Bill seeks more transparency of higher education costs
Amanda Erickson - Chicago Tribune
Issue date: 7/2/08 Section: News
WASHINGTON-Thirteen thousand dollars.
That's the average cost of a year of college for in-state students. Make it more than $32,000 for those attending private schools.
But because of complicated financial aid formulas, what undergraduates really pay for their degree is a much more complex equation. Now Congress is trying to take the mystery out of the forever rising costs of higher education by mandating that colleges provide students and their parents more information about how much the average student pays for school, what kind of tuition help they might be able to secure and which universities offer the best bang for the buck. Congress is also calling for an annual "blacklist" of schools with the steepest cost increases.
Critics wonder whether the measures will provide real financial relief or create extra paperwork for colleges.
The measure is now in committee as lawmakers seek to iron out the differences between House and Senate bills. If approved, it would create an online database with information on how much colleges cost and what an average student would end up paying after financial aid is doled out. The site would also provide data on schools' graduation rates, and faculty and student demographics, much as numerous college guide books already do.
The federal report would also highlight the schools whose costs have gone up the least and the most. Universities with the biggest increases would be required to explain to Congress how they would cut future costs.
The form the government uses to calculate financial aid would be reduced from seven pages to two, a move that will save time for students and parents. The bill also proposes a pilot program that would provide students a college aid estimate during their junior year of high school, rather than senior year. That would give families an earlier idea of how much assistance they might receive.
Higher ed goes higher
This legislation comes on the heels of other federal efforts to reduce the cost of loans. In 2007, Congress passed a law cutting the interest rate on federal student loans in half over the next four years. Students who have worked in public service for at least 10 years after graduation may also have the rest of their debt forgiven.
That's the average cost of a year of college for in-state students. Make it more than $32,000 for those attending private schools.
But because of complicated financial aid formulas, what undergraduates really pay for their degree is a much more complex equation. Now Congress is trying to take the mystery out of the forever rising costs of higher education by mandating that colleges provide students and their parents more information about how much the average student pays for school, what kind of tuition help they might be able to secure and which universities offer the best bang for the buck. Congress is also calling for an annual "blacklist" of schools with the steepest cost increases.
Critics wonder whether the measures will provide real financial relief or create extra paperwork for colleges.
The measure is now in committee as lawmakers seek to iron out the differences between House and Senate bills. If approved, it would create an online database with information on how much colleges cost and what an average student would end up paying after financial aid is doled out. The site would also provide data on schools' graduation rates, and faculty and student demographics, much as numerous college guide books already do.
The federal report would also highlight the schools whose costs have gone up the least and the most. Universities with the biggest increases would be required to explain to Congress how they would cut future costs.
The form the government uses to calculate financial aid would be reduced from seven pages to two, a move that will save time for students and parents. The bill also proposes a pilot program that would provide students a college aid estimate during their junior year of high school, rather than senior year. That would give families an earlier idea of how much assistance they might receive.
Higher ed goes higher
This legislation comes on the heels of other federal efforts to reduce the cost of loans. In 2007, Congress passed a law cutting the interest rate on federal student loans in half over the next four years. Students who have worked in public service for at least 10 years after graduation may also have the rest of their debt forgiven.
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