News Release
November 03, 2005
Multiple solutions to high college costs recommended at Washington DC Summit
Washington, D.C. - Sponsored by Lumina Foundation for Education in collaboration with the James B. Hunt, Jr. Institute for Educational Leadership and Policy, the College Costs: Making Opportunity Affordable summit held on November 2 in Washington spotlighted several solutions to the rising cost of higher education. Presented in partnership with nearly 60 organizations representing K-12 and higher education, business, philanthropy, government, students and parents, the event launched a multi-year initiative to move promising practices into action.
The proposed solutions were presented to Lumina Foundation following the publication of the Foundation's policy brief, Collision Course: Rising Costs Threaten America's Future PDF, which outlined the factors contributing to rising costs and suggested multiple strategies to address the problem. The more than 350 participants who attended the summit discussed both causes and remedies, and steps that Lumina and its partner organizations can take to foster continuing dialogue and change.
"These recommendations represent innovative approaches for solving a problem that is affecting more than 400,000 qualified students every year," said Lumina Foundation President and CEO Martha Lamkin. "No ‘silver bullet' exists to reduce college costs, but these collaborative approaches show real promise. Our aim is to highlight these and stimulate even more actionable ideas."
Speakers representing federal and state policymakers, the business community and higher education were featured. The luncheon speaker was Thomas L. Friedman, columnist for The New York Times and author of the highly acclaimed, The World Is Flat: A Brief History of the Twenty-first Century. Other presenters included U.S. Senator Richard Lugar, Tom Luce, Assistant Secretary, Office of Planning, Evaluation and Policy Development at the U.S. Department of Education, former North Carolina Governor James B. Hunt, Jr. and former Michigan Governor and current National Association of Manufacturers president John Engler.
The proposed solutions, which ranged from technological innovations to tuition reimbursement to outsourcing and more, sparked lively debate among the participants and speakers. University of Virginia Curry School of Education Dean David Breneman noted that while all of the proposed solutions were feasible, all must ensure that cost savings for institutions are passed on to students in the form of lower tuition and fees. University of Maryland Chancellor William Kirwan noted that recent rises in tuition and fees have outpaced inflation and noted that children from families in the upper income quartile have an 80 percent chance of earning a four-year degree, while those in the lowest quartile have only a 10 percent chance. He strongly recommended that financial aid programs be realigned to families with high financial need, as opposed to the merit-based approaches, which have proliferated in recent years.
Lumina representatives noted that these solutions are "a good beginning" and that more will undoubtedly be spotlighted in the coming months and years. Areas of special interest include approaches that will reduce the amount of time students take to earn four-year degrees (many are now taking six years or longer), and higher education delivery systems that improve efficiency and lower costs.
Luncheon speaker Friedman spoke of declining college graduation rates as a crisis with serious ramifications on the nation's ability to build and maintain a workforce that can compete with highly skilled employees from other countries. Tom Luce from the U.S. Department of Education discussed the federal government's desire to spark a dialogue on accountability in higher education similar to that fostered by the 1984 publication of "A Nation at Risk," which focused on the need for higher K-12 student achievement.
Brief topical summaries of the Solutions Papers are listed below. To view the papers in their entirety, and to learn more about College Costs: Making Opportunity Affordable, please visit www.collegecosts.info.
Outsourcing of non-mission-critical functions: A solution to the rising cost of college attendance
This paper discusses outsourcing as one solution to the college cost crisis. It briefly reviews why institutions consider outsourcing, the current use and trends, potential new areas and challenges, and solutions to address those challenges. It is authored by Mary F. Bushman, vice president for public policy and communications in the Commercial Services Group at ACS Inc. and John E. Dean, a partner in the Washington, D.C., law firm of Dean Blakey, which specializes in representing clients involved in federal higher education programs.
Improving quality and reducing costs: The case for redesign
This paper examines the significant benefits of technology for lowering college costs, boosting the efficiency of course delivery and strengthening retention. It reveals results of a five-year National Center for Academic Transformation (NCAT) project that enabled participating institutions to reduce their costs more than 37 percent while maintaining and boosting student learning. It is authored by NCAT President and CEO Carol A. Twigg.
Shared solutions: The Kansas perspective
This paper focuses on the benefits of tuition reimbursement programs, both for lowering college costs for the student and for strengthening the workforce, particularly in areas where there is a high need for highly skilled workers, such as the medical profession. It is authored by Lana Oleen, former majority leader of the Kansas Senate; Debra Hollon, senior fiscal analyst for the Kansas Legislative Research Department, and; Diane Lindeman, director of student financial aid for the Kansas Board of Regents.
Avoiding a collision course: A state policy agenda for increasing high school students' college readiness
This paper addresses approaches for ensuring that more students graduate from high school college-ready, thereby lowering college costs through savings in remediation, and enabling more students to graduate in four years. It is authored by Kristin D. Conklin, senior policy analyst in the Education Division of the National Governors Association Center for Best Practices.
A question of effectiveness: Michigan's solutions to the college cost issue
This paper reviews two of Michigan's state-supported initiatives to contain college costs. They include a state income tax credit for students attending colleges that limit tuition increase rates to the rate of increase for the U.S. Urban Consumer Price Index (CPI), and the return of most of a 2003 mid-year cut to public colleges that preserved the tax credit eligibility. It is authored by Timothy M. Kuehnlein Jr. and Olin Joynton. Kuehnlein is an instructor of political science and history at Alpena Community College, where Joynton serves as president.
Approaching the dilemma from both sides: PROMISE credits for young students and creating a campus environment more conducive to cutting costs
This paper reviews a concept for the PROMISE program, through which the federal government would award credits annually to students who are eligible to free-and-reduced price school lunch programs or on temporary public assistance. The credits would be used for postsecondary education expenses, and would be based on family income levels over the long-term, rather than just the last year before the child applies to college. The paper also discusses how to negotiate conflicts between academic mission and the financial bottom line. It is authored by Sandy Baum, a professor of economics at Skidmore College, is a senior policy analyst with the College Board.
Tipping point: Controlling college textbook prices
Referencing the 79 percent price increase for attending the University of California between 2001-2002 and 2005-2006, this paper addresses the need to "reduce smaller, ancillary costs that act as a ‘tipping point' for students on the economic margins' by focusing on textbook costs. It is authored by Merriah S. Fairchild, a higher education advocate with the California Public Interest Research Group (CALPIRG) Education Fund, which promotes affordable education, consumer protection and good government in California.
Seven Steps: Ways to reduce instructional costs and improve undergraduate and graduate education
This paper focuses on seven practices designed to make undergraduate and graduate education more affordable, and the delivery of education more efficient. It is authored by Bill Coplin, professor of public affairs at the Maxwell School and the College of Arts and Sciences at Syracuse University. Coplin is the author of 10 Things Employers Want You to Learn in College (Ten Speed Press, 2003).
Toward a new way of thinking about quality, productivity and college costs
This paper focuses on new models for the delivery of higher education, including cross-institutional collaboration to develop courses, better use of technology and distance learning. It is authored by Dewayne Matthews, senior research director at Lumina Foundation for Education, who leads the Foundation's research on student access and success in postsecondary education.
Other ideas of note: Thoughts on cost-cutting gleaned from unpublished essays
Lumina Foundation has also compiled an essay with a collage of promising solutions taken from several solution papers that were submitted.
Lumina Foundation for Education, an Indianapolis-based, private, independent foundation, strives to help people achieve their potential by expanding access and success in education beyond high school. Through grants for research, innovation, communication, and evaluation, as well as policy education and leadership development, Lumina Foundation addresses issues that affect access and educational attainment among all students, particularly underserved student groups, including adult learners. The Foundation bases its mission on the belief that postsecondary education remains one of the most beneficial investments that individuals can make in them, and that society can make in its people.
