2. BACKGROUND
Over 25 years of business, consulting, and leadership experience.
Over 10 years as an educator
Doctorate in business from Nova Southeastern University in Ft. Lauderdale
Masters in business from LIU in NY.
Bachelors in business Baruch College CUNY in NY.
Managing Partner: R Squared Group
4. OVERVIEW
In January, 2015 the President unveiled the America’s College Promise proposal to
make two years of community college free for responsible students, letting
students earn the first half of a bachelor’s degree and earn skills needed in the
workforce at no cost. The financial and staffing implications of such a change are
enormous for both two-year and four-year schools. In addition, the changes for
U.S. Colleges in terms of how they operate, financial institutions, Government
oversight, and student opportunity and responsibility are significant. This
presentation will review and help explain what the overall impact may be.
Overview of the Plan
President Obama laid out the general components of the plan when he spoke at
Pellissippi State Community College, in Knoxville, Tenn., on Jan. 9, 2015. The
federal government would pay three-quarters of the average cost of community
college tuition- about $3,800 a year for two years-and participating states would
cover the remaining cost. If all 50 states buy in, the Obama administration says 9
million students could benefit. The White House estimates that the initiative would
cost the federal government $60 billion over 10 years.
5. THE IDEA IS NOT NEW!
“The time has come to make education through the 14th grade available in
the same way that high school education is now available. This means
tuition-free education should be available in public institutions to all
youth for the traditional freshman and sophomore years or for the
traditional two-year junior college course.”
Although it may sound similar, this statement was not uttered by President
Obama. It was, in fact, a declaration made by the United States’ first
national commission on higher education, the Truman Commission, in
1947.
6. WHAT OCCURRED FROM THE TRUMAN PROPOSAL
It laid the foundation for the landmark Higher Education Act of 1965.
Many state governments moved ahead with plans to expand public higher
education, in particular by creating or enlarging community colleges, in
the years after World War II.
Framing higher education as a public good, the commission argued that an
educated citizenry provided the best hope for preserving democratic
freedom, achieving economic security and even promoting world peace.
7. THE PROPOSAL
The proposal, modeled in part on programs in Tennessee and Chicago,
promises to use federal and state dollars to eliminate the costs
associated with tuition and fees at community colleges for students
who enroll at least part-time and maintain a 2.5 grade point average.
The White House estimates that the free tuition program would cost $6
billion a year. But that money would simply replace the tuition students
were already paying, not increase colleges’ revenue. States would be
required to pay for one-quarter of this tuition subsidy. Some may raise
that money by decreasing the direct subsidies they give colleges now,
which currently cover approximately two-thirds of the cost of educating
each student.
8. KEY GOAL
The ability to provide a debt-free route to a college education for all
Americans willing to work for it.
9. THE CONCERNS
Private Institutions could not compete.
Small Colleges would close
Public Institutions would be vulnerable to Government Control
These same concerns have been discussed with President Obama’s
proposal.
Less Competition
Diminished Markets.
Higher education experts have questioned the "last dollar" funding method,
because only students who don't receive enough financial aid would
benefit. In a sense, those with the least financial need would benefit the
most from such programs
10. THE BENEFITS
Renews the nation’s promise to provide educational opportunity to all who
are willing to work for it.
It serves as a reminder that education is not just a private benefit, open
only to those who can afford it, but a public good worthy of investment.
The possibility for all citizens to participate in envisioning and constructing
a better society.
11. THE QUESTIONS ABOUT SUCCESS
Of all of the students who enrolled in public community college for the first
time in the fall of 2003, only one-quarter earned any kind of certificate or
associate’s degree within six years. Another 12% earned a bachelor’s
degree within that six-year period.
City University of New York’s Accelerated Studies in Associate Programs
(ASAP), have doubled the graduation rate for participants. But at a cost:
ASAP costs 60% more per student than the standard CUNY program.
12. AACC
The American Association of Community Colleges (AACC) enthusiastically
welcomes President Obama's bold proposal to eliminate tuition for
students in certain community college programs. Like the state and
local initiatives it builds upon, the president's proposal dramatically
underscores the importance of obtaining a postsecondary education in
today's economy.
"AACC has been hard at work identifying the promising practices that our
member institutions have implemented to increase student access and
success. The president's proposal certainly fits into that category," said
AACC President and CEO Dr. Walter G. Bumphus. "This is an exciting
day for the nation's community colleges."
As the voice of the nation's community colleges, the American Association
of Community Colleges (AACC), delivers educational and economic
opportunity for 13 million diverse students in search of the American
Dream. Uniquely dedicated to access and success for all students
13. TENNESSEE
the "Tennessee Promise," which Gov. Bill Haslam announced last year in
his State of the State address. Under the plan, Tennessee high school
graduates – beginning with those graduating this spring – receive two
years of tuition-free community or technical college in the state if they
enroll full time and maintain a 2.0 GPA. The state will cover remaining
tuition costs after other grants, including federal Pell Grants, are taken
into account, under what is known as the "last dollar" funding method.
So far, 57,000 students have applied for the program.
14. CHICAGO
Chicago also initiated a free community college plan in 2014, which would
require students to have a 3.0 high school GPA and have no need for
remediation upon entering college.
15. STARBUCKS
Starbucks' announcement that it's offering a free college education to all
employees has received criticism from several educational policy
experts about the scope of its benefits.
The company said Monday that the program, offered to all 135,000 of its
U.S. employees, would give full tuition reimbursement to employees
who work at least 20 hours a week and are enrolled in Arizona State
University's online program as juniors or seniors starting this fall.
Freshmen and sophomores are eligible for scholarships as well, but not full
reimbursement.
Under the program, students must first complete 21 credits at ASU — or
seven courses — before they are eligible for a payout.
For online students, ASU undergraduate tuition ranges from $480 to $543
per credit hour, regardless of residency status and without additional
program fees. That means 21 credits would cost at least $10,000.
16. STARBUCKS CON’T
Juniors and seniors will receive $2,420 per semester in this upfront
scholarship, and Starbucks will reimburse the difference. Freshmen and
sophomores will get a scholarship of $1,267 per semester with no
Starbucks reimbursement, The Chronicle reported.
The scholarship represents 22% of tuition costs for freshmen and
sophomores and 42% of tuition costs for juniors and seniors, Jaime
Riley, Starbucks spokeswoman, said in an e-mail to USA TODAY
Network.
The Starbucks program does not truly address the cost of college and is
more like a "quasi-tuition reimbursement plan," said Rachel Fishman,
education policy analyst with the New America Foundation.
"In this scenario, you have the employer taking on some of the costs, but
the costs are shifted on the students until they can complete," Fishman
said in an interview with USA TODAY Network.
17. SCOTLAND
in 1999, Scotland voted in favor of creating its own parliament, and that
governing body got the responsibility for higher education. Scotland decided
college should be free up front, even if students had to contribute after
graduation. Beginning in 2001, tuition fees were abolished, and college
graduates had to pay £2,000, around $3,000, to the Scottish government the
year they graduated if they were earning at least £10,000, or $15,000, per
year.
In 2008, the Scottish government, led by the pro-independence Scottish National
Party, got rid of the post-graduation fee. College in Scotland became
completely free. Students were eligible for government support to pay living
expenses, too, through grants and loans adding up to £7,250, or about
$11,200, per year for students from the poorest families.
One argument in favor of free tuition is that it could encourage students to apply
to college who otherwise would think they couldn't afford it. "Everyone can
afford college because it's free" is a clearer message than "college might
look expensive, but you probably won't end up paying what colleges say
they charge."
18. SCOTLAND CON’T
The main criticism of Scotland's free tuition is that it's regressive: Students
still take on some debt to pay living expenses even though tuition is
free. And the burden of that debt falls more heavily on poor students
than others.
Students in Scotland from families making less than £30,000 per year, or
about $46,000, took out 70 percent of the student loans borrowed that
year, even though those students make up only 45 percent of the
college-going population, according to an analysis by Lucy Hunter
Blackburn, a former head of higher education for the Scottish
government who is a consistent critic of the free tuition plan.
Most of the arguments about Scotland's system are about whether it's more
or less generous than the way students elsewhere in the UK pay for
college. But the debate over higher education in the US is now
confronting some of the same issues.
19. THE CLINTON PROPOSAL
“New College Compact” with the primary aim of allowing students to attend in-state colleges or universities
without ever having to take out a loan.
About half the cost of Clinton’s $350 billion plan will go towards grants meant to ensure “tuition without
borrowing” through federal cash incentives provided to states.
Under Clinton’s plan, students would also get free tuition at community colleges; an initiative that has
also been floated by President Obama.
Interest rates on current loans could be reduced by allowing for refinancing at current federal rates; a move
Clinton says will save thousands of dollars in interest payments over the lives of loans for an estimated
25 million borrowers.
Clinton contends her plan could be paid off in 10 years by closing tax loopholes and deductions often
leveraged by the wealthiest Americans.
The Clinton proposal comes amid a flurry of similar proposals from Democratic presidential candidates
seeking to appeal to the younger generation of voters burdened by debt from higher education.
21. FUTURE TRENDS AND IMPORTANT ISSUES
Students do not value an education if they
haven’t paid for it.
Job markets are already flooded — will this
actually help students get jobs?
“Free” education is not really free — taxpayers
will have to pick up the slack.
I didn’t have America’s College Promise and
it worked out all right for me.
Couldn’t this actually limit student access to
community colleges by driving up fees and
pricing community colleges out of the market for
typical students?