House Education Subcommittee Examines College Cost

On Thursday, July 10, 2003, Rep. Howard P. "Buck" McKeon (R-CA), Chair of the House 21st Century Competitiveness Subcommittee, held a hearing to discuss the rise in the cost of higher education, explore the reasons for the increase, and examine what steps can be taken to combat the effects of the increase.

Chairman McKeon's opening statement went right to the heart of his plans for legislation that would address this issue. He pointed out that even though the federal government has increased its education funding significantly over the past decade, other variables are having an impact. The states have decreased their funding due to budget constraints, and the institutions themselves are trying to address rising demands in operating costs. Chairman McKeon believes this is the time for the federal government, the states, institutions of higher education, the lending community, parents and students to take a stronger role in addressing this crisis.

Dr. Sandy Baum, Professor of Economics at Skidmore College, stated that one of the main concerns surrounding the cost of education is that grant aid is not keeping up with the rising costs of education, leaving lower-income students unable to afford college even with assistance. She thinks the federal government should provide incentives to states and institutions to improve college access.

Dr. Rolf Wegenke, President and Chief Executive Officer, Wisconsin Association of Independent Colleges and Universities (WAICU), discussed the collaborative efforts of 20 private colleges and universities to consolidate and cut costs. The major projects have addressed the administrative costs of technology, financial aid and health care.

Mr. Scott Ross, Executive Director, Florida Student Association (FSA), focused on the fact that rising costs of education directly affect the consumer - the students - and take away from the overall goal of receiving a higher education. Ross stated that "while recent increases in Pell appropriations have helped stabilize overall loan-grant balance in the aid system, the purchasing power of the Pell grant remains far below what it used to be."

Dr. Patrick Kirby, Vice President and Dean of Enrollment Services, Westminster College, discussed their success in lowering tuition, increasing enrollment and gaining revenue. At the same time, he said their model would probably not work for most colleges and universities in the country.

Dr. Carol Twigg, Executive Director, Center for Academic Transformation, spoke of potential solutions in holding down the rising college costs. These include technological solutions that can transform curriculum through information technology without sacrificing program quality. This program demonstrates how effective and efficient use of information technology can improve student learning and reduce instructional costs.

For more information on this hearing, please visit the Press section of the U.S. House Education and the Workforce website, www.edworkforce.house.gov.

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