President Barack Obama and America’s Public Colleges and Universities

President Barack Obama has outlined a series of public policy proposals related to American public higher education, stressing the need to make higher education more affordable and accessible, and seeking to enhance higher education's role as a catalyst for American economic competitiveness. In addition, the President has also linked education with a growing need for participation in public service and civic engagement. The following topics are those deemed to be key to AASCU members highlighted by President Obama either during his term in office or the campaign.

For more information on AASCU policy positions click here .

President Obama's policy proposals and actions to date on key higher education issues

College Affordability/Financial Aid
College Access
College Readiness
University-based Research
Fiscal Sustainability for Public Postsecondary Education
Campus Modernization
Teacher Preparation
Supporting Two-Year Academic Programs

Disclaimer: The American Association of State Colleges and Universities (AASCU) is a designated 501(c)(3) not-for-profit entity. The organization is non-partisan and does not endorse political candidates.

President Obama gave his first speech focused on higher education at the University of Texas-Austin on August 9, 2010. The President has established his goal to lead the world with the highest proportion of college graduates by 2020. President Obama's speech and the transcript can be found here .

COLLEGE AFFORDABILITY/ FINANCIAL AID

Action
Congress passed and the President recently signed into law H.R. 4872, the Health Care and Education Reconciliation Act of 2010. This legislation will end the Federal Family Education Loan program and require that all federal loans be originated through the Direct Loan program. Savings from the transition to DL will be used to fund the Pell Grant program, invest in minority serving institutions, improve the Income Based Repayment (IBR) program, and fund additional Access and Challenge Grants. For more information about this legislation, please see AASCU's advisory from March.

Expanding Pell Grants for Low-Income Students
President Obama has conveyed intentions to increase the maximum Pell Grant award for low-income students and ensure that the award keeps pace with the rising cost of inflation.

Actions

In February, Congress passed and the President signed into law a continuation of the FY 2009 budget, which increased the Pell maximum grant by $119 from $5,231 to $5,350 beginning in academic year 2009.

Further, included in the President's fiscal year 2010 budget submission, there is a proposal to increase the Pell maximum award to $5,550 in academic year 2010. The proposed program would create an entitlement program, increasing by the Consumer Price Index plus 1% each year beginning in academic year 2011.

The House of Representatives introduced and passed the Student Aid and Fiscal Responsibility Act (SAFRA) which includes a provision that would provide for mandatory increases of the Consumer Price Index +1% over the previous year's Pell maximum award coupled with a base funding amount through the appropriations process. SAFRA passed the House of Representatives on September 17, 2009 and is awaiting action in the Senate.

In his Fiscal Year 2011 budget, President Obama again proposed to fully funding the Pell Grant program through mandatory spending and projected the maximum award would be $5710. For further details about the President's proposed budget, please see our advisory.

Implementing a Federal Tax Credit to Offset Higher Education Expenses

During the presidential campaign, Barack Obama proposed the American Opportunity Tax Credit, a universal and fully refundable tax credit that will address the first $4,000 of expenses related to a college education for most Americans. The intention of the proposed credit is to cover two-thirds the cost of tuition at the average in-state public college or university and make community college tuition completely free for most students. The proposal calls for the delivery of the credit to take place at the time that tuition is due, as opposed to via the following year's tax returns. Recipients of the credit will be required to conduct 100 hours of community service during the school year or summer months. ( Source ) ( See Video )

Actions

The American Recovery and Reinvestment Act of 2009 (ARRA) signed into law by President Obama in February 2009 includes a provision for a tax credit up to $2,500 of college expenses that include tuition, fees, and course materials. Up to 40 percent ($1,000) is refundable, meaning that those who do not owe on their taxes could receive the credit in the form of a rebate. The American Opportunity Tax Credit is effective for FY 2009 through 2011. The president has indicated his intent to revise and make the tax credit permanent in future legislation.

President Obama called for making the American Opportunity Tax Credit permanent. In addition, the President's budget calls for the expansion to cover four years. T he credit is currently available for eligible expenses for only two years of a postsecondary education . To read the President's full State of the Union address, please click here. AASCU's response to the State of the Union can be found here.

Simplifying the Financial Aid Process
President Obama seeks to streamline the financial aid process by eliminating the current federal financial aid application and enabling families to apply simply by checking a box on their tax form, authorizing their tax information to be used, and eliminating the need for a separate application ( Source ).

Actions

In June 2009, Education Secretary Arne Duncan announced a plan to simplify the student financial aid application. Duncan 's plan includes (1) a shorter and simpler online application that skips unnecessary education, (2) legislation to remove more than half of the financial questions, and (3) a web application that will let some families easily answer the remaining financial questions with IRS data.

In January 2010, students applying for financial aid for the spring semester will be able to retrieve their relevant tax information from the IRS for easy completion of the online FAFSA. The Department of Education and the IRS will continue to work to expand this option to all students.

Consolidating Federal Loan Programs
There currently exists two separate federal college loan programs: the publicly funded Direct Loan (DL) program and the Federal Family Education Loan Program (FFELP), which is privately funded but is federally subsidized and guaranteed. During the presidential campaign, Barack Obama asserted that FFELP did not provide value above and beyond that provided by the DL program, and thus recommended eliminating FFELP and using only the DL program. ( Source ) ( See video )

Actions

In his initial fiscal year 2010 budget submission to Congress, President Obama called for all federal loans made after July 1, 2010 to be made through the Direct Lending Program. The Department would conduct all originations and servicing would be contracted on a competitive basis.

A provision addressing this issue is included in the Student Aid and Fiscal Responsibility Act (SAFRA), which passed the House of Representatives on September 17, 2009. The bill awaits action in the Senate.

Broadening the Perkins Loan Program
President Obama has requested a change in the Perkins Loan program within his fiscal year 2010 budget. Currently, there is approximately $1 billion provided to students through this program each year at roughly 1800 participating institutions. The proposal would increase this funding to $6 billion each year and participation would occur at approximately 4400 colleges and universities. For further information click here.

Actions

In finalizing the 2010 budget resolution, the Congress tasked the education committees to find savings. As such, the House has passed the Student Aid and Fiscal Responsibility Act (SAFRA), a bill that would make significant changes to higher education programs, including expanding the Perkins Loan program to include more colleges and universities. The Senate is expected to consider this legislation in October 2009.

In his Fiscal Year 2011 budget, President Obama reiterated his FY 2010 budget by again propos ing $6 billion to fund the Perkins Loan Program . For further details about the President's proposed budget, please see our advisory.

Promoting College Serve-Study
The President's campaign acknowledged that many colleges and universities have failed to meet the 7 percent threshold of community service jobs for the Federal Work-Study program. President Obama has stated support for reforming the Federal Work-Study program by raising the service threshold to 25 percent so that 200,000 college students complete part-time public services while in school and help colleges and universities reach the goal of 50 percent in serve-study jobs; a reform advanced by both Presidents Bill Clinton and George W. Bush, as well as retired General Colin Powell ( Source ).

Actions

To date no proposals have been announced or formal actions taken

Helping Families Save for College
The President's Middle Class Task Force has directed the Department of the Treasury to investigate improvements to 529 savings plans to help families save for college more effectively and efficiently.

Actions

The Treasury Department released a report on September 9, 2009 analyzing Section 529 College Savings and Pre-Paid Tuition Plans and made recommendations for making these plans more effective and reliable for American families to save for post-secondary education. ( Source )

COLLEGE ACCESS

Facilitating college access and citizenship for undocumented students
During the campaign, Mr. Obama expressed strong support for facilitating access to postsecondary education and permanent residency for undocumented students through the passage of the Development,, Relief and Education for Alien Minors Act (DREAM) Act. The proposed legislation would provide certain immigrant students who graduate from American high schools, have demonstrated good character, arrived in the U.S. as children, and have been in the country continuously for at least five years prior to the bill's enactment, the opportunity to earn conditional permanent residency. ( See video )

Actions

In March 2009, the DREAM Act was introduced in the House of Representatives by Representative Berman (CA-28) and in the Senate by Senators Durbin (IL) and Lugar (IN). The Obama Administration has not offered a formal statement on the legislation.

Partner with states to improve college completion
President Obama recognizes that the national higher education agenda has not focused on college completion.

Actions

The President's FY2010 budget includes a five-year, $2.5 billion fund aimed at improving college success and completion, particularly for students from disadvantaged backgrounds. This fund will focus on research about what works in increasing college enrollment and graduation and disseminate these best practices. States would be able to use a portion of the funds to continue college outreach and information activities now supported through subsidies in the FFEL loan program ( Source ).
The Student Aid and Fiscal Responsibility Act (SAFRA), which passed the House in September 2009, would provide $3 billion over 5 years through the College Access and Completion Initiative Program to focus on retaining and graduating students from post-secondary education programs.

COLLEGE READINESS

Improving College Readiness
During his campaign for president, Mr. Obama pledged to provide $25 million annually in matching funds for states to develop Early Assessment Programs. These programs provide the opportunity for 11th grade students to take a voluntary test to identify deficiencies in subject-specific readiness needed for college, giving them time to address needed improvements during their senior year. The federal funds would also be used to promote state efforts to raise awareness about the availability of federal and state financial aid programs ( Source ).

Actions

To date no proposals have been announced or formal actions taken.

Supporting College Outreach Programs
The Obama/Biden campaign pledged support for GEAR UP, TRIO and Upward Bound to encourage more young people from low-income families to consider and prepare for college. ( Source )

Actions

To date no proposals have been announced or formal actions taken

UNIVERSITY-BASED RESEARCH AND TECHNOLOGY TRANSFER

Investing in University-based Research
The Obama/Biden campaign stated support for expanding university research and providing new research grants to the most outstanding early-career researchers in the country. ( Source )

Actions

President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA) into law in February 2009, providing $10 billion for the National Institutes of Health, $3 billion for the National Science Foundation, $2 billion for the Department of Energy, $580 million for the National Institute of Standards and Technology, and $280 million for the National Oceanic and Atmospheric Administration. The Administration, through the guidance that has been issued on disseminating these funds, has prioritized supporting early-career researchers with a portion of these funds.

PROVIDING FISCAL SUSTAINABILITY FOR PUBLIC POSTSECONDARY INSTITUTIONS

Preventing Major Cutbacks in Public Education Funding

The Obama administration supported Congress in setting aside funds to prevent major cut backs at the state level for both K-12 education and higher education.

Actions

The State Fiscal Stabilization Fund, included in ARRA, providing funds directly to states to make up spending reductions as a result of poor economic conditions specifically for education, including post-secondary education. For fiscal years 2009, 2010, and 2011, approximately $48.6 billion will be available to the governors to assist in restoring depleted state accounts for higher education and elementary and secondary education. These funds will go out by a population-based formula. For further information from the Department of Education, click here .

CAMPUS MODERNIZATION

Boosting School and University Modernization Efforts

President Obama called for the inclusion of monies for “shovel ready” renovation and modernization construction projects in the February 2009 federal stimulus legislation.

Actions

Funds provided to institutions of higher education through the State Fiscal Stabilization Fund will be available for the modernization, repair, or renovation of buildings. Applications for the states to apply for funds during Phase 1 were due in July and awards have been announced. Please see the Department of Education's website for a complete list of awards to states made under the State Fiscal Stabilization Fund.

TEACHER PREPARATION

Action
The Obama Administration released A Blueprint for Reform: The Reauthorization of the Elementary and Secondary Education Act in March 2010. This document outlines the Administration's priorities for reauthorizing ESEA, which is likely to include changes to teacher quality requirements and teacher preparation programs. The Blueprint can be accessed here.

Expand service scholarships to underwrite high-quality preparation for teachers
The Obama/Biden campaign pledged to create substantial, sustained Teaching Service Scholarships that completely cover training costs in high-quality teacher preparation or alternative certification programs at the undergraduate or graduate level for those who are willing to teach in a high-need field or location for at least four years.

Actions

To date no proposals have been announced or formal actions taken

Performance-Based Teacher Education
Mr. Obama's campaign vowed to require professional accreditation of all programs preparing teachers, with a focus on evidence regarding how well teachers are prepared. The campaign also stressed building a high-quality, nationally available teacher performance assessment that measures actual teaching skill in content areas. The proposed teacher performance assessment will incorporate challenging teaching standards, require evidence of teacher performance and outcomes in promoting student learning, provide data that can be used for the accreditation process and facilitate teacher mobility across states.

Actions

To date no proposals have been announced or formal actions taken

Make Science and Math Education a National Priority
The Obama/Biden platform underscored the need for improving science and math education. The proposed Teaching Service Scholarships will prioritize recruiting math, science and technology degree graduates. In addition, the campaign pledged to work with governors to create flexible and workable systems for the states to achieve the goal of ensuring all children have access to strong science curriculum at all grade levels. Further, President Obama called for changes in science assessments. (Source) .

Actions

The American Recovery and Reinvestment Act of 2009 includes $100 million for the Teacher Quality Enhancement Program as well as an additional $200 million for the Teacher Incentive Fund Program.

SUPPORTING TWO-YEAR ACADEMIC PROGRAMS

The American Graduation Initiative

The President has set a goal of creating 5 million additional community college graduates by 2020, including students earning certificates and associate degrees or who continue on to graduate from four-year colleges and universities. The President's American Graduation Initiative is a 10-year, $12 billion plan aimed at increasing the number of two-year graduates and enhancing America 's global competitiveness. The $12 billion would be distributed into a competitive grant “challenge fund” to spur innovation and reforms ($9 billion), a modernization fund for community college facilities ($2.5 billion) and expansion of online education ($500 million) ( See video ).

Actions

The Student Aid and Fiscal Responsibility Act (SAFRA), passed by the House in September 2009, would authorize the American Graduation Initiative program to assist low income and non-traditional students in completing two-year degree programs. It includes programs at community colleges and two-year programs offered at four-year public institutions, as well as supporting four-year public institutions that partner with a community college.

Community College Challenge Fund

President Obama has outlined a plan to provide new, competitive grants to community colleges and states to innovate and expand reforms. Such reforms include enhancing business and workforce partnerships, expanding course offerings and dual enrollment at high schools and universities, improving remedial and adult education programs, and supplying comprehensive, personalized services to students to help them plan their education and careers.

Actions

This legislation would also create a competitive grant program for community colleges to develop partnerships with local employers to meet growing local workforce needs.

Modernize Community College Facilities

President Obama recognizes that many community colleges face steep backlogs of deferred maintenance and lack the modern facilities and equipment needed to train students in technical and other growing fields. The President has called for a 10-year, $2.5 billion appropriation to catalyze $10 billion in community college facility investments.

Actions

SAFRA includes $2.5 billion in grant funds to states for the construction, modernization, renovation, or repair of community college facilities.

Create a New Online Skills Laboratory

President Obama is seeking to enhance the role of online education with interactive software that can tailor instruction to individual students and help reach students in rural areas. As devised, Teams of experts in content knowledge, skills and credentials, will develop the Online Skills Laboratory. The Departments of Defense, Education, and Labor will work together to make the courses freely available through one or more community colleges and the Defense Department's distributed learning network, explore ways to award academic credit based upon achievement rather than class hours, and rigorously evaluate results. The President has requested a $500 million funding allocation for this program over ten years.

Actions

SAFRA would create a grant program to expand online learning opportunities for students for postsecondary readiness and success.

Other Selected Resources
The White House
U.S. Department of Education
Recovery.gov (American Recovery and Reinvestment Act of 2009)
THOMAS (Library of Congress) and Other Helpful Links
FY 2010 Fact Sheet---"Opening the Doors of College and Opportunity"
Student Assistance Programs: Highlights of the President's 2010 Budget
Middle Class Task Force Staff Report: Financing the Dream: Securing College Affordability for the Middle Class
White House Fact Sheet on Higher Education
White House Fact Sheet on Student Loans
White House Fact Sheet on Pell Grants
White House Fact Sheet on Community Colleges

AASCU's Public Policy Priorities
AASCU's 2009 Public Agenda