The Chronicle of Higher Education Feburary 3, 2012 Senate Republicans Question Obama's Plan to Tie Federal Aid to Tuition By Kelly Field Senate Republicans pushed back against President Obama's college-affordability agenda<http://chronicle.com/article/President-Puts-College-Costs/130503/> at an education-committee hearing Thursday, expressing doubts about the administration's plans to reward colleges and states that hold down tuition and maintain their higher-education budgets. "I don't believe the government's role is to pick winners and losers," said Sen. Richard Burr of North Carolina, explaining that he was uncomfortable "shifting the determination of affordability to Washington." Later, during a question-and-answer session with the under secretary of education, Martha J. Kanter, Mr. Burr asked whether states that trim their higher-education budgets after years of steady growth would be spurned from a proposed $1-billion grant competition<http://www.whitehouse.gov/the-press-office/2012/01/27/fact-sheet-president-obama-s-blueprint-keeping-college-affordable-and-wi> for states that keep costs under control. "I find it incredible that we might exclude a state that ticks up a little more than others because they have held [tuition] down for so long," he said. Ms. Kanter responded that the administration would judge states based on their "long-term policies in place to stabilize tuition"-suggesting that states would not be excluded from the grant competition on the basis of a one-year cut. The president's plan, unveiled a week ago in a fiery speech at the University of Michigan at Ann Arbor, would raise the Perkins Loan program's budget from $1-billion to $8-billion, offering additional aid to colleges that restrain tuition growth. It would also provide $1-billion to states that maintain "adequate" spending on higher-education, among other things. His plan would keep the interest rate on student loans at 3.4 percent for an additional year and expand other financial-aid programs. During the question-and-answer session, Sen. Michael B. Enzi of Wyoming, the committee's top Republican, asked Ms. Kanter where the money for the president's proposals would come from, noting that the Congressional Budget Office has estimated that simply extending the 3.4-percent interest rate for an extra year would cost $5.9 billion. Ms. Kanter said the answers would come in the president's budget, due out February 13, but she assured senators that the administration would find offsets for the spending. "This won't cost taxpayers more," she said. Mr. Enzi asked whether the Perkins Loan plan would provide allowances for colleges that raise tuition in response to declining state subsidies, arguing that "colleges don't have control" over state spending decisions. Ms. Kanter didn't answer directly, but she said the administration hoped to forestall future budget cuts through its $1-billion "Race-to-the-Top"-style grant program for higher-education. "We can't restrict tuition increases-that's not the role of the federal government," she said. "But we want to provide incentives to states" to provide stable funds for higher education. Senators from both parties challenged the administration to do more to rein in federal regulation, arguing that compliance costs are driving up college tuition. Sen. Lamar Alexander, Republican of Tennessee, who has had a lonely crusade to streamline federal regulations, suggested a "Race to the Top" contest for the government, with agencies competing to eliminate the most regulations. Ms. Kanter reminded senators that the Obama administration has directed all federal agencies to scrub their regulations, and said she has talked to over 100 college presidents and associations about what to cut first. But that answer didn't satisfy Sen. Barbara Mikulski, Democrat of Maryland, who demanded to know what the administration was doing "now!" When Ms. Kanter tried to respond, the senator interrupted repeatedly, asking "what three steps" the administration was taking. Ms. Kanter gamely cited the department's effort to reduce the number of items that colleges and states must complete on the annual federal survey of teacher-preparation programs. Senate Democrats, not surprisingly, were generally supportive of the president's proposals, praising his efforts to incentivize colleges and states to bring costs under control. "I certainly agree with him that we need bold action to address the spiraling costs of higher education and to promote college success," said Sen. Tom Harkin of Iowa, the committee's chairman, in an opening statement. "This is one of those issues that affect all Americans." Mr. Harkin said the hearing would be the first of several the committee would hold on the topic of college affordability. SANDRA M. PHOENIX Executive Director HBCU Library Alliance sphoenix@hbculibraries.org<mailto:sphoenix@hbculibraries.org> www.hbculibraries.org<http://www.hbculibraries.org/> 404.592.4820 Skype:sandra.phoenix1 1438 West Peachtree Street NW Suite 200 Atlanta, GA 30309 Toll Free: 1.800.999.8558 (Lyrasis) Fax: 404.892.7879 www.lyrasis.org<http://www.lyrasis.org/> Honor the ancestors, honor the children.