S. HRG. 112–927 MAKING COLLEGE AFFORDABILITY A PRIORITY: PROMISING PRACTICES AND STRATEGIES HEARING OF THE COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS SECOND SESSION ON EXAMINING MAKING COLLEGE AFFORDABILITY A PRIORITY, FOCUSING ON PROMISING PRACTICES AND STRATEGIES JULY 19, 2012 Printed for the use of the Committee on Health, Education, Labor, and Pensions ( Available via the World Wide Web: http://www.gpo.gov/fdsys/ U.S. GOVERNMENT PUBLISHING OFFICE 93–479 PDF WASHINGTON : 2015 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS TOM HARKIN, Iowa, Chairman BARBARA A. MIKULSKI, Maryland MICHAEL B. ENZI, Wyoming JEFF BINGAMAN, New Mexico LAMAR ALEXANDER, Tennessee PATTY MURRAY, Washington RICHARD BURR, North Carolina BERNARD SANDERS (I), Vermont JOHNNY ISAKSON, Georgia ROBERT P. CASEY, JR., Pennsylvania RAND PAUL, Kentucky KAY R. HAGAN, North Carolina ORRIN G. HATCH, Utah JEFF MERKLEY, Oregon JOHN MCCAIN, Arizona AL FRANKEN, Minnesota PAT ROBERTS, Kansas MICHAEL F. BENNET, Colorado LISA MURKOWSKI, Alaska SHELDON WHITEHOUSE, Rhode Island MARK KIRK, Illinois RICHARD BLUMENTHAL, Connecticut PAMELA J. SMITH, Staff Director, Chief Counsel LAUREN MCFERRAN, Deputy Staff Director FRANK MACCHIAROLA, Republican Staff Director (II) CONTENTS STATEMENTS THURSDAY, JULY 19, 2012 Page COMMITTEE MEMBERS Harkin, Hon. Tom, Chairman, Committee on Health, Education, Labor, and Pensions, opening statement ............................................................................... 1 Enzi, Hon. Michael B., a U.S. Senator from the State of Wyoming, opening statement .............................................................................................................. 2 Burr, Hon. Richard, a U.S. Senator from the State of North Carolina ............... 4 Bingaman, Hon. Jeff, a U.S. Senator from the State of New Mexico .................. 42 Alexander, Hon. Lamar, a U.S. Senator from the State of Tennessee ................ 44 Franken, Hon. Al, a U.S. Senator from the State of Minnesota .......................... 46 Merkley, Hon. Jeff, a U.S. Senator from the State of Oregon ............................. 48 Hagan, Hon. Kay R., a U.S. Senator from the State of North Carolina ............. 50 WITNESSES Heller, Donald E., Dean of the College of Education at Michigan State Uni- versity, East Lansing, MI .................................................................................... 5 Prepared statement .......................................................................................... 7 Leath, Steven, President, Iowa State University, Ames, IA ................................ 9 Prepared statement .......................................................................................... 12 Murdaugh, Jim, President, Tallahassee Community College, Tallahassee, FL . 15 Prepared statement .......................................................................................... 16 Snyder, Thomas J., President, Ivy Tech Community College, Bloomington, IN ........................................................................................................................... 24 Prepared statement .......................................................................................... 26 Twigg, Carol A., President and CEO, National Center for Academic Trans- formation, Miami, FL ........................................................................................... 28 Prepared statement .......................................................................................... 30 ADDITIONAL MATERIAL Response to questions of Senator Enzi by: Donald E. Heller ............................................................................................... 60 Steven Leath ..................................................................................................... 61 Jim Murdaugh .................................................................................................. 64 Thomas Snyder ................................................................................................. 67 Carol A. Twigg .................................................................................................. 68 Response to questions of Senator Bennet by: Steven Leath ..................................................................................................... 64 Jim Murdaugh .................................................................................................. 66 Carol A. Twigg .................................................................................................. 68 (III) MAKING COLLEGE AFFORDABILITY A PRI- ORITY: PROMISING PRACTICES AND STRAT- EGIES THURSDAY, JULY 19, 2012 U.S. SENATE, COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS, Washington, DC. The committee met, pursuant to notice, at 10:01 a.m. in room SD–430, Dirksen Senate Office Building, Hon. Tom Harkin, chair- man of the committee, presiding. Present: Senators Harkin, Enzi, Bingaman, Alexander, Burr, Hagan, Merkley, and Franken. OPENING STATEMENT OF SENATOR HARKIN The CHAIRMAN. The Senate Committee on Health, Education, Labor, and Pensions will come to order. As we approach the start of a new academic year, millions of stu- dents and families across America are struggling to pay the esca- lating costs of college. During these difficult economic times, soar- ing tuition and shrinking real incomes are making college less and less affordable. Over the past decade, State and local funding for students dropped by 25 percent, while tuition and fees at 4-year public schools increased by 72 percent. Student debt crossed the $1 trillion mark and surpassed credit card debt for the first time ever. The news media is rife with sto- ries of crushing student debt, including graduates with $120,000 debt making $225 a week working two jobs. For millions of young people, these trends are putting the American Dream on hold or out of reach. A national survey of recent graduates, released this past spring, found that 40 percent had delayed making a major purchase, like a home or a car, because of college debt. About one-fourth had de- cided to put off continuing their education, or had moved-in with relatives, to save money. Americans aged 25 to 34 now make up a little more than one-fourth of all home buyers, the lowest share in the past decade. There is no need to cite more of these grim statistics and stories today, but the message is clear: college is increasingly out of reach for students from working families and lower income families and our Nation is losing ground in having a well-educated workforce that can compete in the global economy. One of my top priorities as chair of this committee is to address this college affordability crisis, and to try to find ways to help curb (1) 2 the ever-growing financial barriers to college. This is the second HELP committee hearing this year focusing on college affordability. As with the previous hearing in February, I want us to move be- yond merely bemoaning the severity of the problem. Our focus will be on institutions that are breaking with ‘‘business as usual’’ to im- plement promising strategies and practices, innovations and initia- tives to improve college affordability. Today’s panel emphasizes efforts at the institutional level that are proving successful in curbing costs, both for colleges and stu- dents, while improving student access and student success. These innovations can help inform our committee’s work in designing Federal policy, and may be worthy of being replicated and scaled up to help America regain and retain its global leadership. We will also hear some expert insights into how tuition pricing and financial aid policies can promote affordability. How do some schools take an unsparing look at their operations to find effi- ciencies, so savings can be translated into minimal or no tuition in- creases and more effective student supports? How are schools working with students and families to ensure they are making sound financial decisions and accessing all of the aid available to them? How are innovative leaders in academia realigning and rein- venting their operations? How are some schools realizing gains in retention and completion while bringing down costs per student? How do some schools maximize their financial aid resources by tar- geting aid to students with the most financial need? In short, how can colleges and universities make it a priority to strengthen post-secondary access and to boost the success of stu- dents from lower and middle income families in the face of State cuts, growing costs, and increasing calls for better responsibility and outcomes? I look forward to working with our distinguished Ranking Mem- ber, Senator Enzi, and my colleagues on both sides to ensure that a college education remains affordable and within reach for all Americans regardless of background. With that, I invite Senator Enzi for opening remarks. OPENING STATEMENT OF SENATOR ENZI Senator ENZI. Thank you, Mr. Chairman. I am glad that we are having this hearing, and I appreciate this outstanding panel. I appreciate the extensive testimony that has been provided. I only regret that you will have to reduce that so we can stay within the timeframe, and so that we will have time for questions, but what you have provided