Recently in Postsecondary Education Category

Finding and Fixing Flaws in Financial Aid Policy

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Recent reports underscore what many argue are serious problems with current financial aid policy. Lawmakers debate about how to handle the soon-to-expire low interest rate on federal student loans. Meanwhile, public and private colleges and universities have awarded more merit-based than need-based scholarships in recent years, leaving low-income students to seek other options or saddle large amounts of debt. As noted by Susan Dynarski and Judith Scott-Clayton, important questions to ask in addressing such issues are how effective current policies are in increasing student enrollment, performance, and completion, and what influence financial aid has on students' choices following graduation.

 

From their review of the research on financial aid, Dynarski and Scott-Clayton draw four important lessons for lawmakers, colleges, and universities. First, money matters. Financial aid increases student enrollment and may improve persistence and completion. Second, all aid programs are not equally effective. Studies show that personalized information and assistance in the financial aid process can increase college entry. Third, academic incentives are helpful. Achievement-based financial aid may increase college performance and completion rates. Finally, the design of student loans may be improved to be clearer about student risks and repayments upfront.

 

Financial aid had become increasingly important for college enrollment and completion. Lawmakers and college administrators should draw upon the best evidence as policy changes continue to develop. To review the latest evidence on postsecondary financial aid policy, see the newest issue of Future of Children, Postsecondary Education in the United States.

College at a Crossroads

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As the latest issue of the Future of Children reports, higher education in the US is changing dramatically. On the one hand, access to college has expanded at a remarkable rate. On the other hand, scores of students are finishing high school unprepared for college work. Meanwhile, today's economy has left many public colleges and universities strapped for resources and unable to meet student demand. Thus, many students, particularly those from low-income families, are forced to either seek an alternative route or drop out.

 

One rapidly growing option for students is for-profit colleges. Also known as proprietary colleges, they often exist as large national chains led by online institutions. Future of Children authors David Deming, Claudia Goldin, and Lawrence Katz explain that for-profit colleges seem to be most helpful when they offer short, well-defined programs offering a clear path to a specific occupation. While these programs have grown to efficiently meet student demand as public institutions have struggled, their students carry higher levels of debt and are more likely to default on loans. Indeed, much of the revenue these institutions rely on comes from federal student aid. Moreover, the rate of return for these students is lower. Upon leaving school, they are more likely to be unemployed and have lower earnings than students at other institutions.

 

To keep up with student demand, many state systems and community colleges have sought to expand access to online learning programs. The Babson Survey Research Group estimates that by 2010, 31 percent of college and university students were enrolled in at least one online course. As Marketplace reports, more selective institutions may also begin offering more options for online learning. Examining the research, Bradford Bell and Jessica Federman find that online learning can be an effective tool in higher education, insofar as it creates conditions that are conducive to learning specific content. See the latest research on e-learning in the new issue of the Future of Children, Postsecondary Education in the United States.

Complex College Choices in a Changing Economic Climate

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In his first term, President Obama set a goal that the US would once again have the highest proportion of college graduates in the world by 2020. However, choosing whether to go to college, which school is best and how much college to peruse has become increasingly complex for students and families. In the newest issue of the Future of Children, authors Philip Oreopoulos and Uros Petronijevic write that in today's economy, college tuition rates are higher than ever, student debt is larger than ever, and many students take longer than ever to graduate. Meanwhile, technology is changing the playing field at a rapid pace. Some have to choose between an elite school and a more affordable one, while others seek online flexibility as they juggle work and family.

 

The New York Times reports that parents often see top-tier universities as the way to give their children the best chance at success, but little evidence has demonstrated a link between college selectivity and later earnings. Oreopoulos and Petronijevic find that earnings potential varies with college major and is largest for those with post-graduate degrees. Moreover, community college programs may be best for students who don't want to or can't complete a four-year degree. They stress that students and their families need help to navigate the financial aid and college decision process, taking into account the likelihood of completion and expected costs and debts. "As difficult as it is, completing such an assessment before reaching a decision is key to making the most out of college."

 

An increasingly relevant factor in college decisions is the availability of online education. The New York Times highlights the efforts of many institutions to provide online learning opportunities in order to address problems of limited seating due to state budget cuts, as well as a high demand for remedial coursework for new undergraduates. Future of Children authors Bradford Bell and Jessica Federman find that online college programs can be an effective alternative to traditional classroom teaching if they are rich in content and have a high level of interactivity. Experimental research should continue to investigate how these attributes influence different types of learning.

 

For more discussion on this topic, check out the latest issue of the Future of Children, Postsecondary Education in the United States. Also see the issues Opportunity in America, America's High Schools and Transition to Adulthood.

College-Bound Children of Immigrants

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Though the nation's financial woes and other recent changes have left net Mexican migration to the US at around zero, past decades have seen rapid growth in the population of immigrants, including children and adolescents who are now approaching adulthood. Of the more than 68 million young adults in the US in 2010, about 30 percent were foreign-born or had foreign-born parents. Moreover, young adults made up about half of the estimated 11.6 million undocumented immigrants in 2008.

 

As these young people prepare to enter the labor market, those who are undocumented often experience greater adversity, even though many have grown up on US soil. Future of Children author Marcelo Suarez-Orozco tells NBC Latino that immigrant parents are motivated to offer their children better opportunities, but those who are undocumented are blocked from access to supports and services that children could benefit from. For example, Silvia Rodriguez, who immigrated to the US with her parents at age two, learned what it meant to be undocumented as she prepared for college. "When it came time to apply for scholarships and financial aid, that was the moment it really, really hit me," she said.

 

Future of Children authors Robert T. Teranishi, Carola Suárez-Orozco, and Marcelo Suárez-Orozco argue that increasing immigrant children's educational attainment and economic productivity should be a national priority and that community colleges are an important means to this goal. They suggest outreach programs to help prospective students learn about the application and financial aid processes. They also argue that researchers and community colleges should collaborate to find and implement the most effective strategies for intervention programs. For the latest research on this topic, see the Future of Children issues on Immigrant Children and the Transition to Adulthood.

Underprivleged Youth and the College Dream

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Written by Jonathan Wallace, Managing Editor.

 

According to a recent article in the New York Times, underprivileged youth who achieve their dream of enrolling in college too often end up with crushing debt and no degree to show for it. In fact, Future of Children author Susan M. Dynarski tells the Times, the gap between the share of poor Americans who earn a bachelor's degree and the share of affluent Americans who do so has grown dramatically in the past 30 years. So despite an increase in access to college for the poor and minorities, the Times concludes, college is actually serving to perpetuate social stratification rather than enhance social mobility. Dynarski weighs in on "Financial Aid Policy: Lessons from Research" in the Future of Children's forthcoming issue on postsecondary education, scheduled for release on May 7, 2013.

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