Rob Horowitz: The Battle to Make College More Affordable
Tuesday, May 01, 2012
It looks as if President Barack Obama, joined by Sen. Jack Reed (D-RI), is going to win the battle to keep the interest rate on federally-backed Stafford loans at 3.4 percent -- instead of doubling as they were scheduled to on July 1.
In recent appearances at several colleges Obama hammered home the point that Republicans were willing to let interest rates double on these loans -- held by more than seven million low- and middle-income undergraduates. House Republicans quickly caved and Friday passed a one-year extension freezing the current interest rate. Unfortunately, they chose to pay for this extension in a substantively and politically problematic way by raiding a fund targeted for preventative health care. Still, the Republicans quick action shows they know that it would be politically unwise to allow these interest rates to go higher only a few months before they face the voters in November. As a result, an agreed-upon, short-term fix is very likely.
This battle over student loan interest rates is just one aspect of a broader, long-term fight to ensure college is affordable. Over the past 25 years, college costs have increased by more than 500 percent. Student loans now exceed credit card debt at more than $1 trillion. Students now graduate from college owing an average of $24,000 in student loans and in an economy where finding a job is far from a sure thing.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThis combination of rising tuition and increasing debt burdens is putting college out of reach for too many people. A study by the University of Rhode Island (URI) on why people fail to graduate from the school reveals that rising costs are a major factor.
Recognizing this, Obama has proposed using the leverage of higher education aid to put colleges on notice that they must control costs. This proposal is unlikely to get far in Congress during this election year, but it will be important for the President to re-double his efforts on this topic if he is re-elected.
Even more important, colleges and universities must seize on new technology to make better use of distance learning and other innovations that have the potential to keep costs in check.
In today’s highly competitive global economy, a college education is a key to economic success for individuals and for the nation as a whole. Making sure it is affordable is essential to preserving the American Dream.
Rob Horowitz is a strategic and communications consultant who provides general consulting, public relations, direct mail services and polling for national and state issue organizations, various non-profits and elected officials and candidates. He is an Adjunct Professor of Political Science at the University of Rhode Island.
