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Morrill Land Grant Act
Offering federal land to states for the purpose of Higher Education The first national initiative in higher education (supported by the federal government) (Picture: Justin Smith Morrill)
Created to provide greater educational opportunity, offer education in disciplines that were needed at the time and was considered a wise way of distributing federal land -
World War II
Government used colleges and universities for research to further wartime objectives As a result of this research, came the atomic bomb Because of this partnership, the value of higher eduction was seen in the public sphere -
Servicemen's Readjustment Act- "G.I. Bill"
Offered financial support for veterans as an incenctive to enroll Considered the first federal direct-support to individual students Going against popular predictions, veterans were seen as successful members of the student body This act is seen by many as the most successful social interventions of all time Contributed to slowing massive unemployment of returning soldiers -
Truman Commission Report (Higher Education for American Democracy)
Created in response to the large number of soldiers participating in the GI Bill and later served as a report looking past the GI Bill Was considered a feasibility study for the increase of 2-year colleges Called for doubling enrollment over the next decade Recommended additional federal scholarships for public and private school students The commission also notes that the nation was underinvesting in higher education as a whole -
GI Bill Slows
Enrollment tappered off Slight decline between 1950 and 1955 (2.659 million to 2.597 million) -
Beginning of the Vietnam War
Causing students to use college campuses as places of protest -
National Defense Education Act
Inagurating modern era of federal financial support Originally created to increase the number of scientists (to compete with the launch of Sputnik) Established a federal loan system for students Advanced scientific research, doctoral fellowships, foreign languages and area studies -
Increase in the number of students
Increase led to the building of new colleges and universities 1959-60 2,004 total 1969-70 2,525 total The California Master Plan was created
3 Tier system
University of California System
Cal-State System
Community College System Similar design created in New York (SUNY and CUNY) The need for more PhDs and staff with advanced degrees led to an increase in graduate work -
Civil Rights Movement
Began the trend of more women and minorities attending colleges/universities -
Gary Becker and "Human Capital"
Professor Becker at the University of Chicago produced a book detailing the private and social returns to investment of higher eductaion. Estimating a return of 12-13% -
Economic Opportunity Act of 1964
The bill was considered the war on poverty and Johnson's hallmark for his "Great Society" The bill was created to help the poor attain equal eductaion, health and employment This act also created Head Start, Job Corps and pushed for further grant programs, known as the guaranteed student loan program, community service, college library assistance, aid to developing institutions and the National Teacher Corp. -
First Group of Baby Boomers Start College
Large increase in the number of students of age to attend college Higher percentage of students who could go to college, were enrolling Increase in enrolled students shows an increase in enrolled women and minority students 1959-60 2% of the US was enrolled in college and in 1969-70 3.9% was enrolled -
"Benefits, Costs, and Finance of Public Higher Education"
This publication examined the "Master Plan" in California and found that CA had created a highly-selective university system, a mediocre state college system and a nonselective community college system. The financing of these schools and colleges was primarily through taxes, which were shown to be collected disproportionately by lower income families (whom were not receiving the benefits). -
The New Depression in Higher Education- Carnegie Commission, by Earl Cheit
Based on 41 interviews at universities and colleges, showed that 71% of the interviewed were heading for financial trouble or were already experiencing financial troubles The cost of education was on a steep incline and campus revenues were not keeping with pace Also showed that there was an excess of PhDs, as well as a poor labor market for recent graduates -
Amendments to the Higher Education Act
Increased the role of federal grants for need based aid Pell grants created as need based vouchers Creation of Sallie May; which purchased student loans from banks to free capital for future borrowers State Student Incentive Grants; offering incentives for states to establish or expand need-based scholarship programs These amendments were considered a sound change to assist those students in need Expanded institutional aid, by way of tuition discounts -
Two Carnegie Commission Reports- Advocating for an Increase in Tuition Rates
"Higher Education: Who Pays? Who Benefits? Who Should Pay?" report recommended a gradual increase from the previous 17% over ten years to 33% Committee for Economic Development report suggested 50% over ten years The producers of "Higher Education: Who Pays? Who Benefits? Who Should Pay?", later published an addendum after much public outcry, giving additional reasoning for the increase. Their primary reasoning was to show that the increase in cost was already seen at instituitions -
Edward F. Denison- Committee on Economic Development
Study released in 1974 that showed between 1950 and 1962, of the average annual growth of 3.39% about 0.42 % was attributed to education and 1.15% was from the advancement of knowledge associated with education The result of this report was that more people were aware and interested in the economics of education. The information was well publicized and the media gave great attention in reporting and investigating this further. -
Public Policy and Private Higher Education Report
Recommended high-tuition, high-aid policy Suggested that federal dollars be used as incentive to shift aid to public instituitions only and aid based on need. Causing state schools to increase tuition. -
Population of 18-24 year olds increases
Between 1970 and 1980, the US saw an increase of 23% in this age group Enrollmenet during the same period increased by 41%, showing participation rates were still trending and growing at a pace faster than space available Revenues continued to grow as well, increasing by $37 billion between 1969 & 1979 Disdain for colleges began to grow after public opinion showed that liberal leaning professors filled classrooms and that students were not learning as much as they should -
Beginnning of a 15 Year Decrease in College Aged Students
School administrators began preparing for the worst -
Shift in Degrees from Liberal Arts to Professional Programs
As well... a new finding that adult students can also be apart of the college campus, helping to keep enrollment up in the 1980's -
Philosophical Shift
Shift toward private interest dominated popular beliefs Human capital theory was thought of as beneficial and the public questioned who should then pay for student tuition. . . most believed the beneficiary of the education should pay the burden/cost -
Reagan's Election
Called for state and the private sector to fund higher education Numerous attempts were made to close the U.S. Dept. of Education Due to these lost battles with Congress, aid provisions were slowed and saw a slower growth during his tenure In spite of his shifts to state and private, enrollment increased between 1980-90 -
State Aid Reduced
States were now responsible to pay for programs like Medicaid and public school finances As well, states were being pressured to reduce taxes -
Social Security Dependent Tuition Phased Out
Due to the creation of Pell Grants -
The Start of a New Decade
The decade starts with a recession and general distress and uncertainty Families see the cost of tuition rising faster than incomes Enrollments are capped Class sections are eliminated Degree completion is stretched to 5/6 years Faculty salaries lag Research support decreases Class sizes increase State support is slashed College affordability became a major political obstacle -
College Affordability- the New Buzz Word
The political meaning of college affordability shifted from allowing access to low-income students and went to financing the problems facing the middle- and upper-income families -
Further Amendments to the Higher Education Act
Offered federal loans (Stafford and Parent Loan for undergraduate studenst), furthering the beliefs of the new "College Affordability" needs for middle- and upper- classes After 1993 loans eclipsed the number of grants Loans accounting for 66% of federal student aid in 2009-10 -
Governor Zell Miller
Created the first merit aid program in Georgia Funded through the state lottery Recepients needed to be state residents, who achieved a B GPA in high school and maintained a B GPA in any state (public and private) schools In some cases, these merit scholarships covered full tuition, fees and a book allowance Family income was capped at $100,000 (year two- originally at $66,000) -
Echo Boom
Traditional college-age population increased with a new baby boom- "echo", when the children of the original "baby boom" generation reached college age This number was seen to slow starting in 2008-09 College enrollment grew from 13.8 million in the 1990's to 15.3 million in 2000 The majority of this increase was seen in the public two-year colleges -
New Tax Credits
Brought on by the Clinton administration Hope Scholarship Credit: applied to the first two years of college and provided a 100% tax credit for the first $1,000 educational expenses and a 50% credit on the 2nd The Liftetime Learning Credit: anyone taking courses received 20% of the first $10,000 of educational expenses Both were not refunds, and so families who were not entitled to a tax-refund did not receive any of this funding -
Tech Boom
The stock market's "Tech Boom" helped with the drop in state-funding (at this time) and allowed for better managed endowments and larger philanthropic gifts This allowing for the public and lawmakers to think that higher education could make it on their own with less taxpayer support During this same period, state school administrators saw that state assistance would never rise again, to the levels they once were and they decided to raise tuition, burdeing students and their families -
Growth of Private Student Loans
In 1996-97 non-guaranteed (by the federal Govt.) loans totaled $2.2 billion In 2007-08 they increased to $21.8 billion -
The World is Flat by Thomas Friedman
Gave the public a new way to look at outsourcing of jobs and the growing number of knowledge workers in India, China, Brazil, Russia and other countires The book also shows the decline in our status as top educators in
relation to other developing countries Also published in 2005 is "Equity and Excellence in American Higher Education" which question if our schools/universities are "engines of opportunity or bastions of privelege" -
Learning Outcomes
Seen in Peter Ewell's "Making the Grade", a report intended for trustees to answer- How good is our product? How good are we at producing our product? Are our customers satisfied? Do we have the right 'mix' of products? Do we make the grade? The National Center for Public Policy and Higher Education included student learning outcomes in its graded performance Dept. of Education stated that "postsecondary education institutions should measure and report meaningful student learning outcomes" -
Measuring Up: The National Report Card on Higher Education
Noted that: "The nation as a whole has made no notable progress since the early 1990's in enrolling young adults or working-age adults in education and training beyond high school. Furthermore, participation in education beyond high school still varies by race/ethnicity and annual family income." The report also higlights the growing problem of affordability for lower income families -
The Great Recession
Collapse of the housing market, left the stock market at its lowest period since the Great Depression At the same time, continued growth was seen in US High School Graduation rates 2.85 million in 2000-05 and 3.19 million in 2005-2006 Despite tuition increases, institutional enrollmet increased from 15.3 million to 17.5 million in 2006 -
Later Amendments to the HEA
Requiring colleges and universities to explain in great detail any price increases that exceed national levels, describing how the increase fits into the needs of their budget, as well as detail the steps they will take to decrease the cost -
American Opportunity Tax Credit
Making the pre-existing "Hope Tax Credit" more available to those with higher incomes, expanding educational tax-credits originally brought on from the Clinton administration -
Obamas Proposed Educational Goals
"By 2020, the US should rank first in the world in the share of its population with a college degree" Focusing on the age group 25-35 In support of this goal, Obama proposed major overhaul in federal aid, programs that improve access to education and raise graduation rates and strengthen community colleges The American Recovery and Reinvestment Act of 2009 also gave money to the states that could be used for higher education... $5.9 billion was allocated as a result -
Passing of the Health Care and Education Reconcilliation Act
Eliminating federal guaranteed student loans supplied by financial institutions and shifting to direct federal loans By shifting to direct federal loans, estimates show that there will be a savings of $61 billion which will then be used to increase the maximum dollar amount given in Pell Grants The law streamlined the FAFSA Also lowered the repayment cap on federal student loans from 15% to 10%
