A new bill introduced to Congress by Rep. Howard P. “”Buck”” McKeon (R-CA) could punish colleges that are implementing “”exorbitant tuition hikes”” by cutting off federal funding of certain loans and grants to the schools, specifically funds for work-study programs.
“”For over 20 years, schools have been raising tuition,”” McKeon said. “”I’m hopeful that now they will do a better job.””
Under the proposed bill, H.R. 3311, public institutions throughout the nation would be measured against a set College Affordability Index, penalizing schools that raise student fees by at least $500 more than twice the inflation rate in any three-year period. Certain provisions of the bill would exclude schools whose tuition was ranked in the bottom quarter of schools in their category.
“”I’m hopeful that the California schools will fit into that category,”” McKeon said.
The University of California, after seven years without fee hikes, raised its tuition 30 percent last year.
“”The university has done an excellent job at keeping costs down, and only raised fees as a last resort,”” said Chris Harrington, a UC spokesperson in Washington, D.C.
While the University of California has not taken a stance on the issue, they are currently reviewing the bill to assess its potential impact before taking a position, according to Harrington.
Pell grants, Stafford loans and other federal grants issued directly to students from the government would not be affected.
The bill also aims to eliminate barriers for students in transferring credits from one public institution to another.
While the finalized bill was unveiled on Oct. 16, some education officials have come out against the proposed bill since its conception in March.
“”Rather than choosing to address the root cause of the revenue shortfalls that have forced many institutions to cut costs, scale back programs and raise tuitions, this bill will instead tell the American people that there is indeed such a thing as a Œfree lunch’,”” said American Council on Education President David Ward on March 5.
Ward reiterated his position in an Oct. 1 statement, saying his organization was against McKeon’s proposal.
According to the ACE, which represents higher education institutions’ interests across the nation, an estimated 1,400 institutions would have lost the specified federal funding in the last two years, had the law been in effect.
When the House Committee on Education and the Workforce, which McKeon is a member of, issued a report on Sept. 3 called “”The College Cost Crisis,”” in which blame was put on colleges and universities for unjustified tuition increases, the American Association of State Colleges and Universities also criticized his position, releasing a statement saying that a “”vast majority”” of public institutions do not determine tuition increases.
“”Tuition increases in recent years have been larger than the higher education community wished or desired,”” the AASU response stated.
The response also pointed to other ways in which the institutions were already accountable, such as publicly reported and audited finances, review by governing and coordinating boards, and subject to public review and public meeting legislation.
According to McKeon, a user-friendly Web site would be created to permit students and parents to compare schools’ track record in regard to tuition.
“”Hopefully they’d choose to take their Pell grants to the ones doing a good job at keeping costs down,”” McKeon said. “”We want to protect the students. They aren’t the ones that are raising the fees.””
