Page 357 - Crisis in Higher Education

Appendix A • 327

2. State and local governments should use their funding as a mech-
anism to pressure public colleges and universities to lower costs
and improve outcomes. Public colleges and universities would be
required to:
a. Prepare a five-year rolling plan to reduce administrative expenses.
b. Use fees for nonacademic expenses, make fees payable at the
students’ option, and require learning-related activities to be
paid by tuition dollars.
c. Take financial responsibility for providing books and other
learning materials.
3. State and local governments can condition their funding for higher
education on meeting mission-appropriate goals for graduation
rates, time to completion, and job placements.
4. States have a hodgepodge of financial aid grants that seem to be
politically motivated. Unless there are compelling reasons, state
funds that support these grants should become part of the state’s
general appropriation.
5. States also make appropriations for research as well as agriculture
and medical education. These appropriations must have careful
oversight with specific outcomes identified.
6. Universities should disengage from outreach and engagement until
and unless there is a specific funding source to support it. States
provide no funding. Funds for tuition, fees, research, room, and
board are intended for these activities and not for outreach and
engagement.
7. Federal Pell Grants and other grants should be maintained, but
hopefully demand for them declines as the economy improves,
saving for education increases, and universities find ways to reduce
costs.
8. Student loans must be reduced substantially by reining in demand
so students would want and need to borrow less. Students need to
understand their repayment obligation, so they must prepare a stu-
dent borrowing and repayment plan (SBRP) that specifies how much
they will borrow, the use of these funds, and what they are willing to
forego to make payments.
9. Work-study jobs often do little more than put money in students’
pockets. Universities must provide evidence that students are
learning something and/or doing work that has value or close the
program and roll the funds into the Pell Grant program.