KẾ HOẠCH cải CÁCH hỗ TRỢ tài CHÍNH GIÁO dục đại học

In Vietnam, research on the US higher education system has been introduced to the scholars as well as the public. However, there has been not much research that intensely focuses on higher education under the time of Barack Obama, especially after his reelection in 2012. As one of the first attempts, this research paper seeks to explore the higher education reform plans of President Obama and its details, implementation and responses, especially on federal financial supports. The paper begins with reviewing the remarkable features of the US Higher Education system and important historical legislations that make profound impacts to the US Higher Education system until today. Then, the investigation involves the legislations and their implementation under President Obama’s first term 20092012 and the reform plans for the second term 20122015. The analyses of the collected data demonstrate improvements of the President’s plans from previous financial policies; its strengths and challenges from scholars’ perspectives in order to discuss the plan’s possibility of success and its impacts.

In Vietnam, research on the US higher education system has been introduced to thescholars as well as the public However, there has been not much research thatintensely focuses on higher education under the time of Barack Obama, especiallyafter his reelection in 2012 As one of the first attempts, this research paper seeks toexplore the higher education reform plans of President Obama and its details,implementation and responses, especially on federal financial supports The paperbegins with reviewing the remarkable features of the US Higher Education systemand important historical legislations that make profound impacts to the US HigherEducation system until today Then, the investigation involves the legislations andtheir implementation under President Obama’s first term 2009-2012 and the reformplans for the second term 2012-2015 The analyses of the collected datademonstrate improvements of the President’s plans from previous financial policies;its strengths and challenges from scholars’ perspectives in order to discuss theplan’s possibility of success and its impacts

TABLE OF CONTENTS

ACCEPTANCE PAGE

ACKNOWLEDGEMENTS i

ABSTRACT i

TABLE OF CONTENTS i

ACRONYMS i

LIST OF TABLES, FIGURES, AND CHARTS i

CHAPTER 1: INTRODUCTION 1

1 Statement and rationale 1

2 Aims and objectives of the study 1

3 Scope of the study 1

4 Methodology 1

5 Research structure 1

CHAPTER 2: AN OVERVIEW OF THE US HIGHER EDUCATION SYSTEM 1

1 Higher education system in the US 1

1.1 Size and structure of the US higher education 1

1.2 Decentralization of authority and responsibility 1

1.3 Costs and expenditures 1

2 Significant events of the higher education reform history in the US 1

2.1 The Morrill Act 1

2.2 TheServicemen's Readjustment act 1944 (GI BILL Act of June 22, 1944) 1

2.3 The Higher Education Act (HEA) of 1965 1

3 Types of federal student aids 1

3.1 Federal grants & scholarships 1

3.2 Federal loans 1

3.3 Work-study jobs 1

3.4 Aid for military families 1

CHAPTER 3: 1

THE HIGHER EDUCATION REFORM PLANS OF PRESIDENT BARACK OBAMA 1

1 “Helping Middle Class Families Afford College” 1

1.1 Grants 1

1.2 Loans 1

1.3 Other supports 1

2 “Keeping costs down” 1

2.1 Policies applied to colleges and universities 1

2.2 Policies applied to states: 1

3 Other reform plans 1

3.1 “Strengthening the community college” 1

3.2 “Improving Transparency and Accountability” 1

CHAPTER 4: CONCLUSIONS 1

1 Major findings of the research 1

2 Limitations of the study 1

3 Suggestions for further studies 1

BIBLIOGRAPHY 1

APPENDICES 1

ARRA American Recovery and Reinvestment Act

CCAF Community College of the Air Force

EFC Expected Family Contribution

FAFSA Federal Student Aid Application

FELFE Federal Family Education Loan

FSEOG Federal Supplemental Educational Opportunity Grant

HCERA Health Care and Education Reconciliation Act

PLUS Parent Loan for Undergraduate Students

TAACCCT Trade Adjustment Assistance Community College and Career

TrainingTEACH A Teacher Education Assistance for College and Higher Education

LIST OF TABLES, FIGURES, AND CHARTS

Table 1 The US postsecondary institutional classification system 6

CHAPTER 1: INTRODUCTION

1 Statement and rationale

In such a leading country as the United States of America, higher educationtakes pervasive roles because “the system has generated tremendous scientificdiscoveries, fueled the economy, solved pressing social problems, and ensured thecultural vitality in our [America’s] community” (Rosenstone, 2004) Moreover,access to higher education can bring tremendous opportunities to all kinds of people

in America to realize their dreams and to move forward in their lives Millions ofstudents with postsecondary education can make tremendous contribution to theirfamilies and communities

The United States of America, which is home of the biggest and first-rateduniversities and colleges in the world, attracts millions of student all over thecountry and the world to come to study and do research every year One thought-provoking question is how the US Government can run this giant system effectivelyand what are the efficacious educational incentives that they offer to support andencourage the development of universities and colleges Moreover, in the era ofeconomic crisis and international affairs, will the educational policies be placed asthe first priority of the government or not?

In an attempt to investigate this topic, the researcher has decided to conduct astudy on “US President Barack Obama’s higher education reform plans” to bringthe systemized knowledge and critical understanding about former and currenteducational policies of the US Higher education This study can help students makecomparisons with other education systems in the world To the education managers/scholars, the thesis contributes a critical perspective of Higher education policies inthe US in order to provoke thoughts and ideas of comparing educational systemsbetween the US and Vietnam

2 Aims and objectives of the study

The thesis aims at enriching the knowledge and understandings associated withHigher education in the US, under the administration of President Barack Obama.Specifically, the main objectives of this study are:

 To systematize knowledge about plans and arguments relating to the formerimportant acts of Higher education in the US since 1945, as well as theeducation reform plan of President Barack Obama

 To analyze the practical situations of Obama’s higher education reform planand its implementation; correspondingly, to discover critical viewpoints fromthe scholars, students and even the opposite party to the plan’s possibility ofsuccess and its impacts

3 Scope of the study

There are four main spotlights in the higher education reform plans;however, the research focuses on the policies that support students from middle-class families to afford higher education, and solutions to keep college cost andtuition down The other plans of strengthening community colleges and veteranpolicies will be combined in one section

4 Methodology

The study is conducted as a secondary research in which the author criticallycollects, compares and synthesizes the information from various sources anddifferent primary researches The research features three main characteristics: (1)Data-collecting, which means data are searched and observed regularly throughappropriate search engines, online books, library books and researches This is themost important step for a secondary research, so the researcher has to check thevalidity and reliability to build quality databases (2) Descriptive: To describe andsystemize the characteristics, data and arguments of the primary sources, like theofficial policy, acts, and speeches related to provide objective and systematicsynthesis of facts (3) Explanatory: To explain and analyze the secondary sources,

from the micro level like the scholastic articles and statistics from NGOs, to themacro level of presidential debates to provide detailed synthesis of viewpoints

5 Research structure

The study includes four chapters as follows:

Chapter 1- Introduction- introduces statement and rationale, aims and objectives,scope, methodology, and research structure of the study

Chapter 2-An overview of the US higher education system- provides background ofthe study, including definitions and information of key concepts, legislations, andpolicies related to the study

Chapter 3- President Barack Obama’s higher education reform plans- presents,synthesizes and discusses the reform plans, implementations and responses in order

to achieve the aims and objectives of the study

Chapter 4- Conclusions- summarizes the main issues of study, suggestions forfurther study, and limitations of the study Following this chapter are theBibliography and Appendices

CHAPTER 2: AN OVERVIEW OF THE US HIGHER EDUCATION SYSTEM

The US higher education seems to be converging yet different in many ways,thus, it is important not only to recognize them but also to understand their contexts- inhistory and culture One of the most remarkable researches that laid the theoreticalbasis for the study is “Giáo dục Đại học Hoa Kỳ” by Professor Lâm Quang Thiệp,Professor D.Bruce Johnstone, and Professor Philip G.Altbach (2007) The researchconsists of 12 articles of several issues relating to higher education in the US, with

an aim to bring a thorough perspective about the higher education system,governance, financing, accreditation, etc… Two most relevant parts for the studyare: “Đặc điểm giáo dục đại học Hoa Kì” in chapter 1 by Professor Lâm QuangThiệp, and chapter 2: The US Higher Education system by Prof D BruceJohnstone, which describe the system of the US Higher Education, and indicate itsfeatures by the policies and historical events which influence the US HigherEducation dramatically

As explained in the scope of the study, this study focuses on the reforms ofFederal support for students and “keeping costs down” policies To prepare thepractical background for the study, the following section will present key conceptswith description of types of Federal aid programs, especially grants and loans- thebest tools to support students from the Government; and the policies applied toveterans The research was carried out with highly reliable sources of informationprovided in the official pages and documents issued by the White House, the USDepartment of Education and subsidiary offices, and prestigious organizations

1 Higher education system in the US

United States operates one of the largest and most complex universal highereducation systems in the world Due to the scope of the study, the researcher willonly discuss three main aspects: 1) Size and structure; 2) Decentralization ofauthority and responsibility; and 3) Costs and expenditures

1.1. Size and structure of the US higher education

According to the “Digest of Education Statistics 2011” by the US NationalCenter for Education Statistics, in fall 2011, more than 76.3 million people wereenrolled in American schools and colleges Another 4.7 million were employed aselementary and secondary schoolteachers or as college faculty, in full-timeequivalents Other professional, administrative, and support staff at educationalinstitutions totaled 5.6 million

With regard to postsecondary education, the digest reported: “Collegeenrollment was 21.0 million in fall 2010, higher than in any previous year, and it isprojected to continue setting new records from fall 2011 through fall 2020”.Between 2000 and 2010, it is stated that the traditional college-age population rose

by 12%, and total college enrollment increased by 37 %; the number of full-timestudents increased by 45%, compared to a 26% increase in part-time students; andthe number of males enrolled increased by 35%, while the number of femalesenrolled increased by 39%

Regarding the matter of higher education institutions, it is estimated that therewere more than 4200 degree-granting colleges and universities, consisting of 1700public and 2300 private ones (Johnstone, 2006) The US Higher Education, or the

US Postsecondary Education, offers a diverse array of postsecondary educationalexperience, in terms of diplomas, educational programs, durations, and otherpolices Based on the classification and data by Carnegie Foundation for theAdvancement of Teaching (cited in Johnstone, 2006), the US postsecondaryinstitutional classification system is summarized in a table as followed:

DEGREE QUANTITIES DESCRIPTION

Doctoral/research

The most research-oriented and thusgenerally the most academically-prestigious universities provide “post-baccalaureate" or “graduate” or “advancedprofessional” programs

Masters colleges and

Sometimes called comprehensive colleges

and universities, many of the publicinstitutions in this category having hadtheir origins in former teachers colleges

Baccalaureate

More than one thirds of Baccalaureatecolleges emphasize the Liberal Arts-political science, languages, humanities,and the scientific disciplines- rather thanvocational or professional specializations

Associate’s colleges

1,669

Primarily public community colleges,which offer both short-cycle vocational orprofessional programs as well as coursesthat are transferable to a four-yearbaccalaureate degree program

Specialized

Schools of medicine and other healthprofessions, theology, law, engineeringand technology, art, music, and designNon-degree

Private for-profit, or proprietary

Table 1: The US postsecondary institutional classification system

(Carnegie Foundation for the Advancement of Teaching, cited in Johnstone, 2006)

It can be concluded from the section that the US higher education is whether measured in absolute numbers of institutions or college enrollments In the

large-US higher education system, there is a proper division between “undergraduate”and “graduate” or “advanced professional” programs Among the diverse degree-granting postsecondary institutions, community colleges take the biggest proportionand become one of the significances of the US higher education system

1.2. Decentralization of authority and responsibility

The responsibility for both the public and private higher education sectors in theUnited States is under the legal jurisdiction of the 50 states rather than of thenational (or the federal) government, except for such institutions as military serviceacademies and some Native American tribal colleges

The federal Department of Education has three critical functions that applyequally to public and private institutions: “(1) the provision of student financialassistance, mainly in the form of need-based grants and federally-guaranteed andslightly subsidized loans that are fully portable to most post-secondary institutions,public and private; (2) oversight over (but not operating responsibility for) theaccreditation of colleges and universities; and (3) the maintenance of an extensivedatabase, including annual surveys of institutional finances, enrollments, and degreeprograms, as well as longitudinal studies of student interests and college-goingbehavior In addition, the federal government assumes financial responsibility forthe funding of most basic research.” (Johnstone, 2006)

Accordingly, it is easily seen that the immensely important role of the federalgovernment is to provide the student aids and support of research for universities;and financial responsibility for research are issued mainly through establisheduniversities, instead of the national research institutes like in the French or theSoviets or the German systems

1.3. Costs and expenditures

Cost and expenditures can be seen from two different perspectives: From highereducation institutions and from students and families In terms of institutional costs,Johnston (2006, p.6) claimed that they vary enormously “by institution, by sector(i.e., whether research universities or undergraduate colleges), by program (e.g.whether humanities, laboratory science or engineering), and perhaps most of all byaccess to revenue (i.e., size of endowment and annual private gifts, and whetherthey have the prestige and the market position to charge a very high tuition)”.Hence, in order to make valid comparisons among higher education institutions, thecriteria should be strictly selected to avoid “highly variable and extraneousexpenses” (Johnstone, 2006) It is also stated that higher education was like the

"productivity resistant" business; therefore, higher education institutions usuallykept the yearly per-student expenditures increases slightly higher than the averageeconomic increases to guarantee that higher educational costs can be covered inspite of inflation

Secondly, as for costs of higher education borne by parents and students,Johnstone claims that the real cost that they have to pay, after excluding grants andother forms of price discounting, in both the public as well as the private sectors, arealso higher than other countries However, students and parents are willing to paythe price because of the popularly accepted belief in the chartered quality ofestablished institutions since the early years, especially the ones from privatesections Moreover, the diverse sources of financial aids, not only from the verylarge system of grants and loans from both state and federal governments, but alsofrom non-governmental revenues of institutions and private philanthropic sources,make colleges and universities more affordable to families from most classes; alsodeduct the burden of costs on taxpayers This point distinguishes US highereducation system from other countries’ systems

It can be concluded from the section that both higher education institutions andstudents and families place “extensive financial reliance” (Johnstone, 2006) on the

Federal government and non-governmental sources to cover the high costs andexpenditures, freeing taxpayers from taxation pressures, which “no country'staxpayers have it so easy and get so much quality higher education for the relativelyfew taxpayer dollars, than in the US” (Johnstone, 2006).

2 Significant events of the higher education reform history in the US

The US federal government, as explained in the Costs and Expenditures section,provides colleges, universities, students and parents with enormous aid programs.This section serves as a summary of the historical legislations that made profoundimpacts, in terms of rewards for colleges and university, the federal financial aidsfor students and veterans, which can be seen as comparisons with the reform plans

of President Obama in Chapter 3 All information presented in the section wasexcerpted on ourdocuments.gov- belonging to The Our Documents initiative, which

is cooperation among National History Day, The National Archives and RecordsAdministration, and USA Freedom Corps

2.1. The Morrill Act

Sponsored by Vermont Congressman Justin Morrill, the Morrill Act was signedinto law by President Abraham Lincoln on July 2, 1862 Officially titled "An ActDonating Public Lands to the Several States and Territories which may provideColleges for the Benefit of Agriculture and the Mechanic Arts", the Morrill landgrants laid the foundation for a national system of state colleges and universities, byproviding each state with 30,000 acres of Federal land for each member in theirCongressional delegation Sixty-nine colleges were funded by these land grants Enacted August 30, 1890, Morrill Act of 1890 was established for additionaldirect appropriations for the land grant colleges of agriculture The most significantfeature of the second Morrill Act was that the 1862 schools could receive theadditional funds only if they admitted blacks into their programs or if they providedseparate but equal agricultural higher education to black students In the period

following the Civil War, sixteen southern states established separate land grantcolleges of agriculture for black students under this Act

Morrill act made it possible for new western states to establish colleges for theircitizens, which emphasized agriculture and mechanic arts, therefore openedopportunities to thousands of farmers and working people previously excluded fromhigher education Reshaping the nation’s social and economic fabric, the MorrillAct brought support for institutions directly from the government and reinforced theconcept that colleges have to shift from classical studies or religious purposes to thepractical applied studies and programs which support the economic and socialdevelopment outside of the classroom

2.2. The Servicemen's Readjustment act 1944 (GI BILL Act of June 22,

Within the following 7 years, approximately 8 million veterans receivededucational benefits Under the act, approximately 2,300,000 attended colleges anduniversities, 3,500,000 received school training, and 3,400,000 received on-the-jobtraining The number of degrees awarded by US colleges and universities more thandoubled between 1940 and 1950, and the percentage of Americans with bachelordegrees, or advanced degrees, rose from 4.6 percent in 1945 to 25 percent a half-century later

The Servicemen's Readjustment act 1944 put higher education within the reach

of millions of veterans of World War II and later military conflicts and become one

of the milestone legislations of the country

2.3 The Higher Education Act (HEA) of 1965

The Higher Education Act of 1965 was a legislative document that was signedinto law by President Johnson on November 8, 1965 to “strengthen the educationalresources of our colleges and universities and to provide financial assistance forstudents in postsecondary and higher education” (Pub L No 89-329) The HEAcreated grants, loans and other programs to help students acquire education beyondsecondary school The Talent Search program, then called Contracts to Encouragethe Full Utilization of Educational Talent, was created in the HEA of 1965 The EA

of 1965 was reauthorized in 1968, 1972, 1976, 1980, 1986, 1992 and 1998 Beforeeach reauthorization, Congress amended additional programs, changed the languageand policies of existing programs, or made other changes In 2004, the HEA isscheduled for the next reauthorization

3 Types of federal student aids

As presented above, federal aids are the important tools, which featuresignificantly Federal Government’s roles in the US higher education system Hence,federal aids undoubtedly should be considered most in the President’s reform plans.This section provides with an overview of federal student aids system, basing onstudentaid.ed.gov- the webpage of the Federal Student Aid, an office of the USDepartment of Education There are four types of federal student aids: Federalgrants & scholarships, federal loans, work-study jobs, and aid for military families

3.1. Federal grants& scholarships

Grants and scholarships are often called “gift aid” because they are free money,which means financial aid that doesn’t have to be repaid Grants are often need-based, while scholarships are usually merit-based There are four types of federalgrants and scholarships as follows:

 The Federal Pell Grants

The Federal Pell Grants, or Pell Grants, issued in 1965 in the “Higher educationact of 1965” legislation, is a part of the US Department of Education; Pell Grantsare “generally awarded to undergraduate students who are financially needy andwho have not earned a bachelor’s or graduate degree” The amount depends onstudents’ financial need, costs to attend school, status as a full-time or part-timestudent, and plans to attend school for a full academic year or less.

 Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG is a grant for undergraduate students with exceptional financial need.Students who will receive Federal Pell Grants and have the most financial needwill receive FSEOGs first The FSEOG program is administered directly bythe financial aid office at each participating school and is therefore called

“campus-based” aid

 Teacher Education Assistance for College and Higher Education (TEACH)The TEACH Grant Program provides grants of up to $4,000 a year to studentswho are completing or plan to complete course work needed to begin a career inteaching TEACH grant is different from other federal student grants because itrequires students to take certain kinds of classes in order to get the grant, and then

do a certain kind of teaching jobs as a condition for receiving a TEACH Grant Ifstudents do not complete service obligation, all TEACH Grant funds you receivedwill be converted to a Direct Unsubsidized Loan, which then are repaid to the USDepartment of Education

 Iraq and Afghanistan Service Grant

Like other federal grants, Iraq and Afghanistan Service Grants provide money

to college or career school under-24-year-old students whose parents or guardiandied as a result of military service in Iraq or Afghanistan to cover educationexpenses More details of the Grant are presented in the “Aid for military families”

in this section

3.2. Federal loans

Loans are borrowed funds that students must repay with interest A federalstudent loan allows students and their parents to borrow money to help pay forcollege through loan programs supported by the federal government During thetime before 2010, the former system of Federal loans runs under the Federal FamilyEducation Loan (FELFE) program, which includes Stafford, Grad PLUS, andConsolidation Loans with the details below:

Stafford Interest paid by government when student is in school and

during periods of grace and deferment Interest rate: 6.8%Unsubsidized

Stafford

Interest NOT paid by government when student is in schoolnor during periods of grace and deferment Interest rate: 6.8%PLUS Enables parents to borrow to pay the costs of higher education

for their dependent undergraduates and graduate students topay their costs Interest rate: 8.5%

Consolidation Combines more than one federal education loan into a single

loan Weighted average of loans rounded upward to nearest1/8% Capped at 8.25%

Table 2- Federal loans system under FELFE program (studentaid.ed.gov) 3.3. Work-study jobs

Federal Work-Study provides part-time jobs for full-time or part-timeundergraduate and graduate students with financial need, allowing them to earnmoney to help pay education expenses The program encourages community servicework and work related to the student’s course of study Federal Work-Study isadministered by schools participating in the Federal Work-Study Program

3.4. Aid for military families

 Reserve Officers’ Training Corps (ROTC) Scholarships

These scholarships are awarded on the basis of merit rather than financial need,including Army ROTC scholarships, The Air Force ROTC college scholarship,Navy ROTC scholarships, and the Marine Officer ROTC Program

 Department of Veterans Affairs Education Benefits

The VA offers education benefits for veterans and for their widows anddependents as: Tuition Assistance, Post 9/11 GI Bill, College Fund Programs, LoanRepayment Programs, Service members Opportunity Colleges, Community College

of the Air Force, and testing programs

 Iraq and Afghanistan Service Grant or Additional Federal Pell Grant Funds

Every American student who is under 24 years old and has parents or guardian,who died as a result of military service in Iraq or Afghanistan after the events of9/11, is eligible for this additional aid

- Federal Pell Grants: Every applicant, who is eligible to both the Grant andPell Grant, will receive an Expected Family Contribution of zero, whichmaximizes the Pell Grant eligibility and can increase the eligibility forother federal student aid programs

- Iraq and Afghanistan Service Grants

Grant but NOT for a Pell Grant based on your EFC, will be eligible toreceive the Iraq and Afghanistan Service Grant Their EFC and eligibility forany need-based federal student aid will not be affected

 Limited Interest Rates, No Accrual of Interest, and Deferment of StudentLoans

Under the Servicemembers Civil Relief Act, if students take out student loansprior to entering the military or being called to active duty, the interest rate on thoseloans will be limited to 6% during your active duty military service This applies toboth federal and private student loans (and other loans as well).

For all Direct Loans first disbursed on or after Oct 1, 2008, no interest will becharged for a period of no more than 60 months while students are serving on activeduty For Direct Consolidation Loans, this benefit applies to the portion of theconsolidation loan that repaid loans first disbursed on or after Oct 1, 2008

In conclusion, federal financial aids take crucial roles in American students’budget pocket for colleges Among student financial aids, Pell Grants and federalloans are the most popular ones, which will be prioritized in the President’s highereducation reform plans presented in the next chapter

CHAPTER 3 THE HIGHER EDUCATION REFORM PLANS OF PRESIDENT BARACK OBAMA

In the first decade of the 21stcentury, the US Higher Education had to face withnew challenges from the impacts of the financial downturns It was not onlybecause of the shortage of the overall State budget from the Great Recession, butalso because of the philosophical changes in thoughts about Higher education Inthe “Challenge facing Higher education in America: Lessons and Opportunities”,

2004, Professor Steven J Rosenstone indicates the dramatic culture shift that makesAmericans have the different mindset about higher education:

“Higher education is increasingly considered a private good that benefits primarily the individual who receives the degree And because the individual, not society as a whole benefits from the education—so the argument goes—the individual, not society, should cover its cost.”

(Rosenstone, 2004, p2)

The consequences, also presented by the author, were the dramatic cuts of Statesupport for Higher education and the skyrocketing costs of tuition fees, whichproduced various disadvantageous effects on the quality of higher educationinstitutions, as well as opportunities of accessing colleges for students On the onehand, within the country, these effects might cause distances between social classesand races; and on the other hand, in the international platform, the competitiveness

of the US Higher education has as well been threatened Besides, other socialelements, such as the increasing limitation in international exchanges and theimpacts of the September 11 attack, also bring challenges to the US highereducation It is stated on Whitehouse.gov that the United States ranks ninth in theworld regarding numbers of young adults enrolled in college In terms of proportion

of certificates and degrees awarded to adults ages 25-34, the US has fallen to 16th

in the world

In spite of the disadvantageous circumstance of higher education, in the address

to Joint Session of Congress on February 24, 2009, President Obama stated hisambition for the US higher education:

"We will provide the support necessary for you to complete college and meet

a new goal: by 2020, America will once again have the highest proportion of college graduates in the world."

(President Barack Obama, 2009)

In order to achieve this bold goal, President Barack Obama has undertaken theinitiatives for higher education including:“Helping Middle class families affordcollege”, “Keeping the costs down”, “Strengthen Community College”, and

“Improving Transparency and Accountability”

1 “Helping Middle Class Families Afford College”

In the State of the Union address 2012, President Barack Obama said tuition feeswere “the most daunting challenge” (President Barack Obama, 2012) for studentsgraduating from high school Based on the data of the College Board, the averagepublished tuition and fees at private non-profit four-year institutions was $29,056 in2012-2013, having risen by $1,173 compared to the school year 2011-2012.Whiletoday’s cost of living is rising dazzlingly and the jobs payment do not meet theneeds, middle class families, who makes less than $250.000 per year, have to takecollege in consideration Just over half of American high school graduates from thelow-income families attend college, and only 25% of them complete the education(White House, n.d) Almost every American student obviously needs grant aids, orfederal tax credits, or scholarships to cover the expenses; therefore, those kinds offinancial aids for students must be strengthened

“Higher education can’t be a luxury – it’s an economic imperative that every family in America should be able to afford”

(President Barack Obama, State of the Union address, 2012)

Over the past three years, the Obama Administration has taken historic efforts tohelp students afford college, including reforming the student aid system to becomemore efficient and reliable and by expanding grant aid and college tax credit,simplifying the Federal Student Aid Application (FAFSA), providing income basedrepayment options for borrowers with debt, fixing low interest rates on studentloans, etc…To describe the system systematically, the researcher will divide thecontent into three parts: “Grants”, “Loans”, and “Other supports”.

1.1 Grants

Two-thirds of the American students get grants and scholarships to affordcolleges and universities (White House, n.d.).Among four types of federal grantsand scholarships ( Section 3.1- Federal grants & scholarships, Chapter IIntroduction), the Federal Pell Grants (Pell Grants) is the most popular grant thathelps more than 8 million recipients every year to afford college With its popularityand helpfulness, investment for Pell Grants is considered crucial to assist studentsfrom low-income and moderate-income families to go to colleges and universities

On the official website Whitehouse.gov, it is marked that $40 billion was invested

in Pell Grants by the President with the number of recipients and the maximumFederal Pell Grants both increasing and are projected to grow in the future

“Under the President’s leadership, the number of Pell Grant recipients has expanded by 50 percent over that same time, providing college access to millions of additional low-income and middle-class students across the country”

“Specifically, the President has raised the maximum Pell Grant award to

$5,635 for the 2013-14 award years - a $905 increase since 2008”

(White House, n.d.)

In “Trends in Student Aid 2012” report, The College Board, a not-for-profitorganization founded in 1900 estimated that the maximum Pell grant for the 2011-

12 award year (July 1, 2011, to June 30, 2012) was $5,550, which was about equal

to the 1976-77 maximum grant of $1,400 after adjusting for inflation Meanwhile,