Challenging Times and the Changing Higher Education Landscape

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Challenging Times and the Changing Higher
Education Landscape
NACAC 2009 Legislative Conference
Anne Hickey, Associate Director, Government
Relations March 9, 2009 Washington, DC
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Economic Challenges

• Unemployment up to 8.1 (12.5 million).
• 12.6 trillion in wealth lost in 2008,
  consumption down by at least 600 billion.

• Household debt in delinquency or default
  approaching 1 trillion.
• GDP fell 6.2 during last quarter

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Federal Help for Students Families

• College Cost Reduction and Affordability Act
• Ensuring Continued Access to Student Loans Act
• New G.I. Bill
• Higher Education Opportunity Act
• The American Recovery and Reinvestment Act

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American Recovery and Reinvestment Act

• Helping Students and Families
• Research and Infrastructure Funding
• Job Training
• State Stabilization Fund

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American Recovery and Reinvestment Act

• Recovery Program Plans by May 1st for each
  program in the law
• Transparency www.recovery.gov
• Weekly and monthly financial reporting

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Helping Students and Families

• Increase Pell Grants
• 5,350 in 2009
• 5,550 in 2010
• 7 million recipients

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Helping Students and Families

• Increase Work-Study
• 200 million
• FY2009 980 million
• Implementation challenge

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Helping Students and Families

• American Opportunity Tax Credit
• Temporarily replaces Hope Tax Credit with
  expanded 2,500 credit
• Covers tuition fees, books, and course
  materials
• Partially refundable

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Research and Infrastructure Funding

• National Institutes of Health 10.4 billion
• 8.2 billion for research
• 1.3 billion for extramural facilities
• 9.5 billion to colleges and universities
• 500 million for NIH campus
• 400 million for comparative effectiveness
  research

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Research and Infrastructure Funding

• National Science Foundation (NSF) -- 3 billion
• 2 billion research grants
• 900 million for infrastructure
• 100 million for education

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Job Training

• Workforce Investment Act 3.95 billion
• Formula Grants, 2.9 billion
• Competitive Grants, 750 million
• New contract initiative

• Trade Adjustment Assistance Act

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State Stabilization Fund

• 53.6 billion total
• 48.3 billion
• 39.5 billion to education (K-12 and public
  colleges)
• 8.8 billion to Governors

• 5 billion K-12 incentive grants

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State Stabilization Fund

• Implementation
• State application
• Assurances
• Maintenance of Effort
• Waiver by Secretary

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Obama FY2010 Budget Proposal

• Makes Pell an Entitlement
• maximum grant indexed to inflation
• Eliminates FFELP
• Restructures the Perkins Loan Program
• Makes AOTC Permanent

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Looking ahead . . .

• Different approach
• Lots of money
• Increased reporting requirements
• Government grows bigger

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• Q A
• For additional information, please visit
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