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"I have something to say to every family listening to us tonight:
Your children can go on to college. If you know a child from a poor family,
tell her not to give up-she can go on to college. If you know a young couple
struggling with bills, worried they won't be able to send their children to
college, tell them not to give up-their children can go on to college. If you
know somebody who's caught in a dead-end job and afraid he can't afford the
classes necessary to get better jobs for the rest of his life, tell him not to
give up-he can go on to college. Because of the things that have been done, we
can make college as universal in the 21st century as high school is today. And,
my friends, that will change the face and future of America."
President Bill Clinton
State of the Union Address
January 27, 1998 |
EXECUTIVE SUMMARY
More and more, college is the gateway to the
American Dream. Education may be the most important investment we make in our
lifetimes. It holds the key to good citizenship, enriched lives, and economic
prosperity-both for ourselves as individuals and for us as a nation.
The economic returns to college are higher than ever before, and more
Americans than ever are going to college. In 1998, young men who completed
at least a bachelor's degree earned 150 percent the salary of their peers with
no more than a high school diploma-and young women earned twice as much if they
had graduated from college. A college graduate earns $600,000 more over a
lifetime, on average, than a high school graduate. And the real rate of return
on a college investment is 12 percent-nearly twice the historical average of
the stock market.
Over the past seven years, we have more than doubled our investment
in student aid. As a nation, we need to help America's parents pay for
their children's college education and their own continuing education.
For seven years, President Clinton and Vice President Gore have sought to
make colleges and universities, community colleges, and trade schools
universally affordable for all Americans. The Clinton-Gore approach is
three-pronged:
- More college scholarships. The new Hope Scholarship tax credit
provides up to $1,500 in tax relief for the first two years of college, saving
2.6 million families $2.6 billion in 1998. The Lifetime Learning credit-which
provides up to $1,000 for juniors and seniors, graduate students, and adults
seeking job training-gave 2.3 million families $800 million in tax relief in
1998. Over 3.8 million needy students receive up to $3,300 in Pell Grant
scholarships, a $1,000 larger maximum grant than in 1993. Since 1994, over
150,000 AmeriCorps members have earned nearly $400 million for college while
serving their communities.
- More affordable student loans. This Administration has introduced
lower fees and interest rates that have saved the average borrower over $500;
more flexible repayment terms, including the option to repay as a share of
income; and a restored tax deduction for student loan interest. The new
Direct Student Loan program-established in 1994-bypasses federally guaranteed
lenders to deliver loans to students more quickly, simply, and cheaply.
Together, students and taxpayers have already saved $15 billion through student
loan reforms.
- New paths to college and successful careers. The new GEAR UP
initiative raises expectations and helps over 450,000 disadvantaged
middle-school students get on track for college success through partnerships
between high-poverty middle schools, universities, and communities. AmeriCorps
education awards and a one-third increase in work-study jobs have allowed
hundreds of thousands of Americans to earn money for college. Our investment in
the TRIO program to help low-income, first-generation students succeed in
college has increased by two-thirds since 1993, to $645 million. The
School-to-Work Opportunities Act has provided seed money to help every state
broaden young people's career options, make learning more relevant, and promote
successful transitions to college and careers. And Youth Opportunity grants
make possible comprehensive employment and training assistance
to 75,000 out-of-school youth in high-poverty communities.
The Clinton-Gore commitment to opening the doors of college is the
largest investment in higher education since the G.I. Bill. College is
affordable for all Americans, and more and more of us are benefiting from it.
The evidence is in:
- More Americans are going to college than ever before:
Sixty-six percent of 1998 high school graduates enrolled in college or trade
school the next fall, compared to only 60 percent in 1990. Although low-income
and minority students continue to go straight to college at significantly lower
rates than high-income and white students, the gaps have narrowed since the
1970s and 1980s.
- More high school students are preparing themselves for
college: The percentage of high school graduates who have taken four years
of English and three years each of math, science, and social studies increased
from 38 percent to 55 percent. This increasing academic rigor is heartening
because the intensity and quality of high school curricula are dominant
determinants of degree completion. Also, SAT scores, especially in math, have
gone up over the past 10 years, and the number of test takers reached an
all-time high last year-even as a larger and more diverse group of students
took the test.
- Fewer students are dropping out of school: During the 1990s,
approximately 11-12 percent of 16- to 24-year-olds had not completed a high
school program and were not enrolled in school, compared to 13-14 percent in
the 1980s and over 14 percent in the 1970s. Progress has been especially strong
among African Americans, whose high school completion rate now slightly exceeds
the national average.
- More Americans are earning college degrees: Over 32 percent of
25- to 29-year-olds had earned at least a bachelor's degree in 1999, up from 27
percent in 1990. In particular, white and African American women have seen
their college opportunities grow.
- Americans are becoming lifelong learners: Fifty percent of
adults participated in formal learning in the year prior to a 1999 survey, up
from 38 percent in 1991.
This report describes President Clinton and Vice President Gore's
efforts to expand college scholarships, make student loans more affordable, and
close the college opportunity gap. It describes the impact these efforts have
had on college preparation, enrollment, and completion. Finally, it outlines
the challenges that continue to face all of us who care about expanding and
equalizing college opportunity.
MORE COLLEGE
SCHOLARSHIPS
More financial aid is available for college
than ever before. Since 1993, new college tax credits and national service
programs-as well as the greater availability of federal scholarships for
low-income families-have opened the door to higher education for millions of
students who otherwise could not afford it. The federal government will provide
over $60 billion in 2001 aid, including the Hope Scholarship and Lifetime
Learning tax credits, compared to only about $25 billion in 1993. Today,
students are going to college in record numbers.
College and lifelong learning are more important than ever before.
One hundred years ago, we passed laws requiring every child to attend
school. Fifty years ago, we extended public schools to 12 years and passed the
G.I. Bill to open the doors of college to middle-class Americans. Today, as we
enter the 21st century-stepping confidently into the Information Age
and an era of global economic competition-we must expand postsecondary
education opportunities for everyone.
- President Clinton proposed the Hope Scholarship to make two years
of college affordable for all families. A $1,500 tax credit for the first
two years of college, the Hope Scholarship will pay for nearly all of a typical
community college's tuition and fees. When proposing the credit in 1996,
President Clinton declared that "our goal must be nothing less than to make the
13th and 14th years of education as universal to all Americans as the first 12
are today." In 1998, 2.6 million families received $2.6 billion in tax relief
for higher education through the Hope Scholarship.
- President Clinton also proposed the Lifetime Learning tax credit
to complement the Hope Scholarship and promote lifelong education and worker
training. The $1,000 Lifetime Learning credit reimburses families for 20
percent of their tuition and fees (up to $5,000 per family) for college,
graduate study, or job training. Starting in 2002, the credit will reimburse
families for 20 percent of their costs up to $10,000, for a maximum value of
$2,000. In 1998, 2.3 million families saved $800 million on higher and
continuing education through the Lifetime Learning credit.
- These credits make a difference for American families. For
instance, a family earning $60,000 with one child at a community college (with
a tuition of $2,000) and another child who is a sophomore at a private college
(with a tuition of $11,000) would receive as much as $3,000 in tax relief under
the Hope Scholarship. An automobile mechanic with an income of $30,000, taking
courses at a local technical college (with a tuition of $1,200) to upgrade his
computer skills would save as much as $240 using the Lifetime Learning
credit.
The Clinton Administration has been dedicated to expanding
scholarships for needy students. The cost of college makes a difference for
students from low-income families. Some scholars believe, for instance, that a
$100 increase in the cost of college decreases the enrollment of lower-income
students by about 1 percent.
- Pell Grant scholarships for low-income students are the federal
government's single largest commitment to equalizing college opportunities.
Pell Grants-more targeted to meet financial need than any other of the
Department's student aid programs-help ensure financial access to postsecondary
education. Over the past quarter century, 30 million students have used a Pell
Grant to help pay for college or career training.
- The Clinton Administration restored the
financial integrity of Pell Grants. The
Clinton Administration inherited a $2 billion funding shortfall in the Pell
Grant program. During the next several years, this funding shortfall was
eliminated-restoring this important program's solvency-even while increasing
the amount that the lowest-income students receive.
- The Clinton Administration has increased the federal investment in
Pell Grants by over 40 percent. Today, 3.8 million students receive grants
of up to $3,300. When President Clinton took office in 1993, the maximum Pell
Grant was $2,300. In contrast to this $1,000 increase, the maximum grant
increased by only $630 during 12 years of the Reagan-Bush Administrations.
- Supplemental Educational Opportunity Grants, which provide
scholarships up to $4,000 to low-income students, have also been expanded under
this Administration. This year, 1.1 million students will receive nearly $800
million in SEOG scholarships.
Since 1994, AmeriCorps has allowed more than 150,000 Americans to
strengthen their community while earning help to pay for college.
AmeriCorps members tutor children, fight crime, build houses, and do countless
other things to improve lives and bring people together. AmeriCorps has made
available nearly $400 million dollars to help participants achieve their dream
of a college education while improving their communities.
MORE AFFORDABLE STUDENT
LOANS
Many working families could not afford to pay
for college without college loans. Although a college education usually
pays for itself in higher earnings many times over, immediate liquidity
problems may be a major obstacle for many families. As a result, an accessible
and affordable student loan program is essential to college access.
In 1993, the student loan program needed serious reform.
- More than one borrower in five defaulted within two years of
graduation.
- Subsidies for lenders and guaranty agencies (intermediaries between
lenders and the Department of Education) created a large and unnecessary
expense for taxpayers.
- Lenders and guaranty agencies faced financial disincentives to
prevent defaults or spend taxpayer dollars prudently.
- Different lenders often had different paperwork, procedures, and
schedules, causing confusion and administrative burdens for students and
schools.
- Lenders and guaranty agencies often reported unreliable financial
data to the government.
In 1993, President Clinton revolutionized college loans by
championing the Direct Student Loan program. The Direct Loan system applies
free-market principles effectively: It raises capital less expensively through
U.S. Treasury bond sales and delivers and services loans through competitively
awarded, performance-based contracts with top-quality private firms.
For students, reform means more accessible, cheaper loans.
Students now can repay their loans as a share of their income and have
saved $9 billion through lower interest rates and fees.
- New flexible loan repayments. By allowing graduates to repay
their loans as a share of income, Direct Lending allows students to start
college without fear of being unable to repay their loans. The
"income-contingent" plan also enables college graduates to undertake teaching
and other public service careers.
- Lower interest rates. Student loan borrowers since 1993 will
save $100 annually for each $10,000 in outstanding loans-a total of $5 billion
so far-due to reductions in the interest rate formula in 1993 and 1998. The
Administration also championed the lower maximum rate paid by students, reduced
from 10 percent to 8.25 percent, to protect them against high interest
rates.
- Lower fees. Thanks to savings from the Direct Loan program,
fees on direct and guaranteed loans were reduced from up to 8 percent of loan
principal in 1993 to up to 4 percent today, saving students $4 billion so far.
In 1999, in recognition of widespread discounts available on guaranteed student
loans, the Administration reduced direct loan fees to 3 percent.
- Easier to receive and repay. Direct loans require less
application paperwork and, unlike the guaranteed program, all borrowers have
just one account with a single point of contact.
- Favorable refinancing terms. Loan consolidation allows
students to better manage their debt and lock in favorable loan terms. A
typical member of the Class of 2000 who consolidates before July 1, 2000, will
save over $1,500 on $20,000 of debt due to today's lower interest rates.
For taxpayers, the student loan reform means billions in savings.
- Direct loans are much cheaper for taxpayers. By eliminating subsidy
payments to lenders, direct lending has saved over $4 billion over the past
five years.
- Federal costs of guaranteed loans have also fallen. Federal
subsidies for banks and guaranty agencies have also been pared down, saving
taxpayers an additional $2 billion.
- The default rate has fallen for seven straight years, from
22.4 percent at the start of this Administration to a record-low 8.8 percent
today.
- Collections on defaulted loans have tripled, from $1
billion to $3 billion, under this Administration.
For schools, student loan reform slashed administrative burdens.
- Over 1,200 schools chose to leave the guaranteed loan program and
join Direct Lending during its first three years. Direct lending offers one set
of procedures, fast and reliable delivery of funds, less paperwork, electronic
loan processing, and a customer service emphasis.
- Schools in the guaranteed loan program have also benefited through
competition. A new and strong competitor in one of the largest financial
markets in the world, the Direct Loan program inspired lenders to improve their
service.
- School satisfaction with the guaranteed loan programs has
increased every year since 1994, according to independent surveys.
- A senior banking executive told a trade journal that "[Direct
Loans] have introduced some ways of doing business and some delivery mechanisms
that made the private enterprise wake up a little bit. To be perfectly honest,
as a private enterprise we thought we were doing almost an A-plus job. When we
stepped back a little bit, we saw some of the things the Department of
Education was doing and we realized we weren't. . . . It's been relatively good
for the industry, particularly for the recipients in terms of students and
schools."
- A 1999 independent assessment concluded, "Virtually no one
disputes that the operation of an alternative loan program has produced a
competition that inspired innovation and service-to the benefit of all
borrowers and schools."
By signing a tax deduction for student loan interest into law in
1997, President Clinton complemented these reforms. This legislation-which
reinstated a provision that had been repealed in the 1980s-will, for example,
provide $144 in tax relief to a college graduate earning $25,000 a year and
struggling to repay her $12,000 debt. This year, President Clinton asked
Congress to expand the student loan interest deduction because current law
covers only the first 60 months of loan repayment.
In sum, there was little competition in the student loan program in
1993. The Direct Loan program gave students and schools a choice, injecting
healthy competition into the marketplace. Students have saved $9 billion in
interest and fees and enjoyed new tools to manage their debt, including
income-contingent repayment. Taxpayers have saved an additional $6 billion.
Today we have two leaner, more competitive, customer-focused programs.
NEW PATHS TO COLLEGE AND SUCCESSFUL
CAREERS
Student aid matters, but more is needed to
expand college opportunities for all Americans. The Clinton Administration
has substantially expanded the federal government's investment in student aid
through the Hope and Lifetime Learning tax credits, cheaper and more widely
available student loans, and larger Pell Grant scholarships for needy students.
But too many students still limit their potential by ruling out education
beyond high school. Research indicates that financial aid is not enough-we must
intervene in the lives of poor and minority youth to raise their expectations
and help them prepare for college, and do so early enough to make a difference.
The GEAR UP initiative is raising expectations of disadvantaged
students. In his 1998 State of the Union address, President Clinton
proposed a new initiative to make a difference for students in high-poverty
schools. Ten months later, Congress enacted GEAR UP-Gaining Early Awareness and
Readiness for Undergraduate Programs-with broad bipartisan support. This
academic year, its first in operation, the GEAR UP initiative is giving hope,
raising expectations, and creating college opportunities for over 450,000
disadvantaged children. Next year it will grow to 750,000 students, and
President Clinton requested $325 million to serve 1.4 million students in
2001-02.
- GEAR UP supports partnerships of schools, colleges and
universities, and community organizations to strengthen academics and
tutoring, raise expectations, provide college visits and counseling, inform
families about college requirements and financial aid, and often provide
college scholarships. It also funds state efforts to promote college awareness
and provide scholarships for needy students. Over 1,000 organizations are GEAR
UP partners, including colleges and universities, libraries, arts
organizations, and chambers of commerce.
- Developed based upon academic research about college success, GEAR
UP has several special characteristics. GEAR UP partnerships start no later
than the 7th grade because research shows that students who take
challenging coursework in middle school, including algebra, are far more likely
to succeed in high school and college. Second, GEAR UP programs stay with
children through high school graduation to provide long-term mentoring over a
period of six or more years, helping children stay on track for college, and
often providing scholarships when they reach college. Third, GEAR UP
partnerships work with entire grades of students to transform their schools.
And finally, they provide college scholarships, which research shows to be
particularly important in preventing low-income students from dropping out.
- Research on existing programs demonstrates the value of and the
need for GEAR UP.
- The I Have a Dream (IHAD) program provides an entire grade of
low-income students with intensive mentoring, academic support, and a promise
of public and private aid for college tuition. Roughly 75 percent of Chicago
IHAD students in the class of 1996 graduated from high school, compared to only
37 percent of students in the control group.
- Project GRAD is a college-school-community partnership to
improve inner-city education that has produced dramatic results on a large
scale: The percentage of middle school students passing the Texas statewide
math test has tripled from 21 percent in 1995 to 63 percent in 1998. Five times
more students are going to college.
The Clinton Administration has also expanded the TRIO programs to
promote college success. TRIO is a network of initiatives designed to help
low-income, first-generation college, and disabled individuals achieve academic
success beginning in middle school, throughout college, and into graduate
school. Since 1993, funding for the programs has increased by two-thirds, from
$388 million to $645 million. Named TRIO in the late 1960s after its first
three programs-Upward Bound, Talent Search, and Student Support Services-TRIO
now serves 730,000 students. The eight TRIO programs include:
- Upward Bound provides intensive mentoring and academic
enrichment throughout high school to primarily low-income or first-generation
college-bound youth. In 1999, over 560 Upward Bound projects engaged 42,000
students in demanding coursework and summer residential programs.
- Educational Opportunity Centers provide pre-college academic
and financial aid counseling primarily for adults seeking to return to school.
- Student Support Services provides tutoring and counseling to
help students stay in college.
- Talent Search provides academic, career, and financial
counseling to disadvantaged students with the potential to succeed in higher
education.
- The Ronald McNair Post-Baccalaureate Achievement Program
provides colleges and universities with funds to subsidize research projects by
low-income students to prepare them for a doctoral program.
This year, one million college students will have work-study
jobs, over 250,000 more than in 1993. Federal work-study funds have
increased 43 percent since 1993. Work-study jobs both expand opportunity and
teach responsibility and employment skills. And through the America Reads and
America Counts initiatives, work-study students at 1200 schools serve as
reading and math tutors in their communities.
Other important Clinton-Gore initiatives have helped young people and
their parents set their sights high as they plan for the future:
- Through the School-to-Work Opportunities Act of 1994, the
Administration funds state efforts to broaden young people's career options,
make learning more relevant, and promote successful transitions to college and
careers.
- AmeriCorps builds paths to college.
A recent evaluation found that AmeriCorps
helped at least three-quarters of members benefit more from school, pursue
their careers, and become engaged citizens. The evaluation also found that the
education award served as both an incentive and a clear opportunity to further
education and skills.
- Youth Opportunity grants are aimed at increasing the long-term
employment of youth in high-poverty. In some areas of pervasive
joblessness, the Department of Labor found that only one out-of-school youth in
four had a job. Youth Opportunity grants take a saturation approach to bring
about community-wide change, promoting economic development, reducing
drop-outs, decreasing crime, and increasing post-secondary enrollment. Youth
Opportunity grants now serve over 58,000 youth.
- The Administration's Think College Early campaign provides
accessible guidance to students and their families as they plan for
college. The campaign targets the nation's 19 million adolescents, 20
percent of whom live in poverty. Recognizing that disproportionate numbers of
low-income students and minority students attend two-year colleges, Think
College Early encourages all students to pursue admission to a four-year
college. A brochure available at the Department's web site, Think College?
Me? Now?, emphasizes the importance of college preparatory coursework and
early financial planning for college. In particular, the campaign urges
students to take algebra by the 8th grade, as students who gain early exposure
to high school math are far more likely to go to a four-year college than those
who do not.
- The new College Opportunities On-Line (COOL) web site at the
Department of Education informs students and their families about their college
options. By displaying information on 9,000 colleges-from small technical
colleges to the nation's largest and most prestigious universities-the COOL
site helps families make informed decisions and creates an incentive for
colleges to reduce tuition prices. For each college, the web site provides
tuition and financial aid statistics, information on the most recent incoming
freshman class, a list of the degrees offered, the available fields of study,
and contact information for the college's departments. The web site is
available through www.ed.gov.
- To encourage low-income students to take AP classes and tests, the
Administration's Advanced Placement Incentive Program will provide $15
million in competitive grants this year to 40 states. Schools use the funds to
pay test fees for low-income students, tutoring, classroom materials, and other
innovative methods to boost the number and quality of AP classes and
participation by low-income students. Since 1998, over 92,000 low-income
students have benefited from the program, and this year, over 80,000 more
students will benefit from funds to offset the cost of AP exams. Federal
support has also encouraged many schools that had not participated in the AP
program to begin offering AP courses.
These initiatives complement the Clinton Administration's efforts to
strengthen elementary and secondary education:
- Through high academic standards for all children, President Clinton
has sought to raise expectations and measure results over the past seven years
-no longer tolerating lower standards for children living in poverty, with
disabilities, or with limited English proficiency.
- To improve teacher quality, this Administration has invested
in the recruitment, preparation, mentoring, and support of new teachers for the
first time in 30 years. It has promoted rigorous standards, supported high
quality professional development, and vigorously called for a complete reform
of the teaching profession at every level. In 1999, the Administration launched
its initiative to hire 100,000 teachers for the early grades to reduce class
sizes and strengthen reading and early childhood development.
TRENDS IN HIGHER
EDUCATION
President Clinton and Vice President Gore have
worked hard to expand college opportunity, and our country has seen remarkable
results. As the benefits of college, high academic standards, and student aid
grow, so too do high school and college completion rates. Although a "college
opportunity gap" still faces many minority and low-income students, our society
is making headway in promoting equal educational opportunity for all our
citizens.
The Benefits of Postsecondary Education
The real rate of return on a college investment is 12 percent-
nearly twice the historical average of the stock market. This figure is based
on only earnings; the documented benefits of higher education such as job
benefits, better health, and more informed investments and purchases might
double the value of higher education. Finally, society's return on its
investment in higher education, in higher tax revenues and lower crime and
welfare rates, is also roughly 12 percent.
The economic power of higher education is growing steadily,
especially for women, as technology and knowledge increasingly drive our
nation's economy. Whereas young men and women in 1980 who completed at least a
bachelor's degree earned 19 percent and 52 percent more, respectively, than
their peers with no more than a high school diploma, by 1998 the earnings gap
had grown to 56 percent among men and 100 percent among women. In other words,
women with a bachelor's or higher degree now earn twice as much as women
with no more than a high school diploma. Similarly, young adults with only a
high school diploma earned 30 percent more than young adults who dropped out of
high school.
Jobs that require a college degree are growing twice as fast as
others. The 20 occupations with the highest earnings all require at least a
bachelor's degree. The growing importance of education is illustrated by the
demand for technology skills: In 1997, for example, information-technology
workers earned 78 percent more than workers in all industries combined-up from
56 percent above average in 1989.
Higher levels of education encourage additional education over a
lifetime-an increasingly important activity in an age of rapid technological
and economic change.
- Overall, among adults age 18 or older, participation in some type of
formal learning activity during the past 12 months rose from 38 percent in 1991
to 50 percent in 1999.
- In 1999, 65 percent of adults with a bachelor's or higher degree
participated in a formal learning activity within the past 12 months, compared
to only 41 percent of those with a high school diploma and only 27 percent of
those who had finished middle school but not high school.
Finally, higher levels of education are associated with more active
citizenship. In the 1998 congressional elections, college graduates between
25 and 44 years old were 77 percent more likely to vote than high school
graduates. High school dropouts were 52 percent less likely to vote than high
school graduates. Voting patterns in the 1996 presidential election were
similar.
High School Dropout and Completion
Rates
Fewer students drop out of school than in the 1980s and 1970s. During
the 1990s, around 11 to 12 percent of 16- to 24-year-olds had not completed a
high school program and were not enrolled in school, compared to 13 percent to
14 percent in the 1980s and over 14 percent in the 1970s. In 1998 and 1999,
around 88 percent of 25- to 29-year-olds had completed high school.
Progress has been especially strong among African Americans, whose high
school completion rate now slightly exceeds the national average. While there
has been some progress, the dropout rate among Hispanic youth remains too high.
During the 1990s, around 30 percent of Hispanic 16- to 24-year-olds had not
completed a high school program and were not enrolled in school, down only
slightly from around 33 percent during the 1970s.
College Preparedness
Academic intensity of students high school curriculum is a dominant
determinant of whether they will earn a college degree, according to U.S.
Department of Education research. Rigor of curriculum is a better predictor of
college completion than test scores or class rank and GPA, and the positive
impact of the high school curriculum is far more pronounced for
African-American and Hispanic students than any other pre-college indicator of
academic resources.
So it is heartening that students who finish high school are better
prepared for college than they were a decade ago. Between 1990 and 1998,
the percentage of high school graduates who have taken four years of English
and three years each of math, science, and social studies increased from 38
percent to 55 percent, with large increases across all racial and ethnic
groups.
Advanced Placement test-taking is at an all-time high. In 1999,
over 704,000 students took college-level AP exams; 55 percent of the
test-takers were women and 30 percent were minority students, including the
highest proportions of African American and Hispanic students ever. Fifty-six
percent of high schools offer AP classes today, compared to only 40 percent in
1989. As a result, more students are entering college with experience in
college-level curriculum than ever before.
Scores on the Scholastic Assessment Test are rising. SAT scores,
especially in math, have gone up over the past 10 years, and the number of
test-takers reached an all-time high last year-even as a larger and more
diverse group of students took the test. Average verbal and math scores have
risen among all racial and ethnic groups except Mexican Americans and
Hispanics/Latinos.
College Enrollment and Educational
Attainment
High school graduates are enrolling in college in record numbers.
The percentage of high school graduates going straight to college rose from
60 percent in 1990 to 66 percent in 1998. These rates of college-going
exceed comparable rates during the 1980s, when only 50 percent to 60 percent of
high school graduates immediately enrolled in college.
Much of this progress is due to substantial increases in college
attendance among women, who now go straight to college at higher rates than
men. Lower-income students continue to go straight to college at significantly
lower rates than higher-income students, and African Americans and Hispanics go
straight to college at lower rates than whites. Nevertheless, the gaps have
narrowed somewhat since the mid-1980s and, for the first time, a majority of young
African-Americans is enrolling in higher education
More Americans are earning college degrees. The percentage of 25-
to 29-year-olds with a bachelor's or higher degree rose from 27 percent in 1990
to over 32 percent in 1999. Progress among white women account for much of this
gain; while less than 29 percent of white women had completed a bachelor's
degree in 1990, over 37 percent had done so in 1999. African American women
have also made substantial progress; around 19 percent had completed a
bachelor's degree in 1999, up from 13 percent to 14 percent at the start of the
decade. However, African American men and Hispanic men and women have not shown
consistently strong gains over this period. The rates of degree attainment for
these groups continue to hover at roughly half the rates for whites.
Educational attainment among women increased rapidly over the past
decade, continuing a trend beginning in the 1970s. Their rates of
educational attainment have increased more rapidly than rates among men. By
1999, among 25- to 29-year-olds, women had higher rates than men for completing
high school and some college, and there were no differences in the percentages
of men and women with a bachelor's or higher degree.
THE ROAD AHEAD
We can all be proud of our colleges and
universities. They are preparing more of our youth from more diverse
backgrounds for a more challenging future than ever before. Two-thirds of our
high school graduates are immediately enrolling in college and trade school,
the most ever. And workers with a bachelor's degree earn 50 to 100 percent more
than do their peers with only a high school diploma.
Yet as we enter the 21st century, we face new challenges. We must
redouble our efforts to help all students who enter college or trade school
earn their degrees and certificates. More than one-third of students who enter
college or trade school drop out before they earn a certificate or degree. The
problem is particularly acute among minorities: 29 to 31 percent of African
Americans and Hispanics drop out of college in their first year, compared to 18
percent of whites.
In his Fiscal Year 2001 budget, President Clinton proposed new
critical investments in higher education, training, and youth opportunities as
part of his New Opportunity Agenda:
- The College Opportunity Tax Cut to allow families to save up
to $2,800 by deducting $10,000 in college tuition from their taxes. Investments
in human capital deserve the same favorable tax treatment as those in
equipment. The College Opportunity Tax Cut would save American families $30
billion over the next 10 years.
- More student aid, including a $716 million investment in
Pell Grants to increase the maximum grant to $3,500, and substantial
increases for Supplemental Educational Opportunity Grants and Federal
Work-Study.
- A $325 million investment in GEAR UP, a $125 million increase,
to mentor 1.4 million disadvantaged students on their way to college, and an
$80 million increase for the TRIO programs for low-income and first-generation
college students.
- College Completion Challenge grants to reduce college drop out
rates through increased scholarship aid and pre-freshman summer "bridge"
programs.
- The Dual Degree initiative to increase opportunities for
minority students to earn advanced degrees.
- Critical investments in elementary and secondary education.
The President asked Congress to reduce class sizes in the early grades,
modernize our school facilities, provide high-quality after-school and summer
school learning opportunities, and invest in quality teachers. All students
ought to be held to high academic expectations.
- Increase economic opportunities for disadvantaged youth. The
President's budget would increase our investment in Youth Opportunity Grants
from $250 million to $375 million, serving 25,000 more youth in high-poverty
areas. The budget would provide funds to employ 3,330 young high school
drop-outs to build houses through YouthBuild, increasing employment skills and
creating housing for low-income and homeless families. Finally, the President
asked Congress to increase our investment in Job Corps-the nation's largest and
most comprehensive residential education and job training program for
impoverished young people-to nearly $1.4 billion.
Over the past seven years, President Clinton and Vice President Gore
have implemented an unprecedented array of initiatives to expand college
opportunities. The new Hope Scholarship and Lifetime Learning tax credits
provide $3.5 billion in tax relief for college. The Direct Student Loan program
has saved students and taxpayers a total of $15 billion. Student loans are
cheaper and can be repaid based on the ability to pay.
AmeriCorps has given over 150,000 young people the chance to earn their
way through college by serving their country and their communities. The GEAR UP
initiative is raising college aspirations for 450,000 at-risk teenagers. And
more needy students receive larger Pell Grants scholarships.
We have made great progress toward enabling all of our citizens to
achieve the American Dream. All Americans deserve a chance at the economic
opportunity, cultural enrichment, and civic engagement that result from higher
education. By building upon our investment in education, we can ensure the
future prosperity of our nation.
APPENDIX
ENDNOTES
National Center for Education Statistics, The Condition of
Education 2000, Washington, D.C.: U.S. Department of Education, 2000, p.
34.
U.S. Department of Commerce, Bureau of the Census (1994),
Statistical Brief: More Education Means Higher Career Earnings, p.
2.
U.S. Department of Education, National Library of Education
(1999), College for All? Is There Too Much Emphasis on Getting a Four-Year
Degree?, pp 30-31.
The Condition of Education 2000, pp. 49, 149 (Table
32-1) (using three-year averages for low-income students, African Americans,
and Hispanics), 151 (Table 32-3).
National Center for Education Statistics, Digest of
Education Statistics 1999, Washington, D.C.: U.S. Department of Education,
2000, p. 156 (Table 142).
The College Board, "College Board Reports 'Decade of
Promise' for America's College-Bound Students As Record Numbers Take the SAT
and Advanced Placement Courses," August 31, 1999 (available at
< www.collegeboard.org/press/senior99/html/990831.html >)
[hereinafter "College Board SAT/AP Report"].
Unless otherwise noted, the data come from The Condition
of Education 1999, pp. 132, 140, 142, 152, 274-76.
The Condition of Education 2000, p. 156 (Table
38-3).
The Condition of Education 2000, pp. 15, 129 (Table
10-1).
McPherson, Michael S., and Morton Owen Schapiro (1998),
The Student Aid Game: Meeting Need and Rewarding Talent in American Higher
Education, p. 39.
The College Board (1997), Memory, Reason, Imagination: A
Quarter Century of Pell Grants.
Kane, Thomas J (1999), The Price of Admission: Rethinking How
Americans Pay for College, p. 127.
Student Lending Update, "Interview with James
Gathard, Senior Vice President for Business Executives for NationsBank
Education Loans," January 13, 1998.
Macro International (1999), Five-Year Assessment of the
Direct Loan program.
Aguirre International (1999), An Evaluation of AmeriCorps
Summary, pp. 3, 8.
U.S. Department of Labor, FY 2001 Budget Justifications
of Appropriation Estimates and Performance Plans for Committee on
Appropriations, p. TES-91.
U.S. Department of Education, National Library of Education
(1999), College for All? Is There Too Much Emphasis on Getting a Four-Year
Degree?, Washington, DC, pp 26, 30-31.
National Center for Education Statistics, The Condition
of Education 2000, Washington, D.C.: U.S. Department of Education, 2000, p.
34.
U.S. Department of Labor (1999), Futurework: Trends and
Challenges for Work in the 21st Century, Washington, DC, p.
vii.
Council of Economic Advisors (2000), Economic Report of
the President, p. 137.
The Condition of Education 2000, pp. 15, 129 (Table
10-1).
The Condition of Education 2000, p. 33.
Digest of Education Statistics 1999, p. 127 (Table
108); The Condition of Education 2000, p. 154 (Table 38-1).
Adelman, C. (1999), Answers in the Tool Box: Academic
Intensity, Attendance Patterns, and Bachelor's Degree Attainment,
Washington, DC: U.S. Department of Education.
Digest of Education Statistics 1999, p. 156 (Table
142).
The College Board, "More Schools, Teachers, and Students
Accepted the AP Challenge in 1998-99," August 31, 1999 (available at
< www.collegeboard.org/press/senior99/html/990831b.html >);
College Board SAT/AP Report.
College Board SAT/AP Report.
The Condition of Education 2000, pp. 49, 149 (Table
32-1) (using three-year averages for low-income students, African Americans,
and Hispanics), 151 (Table 32-3).
The Condition of Education 2000, p. 156 (Table
38-3).
The Condition of Education 2000, p. 56.
National Center for Education Statistics, The Condition
of Education 1999, Washington, D.C.: U.S. Department of Education, 1999, p.
34. |
