Another politician proposes a plan for “comprehensive college affordability,” and another plan is revealed that would exacerbate the problem.
The newest proposal comes from Representative Tammy Duckworth (D-IL), according to the Daily Kos. Her “In the Red Act” offers the usual talking points from the Democratic Party, promising an expanding of student aid, more state and federal funding, refinancing student debt, and a vow to “increase accountability” for colleges.
“Every day, an affordable education is growing further and further out of reach for middle-class families, limiting young Americans’ prospects for the future and threatening both our economic growth and global competitiveness,” Duckworth said. “Our In the Red Act will make the common-sense reforms we need to make college more affordable—which should be one of our top priorities in this nation.”
Specifically, the legislation would let students refinance their student loan debt for lower interest rates, increase Pell Grants by $1,300 each, and create a “federal-stare partnership” to make community colleges tuition-free. The legislation also mentions “adopting institutional reforms and innovative practices that improve outcomes,” but detail is not given.
Duckworth goes long on promises, but comes up short on solutions.
Her approach ignores that, though federal student aid has continued its irresistible increases, that aid has driven tuition costs to new heights.
Student loan interest rates are already lower than the market rate. The federal government provides the loans, then effectively subsidizes their interest rates. Furthermore, refinancing those interest rates usually saves students only a few hundred dollars, and those benefits fall disproportionately on richer students. Low-income students carry less debt because, on average, they’re attending two-year schools more often and carrying less debt. The biggest beneficiaries are graduate students and professional students pursuing law or medical degrees.
Nor are Pell Grants a promising path toward a degree. Pell Grant recipients are less likely to graduate, and the program has ballooned to 8.2 million in 2014-2015, from 5.3 million a decade ago. Originally targeted at low-income students, the grant has become a middle-class entitlement.
Her plan to make community college affordable is, likewise, folly. The Obama administration has announced a $100 million funding initiative for community college, but it’s ignored the abysmal graduation rates of those institutions. Community college tuition is already a fraction of a four-year college’s price. The completion problem for community college students isn’t tuition, but living expenses and part-time attendance.
Duckworth’s proposals might get credit among Democratic circles for throwing more buckets of money toward higher education, but it’s unlikely to stem the tide of college costs, or pressure institutions to focus on results. Instead, it’ll fuel the bonfire of higher education largesse.
