Education is the foundation for opportunity. That was the message
delivered by President Obama in his State of the Union address as he
focused on economic recovery and prosperity for the middle class. AASCU
strongly endorses this message.
The president called for making education more affordable for
middle class families through an extension of the American Opportunity
Tax Credit, a $10,000 tax credit that can be used over the first four
years of postsecondary education.
He also proposed reducing the burden of payments on an
individual borrower who completes college by strengthening the existing
Income Based Repayment (IBR) program that allows eligible borrowers to
put no more than 15 percent of their income toward paying off their
student loans. The president called for reducing this number to 10
percent. The current program also allows borrowers loan debt to be
forgiven if they are still making payments after 25 years. The president’s plan would reduce this to 20 years.
At a time when difficult decisions must be made about federal
spending, we applaud the president for increasing his financial
commitment to education. AASCU has learned that President Obama is
proposing a 6 percent increase in education spending in fiscal year
2011. During a briefing with administration officials, AASCU also
learned that the president wants to fund the Pell Grant program through
mandatory spending. By doing so, the Pell Grant program will operate
much like veterans benefits or Social Security benefits. In essence, if
students are eligible for the money, they will receive the funds and
will not have to worry about Congress providing annual funding. Both of
these proposals show the president’s commitment to students and are
excellent steps toward meeting his goal of increasing the number of
college graduates in the next 10 years.
While AASCU is primarily focused on higher education issues,
the association has a vested interest in the president’s proposed K-12
education reforms. President Obama called for aggressive reform in
elementary and secondary education modeled after the Race to the Top
grant program, a national education reform competition that is currently
underway. The Race to the Top program calls for ensuring that highly
effective teachers teach all students and that schools are managed by
effective leaders. This will require a re-examination of traditional
teacher preparation methods. Members of AASCU award approximately 50
percent of the bachelor’s degrees in education (according to the latest
data), and many of our institutions have undertaken exemplary and
innovative work in teacher education. But we recognize there is room for
improvement and our institutions can be key partners in the reform
efforts required to achieve success.
The president also noted his concern about college costs—a
message not only for colleges and universities but also for governors
and state legislators. AASCU has begun to address this issue through a
2008 cost containment study in partnership with SunGard Higher
Education. That study resulted in six recommendations for public
colleges and universities in realizing operational cost savings on
campuses.
AASCU applauds the education agenda the president laid out in
his address and we are eager to work with the administration and
Congress to address those proposals that will increase student access to
higher education which in turn will support our nation’s economic
prosperity.