Benjamin Miller: All Publications, Events and Press

New America Releases In-Depth Report on Federal Student Loan Guaranty Agencies

Communications — Mon, 13 Jul 2009 09:54:00 -0400

WASHINGTON, DC--Today the New America Foundation's Education Policy Program released "Rethinking the Middleman: Federal Student Loan Guaranty Agencies," by Benjamin Miller. The policy paper provides an overview of the history and current responsibilities of guaranty

Rethinking the Middleman

Education Policy — Mon, 13 Jul 2009 01:00:00 -0400

Each year, the federal government guarantees billions of dollars in loans disbursed through the Federal Family Education Loan (FFEL) Program, a public-private partnership that provides financial aid to students attending institutions of higher education. Despite the significant investment of taxpayer dollars, the actual administration of the FFEL Program is largely handled by participating lenders and a group of 35 non-federal guaranty agencies across the country. Guaranty agencies perform a number of administrative functions, such as disbursing federal default insurance provided to private lenders issuing FFEL loans, preventing loan default, and collecting or rehabilitating loans that borrowers have failed to repay.

Higher Ed Watch's Academic Bowl Championship Series

Communications — Wed, 10 Dec 2008 10:42:00 -0500

While the on-field performance of the Oklahoma Sooners and Florida Gators has led the two squads to college football's championship game, both schools are well behind other elite teams when it comes to graduating and retaining their student-athletes, according to rankings released yesterday by the New America Foundation's Higher Ed Watch blog.

Comments on Mandatory Endowment Spending

Education Policy — Thu, 11 Sep 2008 10:14:00 -0400

Benajmin Miller, program associate in the Education Policy Program at the New America Foundation, participated in a joint Congresional roundtable on Sept. 8, 2008, on whether colleges should be required to spend a set percentage of their endowment every year. Video of the roundtable is available here, and a complete copy of his prepared comments is available below in PDF form.

Taming the Tuition Beast

Ron Tang — Thu, 03 Apr 2008 12:47:00 -0400

It's not news that the cost of a college degree has risen significantly over the last couple of decades.

Since 1990, tuition and fees have risen by nearly 225 percent at four-year public colleges and by 154 percent at private four-year colleges. The real story is that tuition growth rates often fluctuate wildly from year to year -- which makes it hard for families to plan ahead and budget enough to cover the costs.

Last year, students at Villanova faced an unexpected tuition and fee increase that was double the previous year's.

Students entering Penn State in 2002 had no way of knowing that their costs would increase by 30 percent by 2006.

Such stories are echoed across the country. To take just one example, members of Arizona State's class of 2005 were stunned to learn as sophomores that their tuition was to rise by 39 percent in less than a year.

These shocks to the pocketbook no doubt contribute to the nation's 33 percent college dropout rate.

There is a solution to the problem. Recently, U.S. Rep. Patrick Murphy, D-Pa., of Bucks County, teamed up with a former Newt Gingrich lieutenant, Rep. Sue Myrick, R-N.C., to sponsor a "Truth-in-Tuition" amendment to the pending College Opportunity and Affordability Act of 2008.

Despite the opposition of college lobbyists, the House of Representatives passed the amendment in early February. The bill is now in a joint House-Senate conference committee.

If the Murphy-Myrick truth-in-tuition plan becomes law, colleges will be required to change their traditional practice of announcing tuition and fees for the next academic year only a few months before the fall semester bill is due.

Instead, schools would either present each incoming freshman class with a multi-year tuition and fee schedule or give families a nonbinding estimate of what they can expect to pay after financial aid is taken into consideration, assuming constant family income. If a school goes the non-binding estimate route, they'd also have to disclose how much their past estimates have been off on average.

Every public college in Illinois is subject to a state truth-in-tuition law. George Washington, Baylor and many other institutions of higher education have successfully instituted such pricing practices. Other colleges have gone even further, guaranteeing a fixed annual cost for all four years.

Many college officials resist the idea of providing price estimates, arguing that forecasting revenues and costs four years into the future is too difficult. But these same administrators have little trouble entering into expensive multi-year contracts with professors and coaches, or long-term financing agreements to pay for extravagant building projects, including sports stadiums.

Some public universities rightly argue that they lack the authority to set tuition rates. But there is no reason that state tuition-setting agencies cannot be held to a truth-in-tuition standard. They worry that state funding cuts drive tuition hikes.

But that's just the point. It shouldn't be easy to boost tuition and fees dramatically to back fill every state budget cut.

College tuition undeniably is a drain on the wallets of American families. It does not, however, have to be an unpredictable surprise from year to year. Families won't like seeing that their costs may rise 10 percent one year and 20 percent the next. But at least having such information at the start of a college program will provide students and families with crucial information they need to plan their finances.

As families in Pennsylvania and across the country struggle to make college payments, the least our universities and states can do is to be up front about the true costs of getting a degree.

If, as seems likely, they won't do this on their own, Congress should require them to.

Turning up the Heat on Endowments

Education Policy — Tue, 29 Jan 2008 18:08:00 -0500

As the old adage goes, you reap what you sow. For many years colleges and university endowments, which receive very advantageous government tax breaks, have grown at extraordinary rates. Now, two high-powered senators are starting to ask questions about just what these wealthy institutions have been doing with their funds. While we applaud Congress’ efforts, we are afraid that too much of a focus by the Senators on tuition, rather than low-income student access, could lead to more improperly tilted financial aid policies — and… more

A Wobbly Stool

Education Policy — Thu, 24 Jan 2008 16:34:00 -0500

The House version of legislation to reauthorize the Higher Education Act contains language that proposes to change how student loan defaults are calculated, a move that could have serious implications for schools and students’ access to federal student aid. This is a welcome change to the current shaky three-part system of accountability that fails to provide good information about the absolute and relative quality of a school’s education.

The Current System… more

Baby Carrots and Twigs

Education Policy — Thu, 15 Nov 2007 15:05:00 -0500

Yesterday, a key Congressional education committee took a groundbreaking albeit modest step on a top flight concern of parents and students — ever escalating college tuition.

For years, the federal government’s main role in higher education finance has been to bankroll student aid and research. Although there are exceptions, federal funds have come with few strings attached for colleges and universities. In the form of the College Opportunity and Affordability Act, the House education committee aims to take an… more

Flawed Reasoning on Endowments

Education Policy — Wed, 24 Oct 2007 12:58:00 -0400

Pell Grant Funding Up in the Air

Education Policy — Thu, 04 Oct 2007 10:42:00 -0400

While the threatened showdown between Congress and President Bush over the College Cost Reduction Act never materialized, a different fiscal fight between the two branches of government is looming, this one over annual appropriations spending bills.

A Way to Increase Socioeconomic Diversity at Elite Colleges

Education Policy — Wed, 19 Sep 2007 15:58:00 -0400

The Senate Finance Committee appears to be moving forward with a proposal that would require wealthy colleges and universities to spend a minimum percentage of their endowments each year — a move which we at Higher Ed Watch strongly support. Private foundations, like the Bill & Melinda Gates Foundation for example, are required by law to spend at least five percent of the value of their endowments each year, but colleges are exempt from… more

Making Wealth Work

Education Policy — Wed, 08 Aug 2007 04:12:00 -0400

Last week, we discussed the paucity of low-income students at the country's wealthiest colleges and universities. We offered a proposal that would require the richest private colleges to devote a portion of their yearly endowment income to help increase the socioeconomic diversity of their students. Some might argue that there aren't enough qualified underprivileged students to meet such a goal. But as the experience of one top college shows, economic diversity is achievable — so long as colleges are willing to make the effort.

Nelnet's Friend with Benefits

Education Policy — Tue, 07 Aug 2007 21:18:00 -0400

Nebraska Attorney General Jon Bruning is a forgiving man — at least when it comes to those who are helping finance his planned campaign for the United States Senate, like his good friends at the student loan company Nelnet.

As The New York Times first reported, Bruning is allowing Nelnet to renege on a $1 million settlement the company reached with his office in April of this… more

Open the Lockbox

Education Policy — Wed, 01 Aug 2007 03:32:00 -0400

In June, we floated a proposal that would require the wealthiest colleges and universities to spend a minimum amount of their endowments to help increase enrollment of low-income students. After taking a closer look at just how inadequately the most affluent private colleges are serving these students, we are even more convinced of the need for such a policy.

Banking on Ben (Nelson) and (Richard) Burr

Education Policy — Thu, 19 Jul 2007 14:13:00 -0400

Congress is inching closer to slashing overly generous subsidies the government provides student loan banks and increasing need-based student aid by a concomitant amount. Last week, the House approved a budget reconciliation bill that would reduce bank subsidies by $19-billion over five years and redirect the savings to expanded grant aid for financially-needy students and lower interest rates for undergraduate student loan borrowers. Today, the focus shifts to the United States Senate, which began debate yesterday on its own… more

When Work Doesn't Pay

Education Policy — Tue, 17 Jul 2007 01:40:00 -0400

Financing a college education isn't easy for anybody these days, but it's an especially Herculean task if you're a working-class student living paycheck to paycheck. The obstacles to attending college are high, and the more you have to work to support yourself and your family, the less help you can expect to receive from the government in paying for college.

A new study by The Institute for Higher Education… more

NEWS SCOOP: Sallie Mae Spending Spree to Buy Political Influence

Education Policy — Wed, 11 Jul 2007 15:44:00 -0400

You can do a lot of things with $108,000 — send close to 50 students to community college for a year, fund 50 Pell Grants or donate 6,033 copies of the forthcoming Harry Potter book to your local school — to name just a few. But Sallie Mae is hoping $108,000 can buy it the hearts and minds of 36 key Democratic lawmakers.

As Higher Ed Watch reported yesterday,… more

Sallie Mae's Plan of Attack

Education Policy — Tue, 10 Jul 2007 09:53:00 -0400

Shortly after the Democrats won control of Congress last November, the student loan giant Sallie Mae laid out a strategy for itself -- and a blueprint for the rest of the loan industry to follow -- to protect the cushy subsidies lenders receive for making government-backed loans to students.

This plan, which was obtained by Rep. George Miller (D-CA) and can be read… more