Task Force Report: Enhancing the Value of Higher Ed Degrees

The NCSL Task Force on Higher Education has released its final three-part report featuring a comprehensive, bipartisan vision for how higher education, state policymakers and federal partners can work together to ensure more students receive degrees of value.

The report, "A State-Led Strategy to Enhance the Value of Degrees," results from a two-year study and provides a broad assessment of the state and federal roles in higher education, including urging Congress to reauthorize the Higher Education Act.

The task force-29 legislators and four legislative staff from 32 states-is the first national convening of legislative leaders on higher education issues since NCSL's Blue Ribbon Commission on Higher Education in 2006. It is co-chaired by Sens. Ann Millner of Utah and Michael Dembrow of Oregon.

Here are some key takeaways from each part of the report:

Part I: Trends in Higher Education: Understanding Policy and Outcomes

Graduation rates have climbed steadily but modestly over the past two decades. Today, nearly 38% of adults have a bachelor's degree or higher, and half of those ages 25 to 29 have at least an associate degree. Despite modest gains in attainment, nearly 42 million Americans have "some college, no credential." The task force found that a college degree continues to confer substantial benefits on average, but there is emerging evidence that some degree programs provide little to no return on investment.

Net tuition prices at two- and four-year institutions have recently declined, and total cost of attendance is currently at the lowest levels since the mid-2000s. State investment has steadily increased over the past decade and per student spending is nearing the all-time highs set in the early 2000s. Yet half of states are still spending less per student than they did before the Great Recession.

Americans collectively owe $1.75 trillion on unpaid student loans, an amount that has more than tripled since 2006, when Americans owed $481 billion. Among the more than 46.2 million federal borrowers, 54% owe less than $20,000, while the 10% of borrowers with balances greater than $80,000 account for nearly half of the total debt.

The task force found that graduate education debt has steadily increased over the last decade, now accounting for half of total student debt. In fact, student borrowing for undergraduate education is down nearly 50% from its peak in 2012-13, while borrowing for graduate education has remained fairly stable.

Part II: The State-Federal Relationship in Higher Education

While the federal role was historically intended to complement that of the states, federal policymakers have either enacted policies or signaled an intent to increase the federal role in ways that overlap with traditional areas of state authority. The task force strongly believes the federal role must complement the state role and can do so by helping states to achieve better outcomes in their higher education systems. The task force prefers a federal approach that promotes transparency, improvement and innovation in the service of state goals, rather than an expanded federal role in affordability and accountability.

The task force is satisfied with the current federal approach to funding through Pell Grants but expressed concerns about the increasing costs of the student loan program. Federal spending on student loan relief, repayment assistance and forgiveness has totaled close to $400 billion over the last five years. Recent estimates show that federal spending on loan repayment assistance will outpace spending on need-based financial aid over the next decade. The task force wondered about the efficacy of a federal approach that spends as much, or more, on loan repayment assistance than in up-front financial aid to students. The task force calls on Congress to clarify the role and goals of the loan program and determine fair terms for borrowers and taxpayers.

The task force strongly believes that states and the federal government should engage in greater communication on shared strategies and goals and explore coordination and collaboration where necessary. In particular, the task force welcomed an expanded federal role in transparency to help states better understand student outcomes and confirmed a long-standing preference for a limited federal role in accountability. The task force also discussed a formalized state-federal partnership that would provide federal support in the service of state strategies to improve higher education.

Part III: A State-Led Strategy to Enhance the Value of Degrees

Addressing the value of degrees was a goal that united the task force. The members observed that there are many expensive degrees that are great values, and others that cost far too much for the outcomes they lead to. And there are many affordable programs that provide life-changing education at a price that every American can access, while other low-priced programs may not be worth the cost.

The task force believes three criteria must be true for every student to receive a degree of value:

• Degrees must lead to desirable life, career and earnings outcomes.
• Students must be able to complete the degree program on time and at their pace.
• Tuition prices must be reasonable.

The task force articulates the roles and responsibilities that policymakers and higher education must play to ensure each of the criteria are true for every student. This includes more than 30 policy recommendations that states, institutions and federal partners can take, individually and in coordination, to enhance the value of degrees.

The task force believes the primary responsibility of institutions is to enhance the value of higher education and that they must adapt to meet the reality of today's students, who are more frequently working adult learners. The task force also believes the federal government has a responsibility to enhance the value of degrees and calls on Congress to reauthorize the Higher Education Act for the first time since 2008. The task force has identified several critical actions that Congress can take on a bipartisan basis to complement efforts from states and higher education to improve the value proposition of higher education.

The task force anticipates that the cumulative execution of a value-focused strategy across states, complemented by federal policy, can marshal changes to higher education and advance a system that better serves all students. The task force plans to continue its work to support positive change to the value proposition of higher education.

Austin Reid is a federal affairs advisor in NCSL's State-Federal Relations Division.

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