. Butmerit-basedaidreduces the total amount of need-basedaidavailable, notthe number of students who require financial assistance toattend college. Merit-basedaid is the primary competitive tool that colleges use to"dis- Today, families withincomes up to $25,000 canbe askedto pay as muchas 71 percent of their earnings tosendasonor daughter toa publicfour-year college. bility formulaincreases the amountof money the government says a family has available for college costs. As aresultof this formula change, the Congressional ResearchService, the researcharm of Congress, estimatedthat 85,000 students couldlose their Pell Grants entirely andhundreds of thou- sands will receive less aid. Butthe federal government will save hundreds of millions of dollars, andstudents will be forcedtoseek outmore loans. The administrationhas been trying toreduce the size of maximum Pell Grants. Accordingly, the president's fiscal 2005 budgetproposal asks Congress to keep the maximum atthe same level atwhichitwas the year before. A Senate-approved amendmenttothe administration's proposal calls on Congress toincrease the maximum Pell Grant, withthe caveatthat lawmakers wouldhave tomake cuts inother popular programs notrelatedto higher education. Since the chances of their doing soare slim, the only real purpose of the amendmentis tomake it appear as if the administrationandits allies inCon- gress are grappling with high tuitionand, perhaps more impor- tant, toundercutaDemocraticamendmentto pay for raising the maximum Pell Grant by closing various tax loopholes. More Aidfor the Wealthy The growth of merit-basedaidfurther erodes the total amountof money available for aidbasedonneed. Merit- count" their tuitiontolure certain, usually higher-income, students. Some universities andstates have triedtoaddress increasing economic polarization. The University of NorthCarolinaat Chapel Hill recently announceda plan tocover the full costof educationfor poor students without forcing them totake on loans. The students will have towork instate andfederal work- study programs for tentotwelve hours a week, whichis man- ageable. Itwouldbe amistake, however, to imagine thatstates canshoulder this burdenontheir own. Because of its budget crisis, Georgia, for example, may discontinue its decade-old scholarship program for students whomaintainaB average. Under abill introduced by House Republicans, merit-based aidcouldencroachonneed-basedaidinanevenmore blatant way. The bill proposes awarding Pell Grants basedonaca- demicachievement. Specifically, full-time recipients of Pell Grants instates thathave State Scholars Programs could receive anadditional $1,000 intheir firstandsecond years of college if they have completed a rigorous high school curricu- lum designedpartly by business leaders andif they maintaina 3.0 grade pointaverage. The proposal, like muchof the rhetoric supporting merit-basedaid, purports torewardhard- working students from low-income families; in fact, however, the students whotake the demanding courses are most likely already boundfor college. JULY-AUGUST 2004 41 This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions Withneed-based grant aid deteriorating, mostfamilies mustturnto interest-bearing loans. The AmericanCouncil onEducation reported inits 2003 Status Report onthe Federal EducationLoan Programs thatloans now accountfor 75 per- centof all federal studentaid. Need-based government- subsidized loans, as ashare of total loans, decreasedfrom 33 percent in1998 to28 percent in2003. In contrast, the more expensive, unsubsidized government loans available toall students and parents, regardless of need, have grownby 51 percent. During the Clinton administration, the bankingindustry blockeda congressional initiative to expandgovernment- subsidizeddirectstudentloans andPell Grants by phasing out the federal unsubsidizedloan program, which provides gener- ous subsidies tobanks guaranteedby taxpayer money. Although the amounts of loans are restrictedfor students, par- ents canborrow up tothe total costof education. Withinsufficientfederal loanfunds available, students and their families have toturnto private loans, whichhave sky- rocketed. Nonfederal loans through banks and private lenders amountedto$7.5 billionin2003 and represented a41 per- centincrease just from 2002. Also, students andtheir families rely increasingly on home-equity loans and high-interest-rate credit-card financing. Recentestimates suggest thatas many as loans couldno longer "lock in" fixedinterestrates for thirty years. Rather, the rates would vary from year to year based onmarketconditions. The Congressional ResearchService estimates thatif students cannotbundle their loans atlow fixed rates, they will pay anextra $3,115 to $5,484 in interest. Loanconsolidationis a very big business. Between2001 and 2002, borrowers consolidated$17 billionin loans, twice as muchas the year before. With dropping interest rates, refi- nancing is expected to grow. According tothe July 19, 2002, issue of the Chronicle of Higher Education, the third largest loan consolidator, Collegiate FundingServices, made about$1.7 billioninrefinancedloans in2001. The rationale for doingaway withfixedinterestrates on consolidatedloans is thatthe loan-consolidation program costs the government billions of dollars insubsidies to keep the costs of loans cheaper for borrowers. Supporters of this measure say the money saved by declining to help graduates repay loans couldbe usedto provide more benefits tocurrent andfuture students. This argument makes sense from the profit-makingpoint of view of the studentloan industry. Why nothave the governmentprovide subsidies tothe banks rather thantostudents? Why notincrease the new pool of borrowers, who, in turn, will have to pay higher interest Public colleges, unable to compensate for reducedstate monies and the withdrawal of federal aid, will have noalternative butto privatize and deregulate their tuition. 25 percent of students depend oncreditcards to help finance college costs. The resultis that64 percent of students graduate withaloandebt averaging close to $17,000 - almostdouble the average amountin1992. Benefits for the Financial Sector Deeper loandebtmeans more profits for the financial sector, particularly suppliers of studentloans. Executives of SLM Cor- poration, the giant studentloan company knownas Sallie Mae, have saidthatthe rising costs of educationwill swell its bottom line for some time tocome. Sallie Mae, as a quasi-federal agency, was supposed tomake money available sothat college wouldbe affordable. Butunder the Clinton administration, Sallie Mae became a private corporation, anditis profiting. Withthe loan-basedstructure of federal financial aid, the federal government is effectively guaranteeing Sallie Mae's profits andsuccess - its studentloan portfolio rose 10 percent last year, anditnow holds more than$85 billioninstudent loans for about7 millionborrowers. Its stock has risen400 percent since 2000. SLM Corporationrecently expanded its dominance by acquiring Academic ManagementServices, a loan origination andtuition paymentbusiness, whichwill give Sallie Mae another $1.4 billioninstudentloans. This spring, Republican leaders inthe House reintroduced a2002 proposal whereby students whoseek consolidation rates, permitting banks to wring still higher payments outof debt-ridden graduates? Those whowanttodismantle public services claim thatunless the consolidation program is "checked" (thatis, tiedtoavariable interest rate), the gov- ernment's costwill skyrocket, putting in jeopardy all student- aid programs. They make similar arguments aboutMedicare andSocial Security. Privatization Public colleges anduniversities typically depend onstate revenues for over one-thirdof their finances. Tuitionand fees are increasing, andmost likely will continue to rise, because states cannotaffordtomaintain publiccolleges with- outfederal assistance. The Bushadministrationhas already givenaway any additional federal money that might have been forthcomingby doling outtax breaks tothe affluent and corporations and ratchetingup a huge deficit. And administrationofficials repeatedly have warned college lob- byists andleaders nottocome begging for more student-aid money. Funding for state schools is the largestdiscretionary item in states' budgets andtherefore one of the firstitems to experi- ence cuts during afiscal crisis. Historically, tuitionandfees have risenwhenstate appropriations have decreased. Andthis is exactly whatis happening now. As the federal government 42 ACADEME This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions depletes the publictreasury, cash-starvedstates must pick up the slack. State support for higher educationhas declinedsub- stantially over the past two decades, as states have hadto stretchtheir budgets tomaintain funding for a range of social services - primarily expansions in Medicaid, health care, and unemploymentservices, according toa2003 Brookings Institution report titledState Fiscal Constraints and Higher Education Spending: The Role of Medicaidandthe Business Cycle. As a result, growth instate funding for higher educationactu- ally fell tonear zeroin2003. The Rockefeller Institute on Government reports that states, and higher educationin partic- ular, will continue toface tightbudget constraints for atleast the nextdecade. As states grapple with fallingrevenues, neo- conservatives are demanding that publichigher educationbecome more cost-effective andless depen- denton government subsidies. And sothe seeds of privatization are sown. Trying to appear as if they were responding toa publicoutcry over risingtuition, rather than attempting toseize a ripe momenttosow these seeds of privatizingpubliccolleges, the Republicans recently introduced a bill, the Affordability in Higher Education Act, whichwouldwith- holdmillions of dollars of federal money instudentaidfrom colleges thatraise tuitionmuchfaster than inflation. Atleast24 percent of col- leges wouldbe affectedif the act became law today. Although the most punitive parts of the legislation recently have beenwithdrawn - the withholding of federal student-aid monies - the legislation still proposes tomaintaina"watchlist" of universities and require detailed accounting if they raise tuitionabove a prescribed amount. In addition, House Republican Howard McKeon, the author of the legislation, warnedthatfinancial penalties couldbe reinstated. The potential resultof this type of legislation, given hemor- rhaging state budgets and inadequate financial aid, is twofold: (1) as federal money is withdrawnanddivertedtointerest- bearingloans, fewer andfewer low- andmiddle-income stu- dents will be able toattend publiccolleges, and (2) public col- leges, unable to compensate for reducedstate monies andthe withdrawal of federal aid, will have noalternative butto priva- tize and deregulate their tuition. Only the more affluentstu- dents will be able toafford publiccolleges. Following the neo- conservative's campaign, the government will have removed itself from guaranteeinghigher educationtoall its citizens. The shared publicpriority of higher educationfor all as part of the AmericanDream will be dismantled. As state budget deficits squeeze higher education, states are forcedtoconsider financial changes thatmake their public col- leges resemble private institutions. Public colleges in Virginia are debating whether totake less state money inorder toraise badly neededtuition. A recent study indicates thatColorado couldrunoutof money for higher education by 2009. In response, state lawmakers passedlegislation totake mostof the state aidthat goes directly to publiccolleges and give it directly to students, including those at private institutions. South Carolina's Republicangovernor suggests that publiccolleges be allowedtobecome private and get outfrom under all state regulations. Washington State endorseda plan that would, for the first time, allow private colleges to compete with public institutions for state money for students enrolledin high- demand programs like nursing and special education. Recognizing the trendfor all publiccolleges anduniversi- ties, the president of the University of Colorado system told the Chronicle of Higher Educationin 2004, "We are facedwiththe endto publichigher educationin Colorado." Free Higher Education This state of affairs is unacceptable andanaffrontto any reasonable notionof afair anddemocraticsoci- ety. We believe thatthe appropriate response is to articulate, andmobilize in supportof, aclear visionof how a fair and justsociety should provide access to higher education. We pro- pose thatall academically qualified students whodesire aneducation shouldbe able to get one - without constraint by costor the needto amass crippling debt. We believe this proposal crystallizes a clear, simple vision. Anditis notoutside the polit- ical mainstream. MostAmericans believe thatacol- lege educationhas become as important as a high school diplo- mausedtobe in attaining the AmericanDream. Unlike other neededsocial programs, suchas national health care, free high- er educationdoes not require massive amounts of money or the creationof a huge new bureaucracy. Currenttuitionand fees for all students now enrolled - full and part time - in public two- and four-year colleges anduniversities total alittle more than$30 billion. Evenif expanded access doubled enrollments, only $60 billionof publicmoney wouldbe required. This expense could easily be covered by closing some corporate tax loopholes, eliminating some tax cuts tothe very wealthy, or taking aslice from the $400 billiondefense budget. Makingpublichigher educationfree is not only the right, rational, and justthing todo. Itis alsoa goal thatcanbe won inthe foreseeable future. We urge AAUP members tocontact the Collective BargainingCongress or tovisitthe campaign's Web site - www.freehighered.org - for further information aboutthe campaign andhow to get involved. & Note 1 . For examples of the proposals, see Mark Dudzicand AdolphReed, Jr., "Free Higher Ed!" The Nation, February 23, 2004. JULY-AUGUST 2004 43 This content downloaded from 130.212.18.200 on Fri, 30 Aug 2013 11:42:50 AM All use subject to JSTOR Terms and Conditions