Page 216 - Crisis in Higher Education

Government’s Role in Higher Education • 187

state legislatures. Once again, these decisions are likely to be different from
one state to the next, so it is difficult to make specific recommendations.
What are the returns on this research investment? How will an investment
lead to economic growth and jobs? Having well-defined expectations for
these programs and holding people accountable are essential.

9.3.1.4 Lack of Funding for Outreach and Engagement

Whereas the other subsections under the heading “State and Local Funding”
discuss one or another aspect of support for public colleges and universi-
ties, it is important to note that no funds are identified to pay for outreach
and engagement. Chapter 5 discusses how service to the academy morphed
into outreach and engagement, where institutions of higher learning work in
the community to improve the economy and human conditions by tackling
important projects. The problem is that states and local governments do not
provide funding to support these activities. Money collected from students
and others to pay tuition, fees, room, and board are not intended to pay for
outreach and engagements. It is safe to say that students, parents, and other
third-party payers would be unhappy to know that the money they provided
for tuition was spent for other purposes. Research dollars also have a defined
purpose and should not be spent on outreach and engagement. Unless gov-
ernments are willing to provide funds to support these efforts, universities
should disengage. If they do not, it is like a tax on students, parents, and
other third parties that pays for education and research.

9.3.2 Federal Funding
Unlike state and local funding that for the most part goes directly to public
colleges and universities, most federal funding, including (1) grants, which
do not require repayment, (2) student loans, which require repayment with
interest, and (3) work-study jobs, which provide employment for students
with financial needs, is assigned directly to students. Students can use
these funds at public or private universities. Following is a description of
each program and actions that should be considered.

9.3.2.1 Pell Grants and Other Grant Programs

As shown in Table 9.3, the federal government provided $35.1 billion in
grants for 2013–2014 (not including research grants), with Pell Grants