While some fairly valuable tax breaks for students have been kept from the chopping block, the Senate GOP’s tax bill could go a long way toward decimating funding for public colleges and universities, and community colleges in particular.
“You hear the apocryphal story of being able to work your way through school, because it was true,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “If you were a student in 1980 and you took on a full-time summer job and a part-time job in the school year, your college costs would be covered and your living expenses would be covered.” [...]
Demos, a liberal think tank, and the Institute on Assets and Social Policy at Brandeis University found African Americans are far more likely to have student debt, regardless of income. Black families, after decades of being shut out of traditional ladders of economic opportunity, have the fewest resources to cover the costs of college or to protect against the risk of borrowing.
To summarize, the House Republican tax plan would get rid of several incentives—from the ability to deduct student loan interest as well as tuition, to the Lifetime Learning tax credit—which provide middle-class students and borrowers with some relief at tax time.
“You’re going to have deductions and credits that primarily benefit the middle- and upper-class go away, but it’s not done in benefit to the working class,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “It’s just done as a revenue raiser.”
Some are heartened to see functioning-for-free college popping up in places like New York and elsewhere. Mark Huelsman senior policy analyst at Demos, a left-leaning think tank and the author of an influential white paper on free college, said he hopes they’ll serve as “laboratories” for policymakers to understand both the benefits and the limitations of different free college program designs.
“If you’re a college and you’re offering a very low level of prospective debt to students, that means nothing if the people who overall have more unmet financial need, or are more likely to have to borrow, can’t get into your institution,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank.
Rankings can also subtly push colleges away from spending on financial aid for needy students and, instead, toward things rewarded by the rankings, like small faculty-to-student ratios, Huelsman said. [...]
Some, like Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank, say the rankings’ incentives push colleges to take steps that often come at the expense of educating a wider swath of qualified students.
Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank, described the propensity of elite institutions to admit wealthy students or those with a familial connection as “the affirmative action we just don’t talk about.”
“If we care about getting more people to and through college, we can’t do it on the cheap,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “We’re not going to get the outcomes we want, unless we put in the public investment necessary to do so.” [...]
The share of student loan borrowers who entered repayment owing $20,000 or more doubled — from 20% to 40% — between 2002 and 2014, according to a report published Wednesday by the Consumer Financial Protection Bureau. What’s more, the share of borrowers entering repayment with $50,000 or more in debt tripled during the same period, the CFPB report found, jumping from 5% to 16%.
Two years ago, 54 percent of Republicans told Pew colleges had a positive impact on the direction of the country, according to that survey. That fell to 43 percent last year and 36 percent this year. Democrats, meanwhile, have gradually become more positive about higher education, with 72 percent this year viewing higher ed as having a positive effect, up from 65 percent in 2010.
Even so, observers on both the left and the right said the Education Next findings are interesting but not necessarily surprising.
I’ve met a lot of white people who believe that black students get so much financial aid and scholarships that they don’t have to pay for college. [...]
It’s worth noting, first of all, that black and Hispanic college students are more likely to have to borrow to pay for a college education and that they end up having to borrow more money to cover college costs. A study from Demos analyzing federal data found that 86 percent of black students and 87 percent of Hispanic students got loans to attend private universities, compared to 72 percent of whites.
The top three economic issues for young people are debt-free public college, paid family and medical leave and a higher minimum wage (followed closely by affordable childcare).
Black students are far more likely to take on debt for a degree than white students, and young black households have more student debt despite fewer educational opportunities and a more uncertain payoff in the job market.
“We think of education funding, particularly at the state level, as a spending issue, but it’s myopic,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “There are all kinds of second order effects to investing in education — homeownership or wealth building is certainly one of them. If you don’t spend the money on students now and that means that they’re less likely to go to college or they’re more likely to take on debt, that is going to impact their future economic activity.” [...]
“It’s clear that the exact cohort that they were tracking has gone through a fairly tumultuous young adulthood,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank.