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�'7 have somethingtosay to everyfamfy listening to us tonqfa Your children can go on to college. Ifyouknowa
(Mdfirm a poorfamily, tell ber mttogive up—she can go ontocollege. Ifymknowaymngccmpkstm^ingwith
bills, worried tbey won't be abletosend their children to college, tell them nottogne up— their childrm can go on t
college. If you know somebody who's caught in a dead-endjob and afraid he can't afford the classes necessarytogz
better jobsfor the rest ofhis life, tell him mttogive tip— he can go on to college. Because ofthe things that havebee
(fone,wecannMkecollegeasunhxrsdmthe21stce^^
theface andfiitureofAmerica.''
President Bill Clinton
State ofthe Union Address
January 27, 1998
And, myfriends, that will change
�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.
1
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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-generationstudents 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-ofschool youth in high-poverty communities.
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�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.
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•
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 is a dominant determinant
of degree completion. And 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.
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•
Fewer students are dropping out of school: During the 1990s, around 11 percent 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.
Progress has been especially strong among African Americans, whose high school completion
rate now slightly exceeds the national average.
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•
More Americans are earning college degrees: Over 32 percent of 25- to 29-year-olds had
earned bachelor's or higher degrees in 1999, up from 27 percent in 1990. In particular, white
and African American women have seen their college opportunities grow.
8
•
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.
9
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.
-2-
�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 lowincome families— have opened the door to higher education for millions of students who could not
otherwise afford it. In 2001, 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 21 century— stepping confidently into the Information Age and an era of global economic
competition—we must expand postsecondary education opportunities for everyone.
st
•
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 tuidon 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 toward 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, it 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
attending a local technical college part-time (with a tuition of $1,200) to upgrade his computer
skills in the hope of changing jobs would save as much as $240 using the Lifetime Learning
credit.
The Clinton Administration has also dedicated itself to expanding scholarships for needy
students. We know that 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.
10
•
Pell Grant scholarships for low-income students are the federal government's single
largest commitment to equalizing college opportunities. Pell Grants— more targeted to
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�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 a college or career training.
11
•
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, we eliminated this funding shortfall— 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 give up to $4,000 scholarships 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 help 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.
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�MORE AFFORDABLE STUDENT LOANS
Many working families could not afford to pay for college without college loans. Although a
college education pays for itself in higher expected 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.
12
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 federal
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.
I n 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 can now repay their
loans as a share of their income and have saved $9 billion through lower interest rates and fees.
• New flexibility repaying their loans. 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 encourages college graduates to try a career in
public service.
• Lower interest rates. Students who have borrowed student loans 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 both 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. And 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 in 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 loans terms. A typical member of the Class of 2000 who consolidates
before July 1, 2000, will save over $1,500 on $20,000 in debt due to today's lower interest rates.
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�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 litde 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."
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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 Reagan Administration— 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.
I n sum, there was little competition in the student loan program in 1993. The Direct Loan
program gave students and schools a choice, injecting healthy competidon 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.
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�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 inidative 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 7 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.
th
•
Research on existing programs demonstrates the value of and the need for G E A R 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.
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�The Clinton Administration has also expanded the T R I O 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 communiues.
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.
15
•
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.
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•
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
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�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 Colleg? 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 tuidon 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 colleges' 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.
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�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; ther 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.
17
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.
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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, informationtechnology workers earned 78 percent more than workers in all industries combined— up from 56
percent above average in 1989.
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20
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.
21
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.
22
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�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.
23
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 AfricanAmerican and Hispanic students than any other pre-college indicator of academic resources.
24
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.
25
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. Fiftysix 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.
26
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.
27
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�CoUege Enrollment and Educational Attainment
H i g h 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 AfricanAmericans is enrolling in higher education
28
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.
29
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 mfen 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.
30
-12-
�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 onethird of students to enter college or trade school drop out before they earn a certificate or degree.
The problem is particularly acute minorities: 29 to 31 percent of African Americans and Hispanics
drop out of college in their first year, compared to 18 percent of whites.
31
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 andfirst-generation-collegestudents.
• College Completion Challenge grants to reduce college drop-outs 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 highquality 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 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.
-13-
�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 inidative 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.
-14-
�APPENDIX
-15-
�ENDNOTES
1
National Center for Education Statistics, The Ganditim ofEducation 2000, Washington, D.C: U.S. Department of
Education, 2000, p. 34.
U.S. Department of Commerce, Bureau of the Census (1994), Statistical Britf: More Education Means Higher Career
Earnings, p. 2.
U.S. Department of Education, National Library of Education (1999), Collegefor All? Is There Too Much Emphasis on
Gettinga Four-Year Degree?, pp 30-31.
The Condition ofEducation 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, Digst 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 Ganditim of Education 1999, pp. 132, 140, 142, 152, 274-76.
The Condition ofEducation 2000, p. 156 (Table 38-3).
Tlx Condition of Education 2000, pp. 15, 129 (Table 10-1).
McPherson, Michael S., and Morton Owen Schapiro (1998), The Student Aid Gone: Meeting Need and Rewarding Talent in
American Higher Education, p. 39.
The College Board (1997), Memory, Reason, Imagimtion: A Quarter Century of Pell Grants.
Kane, Thomas J (1999), The Price ofAdmission: Rethinking How Americans Payfor 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), Fize-Year Assessment of tlx Dimt Loan program.
Aguirre International (1999), A n Evaluation ofAmeriCorps Summaiy,pp. 3, 8.
U.S. Department of Labor, FY 2001 Budget Justifications ofAppropriation Estimates and Performance Plansfor Gmrrnttee on
Appropriations, p. TES-91.
U.S. Department of Education, National Library of Education (1999), CdlegejbrAll? Is There Too Much Emphasis on
Gettmga 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 Qiallengesfor Work in the 2 f Century, Washington, DC, p. vii.
Council of Economic Advisors (2000), Economic Report ofthe President, p. 137.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
2 0
21
The Condition of Education 2000, pp. 15, 129 (Table 10-1).
The Condition of Education 2000, p. 33.
Digxt 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.
Di&st 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.
22
2 3
24
25
2 6
2 7
CoUege 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 ConditKm ofEducation 2000, p. 156 (Table 38-3).
The Condition of Education 2000, p. 56.
National Center for Education Statistics, The Condition ofEducation 1999, Washington, D.C: U.S. Department of
Education, 1999, p. 34.
28
2 9
3 0
31
-20-
�"The Infimrntion Age is,firstandfbremost, an education age, in which education must start at birth and continue
tbmughoiaa lifetime.... Last year I proposed, andyou passed, 220,000 new Pdl Grant scholarshipsfor deserving
students. Stiufem loam, already less expenshe and easier to repay, ncwymgrt
Familiesall
over America now can put their savings into new tax-free education IRAs. And this year, for thefirst two years of
college, families will get a $1,500 tax credit— a HOPE Scholarship thatwill cover the cost cfmost community colle
tuition. Andforjuniorand senioryear, gradmte schod, and job training, thete k a lifk^
You did
that andyou should be very proud ofit.
"And because ofthese actions, Ihavesomethingtosaytaeveiyfamilylisteningtoiistonigfa Yourchildrm can gp on
tocollege. IfymfmjwachMjnmapocrfamily,teUhermttogizz
Ifyouknowa
young couple struggling with bills, worried they won't be able to send their childrm to colleg?, tell them not to give
their childrm can gp on to eollegp. If you know somebody who's caught in a dead-endjob and afraid he can't afford
dosses necessary to get better jobsforthe rest ofhis life, tetthimmt to give up—he can goon to college. Becauseofthe
things that have been dom, we can make college as universal inthe 21st century as high school is today. And, my
friends, thatwiU change theface andfiitureofAmerica."
President Bill Clinton
State ofthe Union Address
farmory 27, 1998
(
J
�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. In the workplace, a college degree is worth some
$17,500 a year more than a high school diploma, on average. An advanced degree is worth $40,000
more than a high school diploma. The real rate of return on a college investment is 12 percent—
roughly twice the historical average of the stock market.
1
2
As a country, we need to help America's parents pay for a college education for their children, and
pay for the continuing post-secondary education that they need during a lifetime. For seven years,
President Clinton and Vice President Gore have sought to make college or trade school 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, and the Lifetime Learning credit provides up to $1,000
for juniors and seniors, graduate students, and adults seeking job training. Over 3.8 million
needy students receive up to $3,300 in Pell Grant scholarships, $1,000 more than in 1993. Since
1994, over 150,000 AmeriCorps participants have earned nearly $400 million for college while
serving their communities.
More affordable student loans. The new Direct Student Loan program— established in
1994— bypasses federally guaranteed lenders to deliver loans to students faster, easier, and
cheaper. Together, students and taxpayers have already saved $15 billion through student loan
reforms. This Administration has introduced lower fees and interest rates that have saved the
average borrower over $500; more flexible repayment terms, including income-contingent
repayment; and a restored tax deduction for student loan interest.
New paths to college and successful careers. The new GEAR UP initiative raises
expectations and creates college opportunities for over 450,000 disadvantaged children through
partnerships between high-poverty middle schools, universities, and communities. The Schoolto-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. AmeriCorps education awards and a one-third increase in work-study jobs
has allowed hundreds of thousands of Americans to earn money for college. Our investment in
the TRIO to help low-income, first-generation students succeed in college has increased by twothirds since 1993, to $645 million. And Youth Opportunity grants make possible
comprehensive employment and training assistance to 75,000 out-of-school youth in highpoverty communities.
^
The seven-year Clinton-Gore commitment to opening the doors of colleg^nay be)the largest
investment in higher education since the G.I. BUI. College is affordable foralfAmericans, and more
and more of us are benefiting from it. The evidence is in:
•
More of us are going to college: 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-
-1-
�income and minority students continue to go straight to college at significantly lower rates than
high-income and white students, the gaps have narrowed considerably since the 1980s and
1970s.
3
•
More of us are earning college degrees: over 32 percent of 25- to 29-year-olds had earned
bachelor's or higher degree in 1999, up from 27 percent in 1990. In particular, white and black
women have seen their college opportunities grow.
4
•
We are becoming lifelong learners: 50 percent of adults participated in formal learning in the
year prior to a 1999 survey, up from 38 percent in 1991.
5
Below, this report describes President Clinton's efforts to expand college scholarships, make student
loans more affordable, and close the college opportunity gap. It describes the impact these policies
have had on college preparation, enrollment, and completion. Finally, it outlines the challenges that
continue to face all of us who care about equalizing college opportunities.
-2-
�MORE COLLEGE SCHOLARSHIPS
Since 1993, new college tax credits and national service programs— as well as the greater availability
of need-based grants— have opened the door to higher education for millions of students who could
not otherwise afford it. More financial aid is available for college than ever before— over $60 billion
in 2001, including the Hope Scholarship and Lifetime Learning tax credits, compared to only about
$25 billion in 1993— and students are going to college in record numbers.
6
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 middleclass Americans. Today, as we enter the 2 r century— stepping confidently into the Information
Age and an era of global economic competition— we expand postsecondary education opportunities
for everyone.
t
President Clinton recognized this reality in 1996 when he 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." To accomplish that goal, he proposed the Hope Scholarship— 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, making at least two years of college affordable for everyone.
Even as the first years of college grow in importance, so too does lifelong education and worker
training. Also in 1996, President Clinton proposed the Lifetime Learning tax credit proposal. This
$1,000 credit reimburses families for 20 percent of their tuition and fees for college, graduate study,
or job training up to $5,000 per family. Starting in 2002, it will reimburse families for 20 percent of
their costs up to $10,000, for a maximum value of $2,000.
One year later, Congress responded to the President's proposals and enacted the Hope Scholarship
and Lifetime Learning tax credit. As a result, an estimated 4.8 million families received $3.5 billion
in tax relief for education expenses in 1998, the first year they were available.
For instance, a family earning $60,000 with a child at a community college (with a tuition of $2,000)
and a 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 $32,000 attending a local technical college part-time (with a tuition of $1,200) to upgrade his
computer skills in the hope of changing jobs would save as much as $240 using the Lifetime
Learning credit.
The Clinton Administration has also dedicated itself to expanding scholarships for needy students.
We know that 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 will decrease the enrollment
of lower-income students by about 1 percent.
7
The cornerstone of federal aid for students is the Pell Grant scholarship program for needy
students. Pell Grants— more targeted to needy students than any other of the Department's
programs— help ensure financial access to postsecondary education for all students. When
-3-
�President Clinton took office in 1993, the maximum Pell Grant was $2,300. Today, 3.8 million
students receive grants of up to $3,300.
In addition, the Federal Supplemental Educational Opportunity Grants (SEOG) gives up to $4,000
per academic year to needy undergraduates. This year, 1.1 million students will receive nearly $800
million in SEOG scholarships.
Finally, since 1994, AmeriCorps allowed more than 150,000 Americans to help their community
while earning help paying 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 volunteers achieve their dream of a college
education.
-4-
�MORE AFFORDABLE STUDENT LOANS
Although a college education pays for itself in higher expected earnings many dmes over, immediate
liquidity problems may be a major obstacle for many families.
8
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.
Worse, lenders and guaranty agencies faced financial disincentives to prevent defaults or spend
federal dollars prudently.
Different lenders often had different paperwork, procedures, and schedules, causing confusion and
administrative burdens for students and schools. And lenders and guaranty agencies couldn't be
counted on to report reliable financial data to the government.
But in the Student Loan Reform Act of 1993, President Clinton signed the Direct Student Loan
program into law, revolutionizing college loans. Direct lending reduced paperwork for applicants
and gave graduates new flexibility repaying their loans. It encourages students to take a chance at
college or a career in public service by allowing them to repay their loans as a share of their income.
And all direct-loan borrowers have just one account with a single point of contact.
To schools, direct lending offered a single set of procedures, faster and more reliable delivery of
funds, less paperwork, electronic loan processing, and an emphasis on customer service. Within
three years, roughly one-quarter of all schools— over 1,200 of them— chose to leave the guaranteed
loan program and join the Direct Loan program.
The Direct Loan program has created large savings for taxpayers by eliminating subsidy payments to
lenders. So far, taxpayers have saved over $4 billion. Federal subsidies for banks and guaranty
agencies have also been pared down, already saving taxpayers $2 billion.
Thanks in part to direct-loan savings, loan fees were reduced from up to 7 percent of loan principal
in 1993 to up to 4 percent today, saving students $4 billion so far. And in 1999, in recognition of
widespread discounts available on guaranteed student loans, the Administration reduced direct loan
fees to 3 percent.
In addition, students who have borrowed student loans 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.
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. Surveys show that school satisfaction with the
guaranteed loan programs has increased every year since 1994.
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.
-5-
�To be perfectly honest, as a private enterprise we thought we were doing almost an A-plus job.
When we stepped back a litde 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."
9
And a 1999 independent assessment concluded that, "Virtually no one disputes that the operation of
n alternative loan program has produced a competition that inspired innovation and service— to the
benefit of all borrowers and schools."
10
Financial management has improved. 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. At the same time,
collections on defaulted loans have tripled to $3 billion.
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. As a result, today we
have two leaner, more competidve, customer-focused programs. Student loan reform has been good
news for students, families, schools, and taxpayers.
Finally, in 1997 President Clinton complemented these student loan reforms by signing a tax
deduction for student loan interest into law. This legislation— which reinstated a provision that
had been repealed in the Reagan Administration— 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.
-6-
�NEW PATHS TO COLLEGE AND SUCCESSFUL CAREERS
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.
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 Awareness and Readiness for Undergraduate Programs— with broad bipartisan support.
This academic year, its first, the GEAR UP initiative gives hope, raises expectations, and creates
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, 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 7 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
drop-outs among low-income students.
th
Evaluation research on existing programs demonstrates the value of and the need for the GEAR UP
approach. I Have a Dream 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 I H A D students in the class of 1996 graduated from high school, as did 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, a network of initiatives
designed to help low-income,first-generationcollege, and disabled individuals achieve academic
success beginning in middle school, throughout college, and into graduate school. Named TRIO in
the late 1960s after its first three programs— Upward Bound, Talent Search, and Student Support
-7-
�Services— TRIO now serves 730,000 students through eight programs. Since 1993, funding for the
programs has increased by two-thirds, from $388 million to $645 million.
Upward Bound, for example, provides intensive mentoring and academic enrichment throughout
high school to primarily low-income orfirst-generationcollege-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 andfinancialaid
counseling primarily for adults seeking to return to school. Student Support Services provides
tutoring and counseling help students stay in college. Talent Search provides academic, career, and
financial counseling to disadvantaged students with the potential to succeed in higher education.
And 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.
Early exposure to career opportunities can also help ensure that 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 has provided seed money to help every State develop programs that
broaden young people's career options, make learning more relevant, and promote successful
transitions to college and careers.
Federal work-study funds have increased 43 percent since 1993. This year, the $934 million in workstudy funds will create jobs for one million college students, over 250,000 more than in 1993.
Work-study jobs both expand opportunity and teach responsibility and employment skills.
AmeriCorps also builds paths to college. A recent evaluation found that at least three-quarters of
AmeriCorps volunteers would better use school to 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.
11
Authorized by the Workforce Investment Act of 1998, 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 postsecondary enrollment. Over 58,000 youth are currendy served.
12
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 U.S. Department of Education's new College Opportunities On-Line (COOL) web site 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 availablefieldsof
study, and contact information for the colleges' departments.
The Administration has made additional efforts to help low-income students prepare for college.
This year, the Administration's Advanced Placement Incentive Program will provide $15 million in
competitive grants to 40 states in order to help schools encourage low-income students to take AP
classes and tests. Schools use the funds to pay test fees for low-income students. Schools may also
use funds for 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.
-9-
�[ML
S-G&c
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 student aid and benefits of college 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 Postsecondaty Education
A 1999 literature review concluded that the consensus real rate of return on a college investment is
12 percent— roughly twice the historical average of the stock market. These studies considered
only earnings; considering other benefits and additional social value might triple the value of higher
education.
( j i^-vt^na Ctj^t",13
^
1
Moreover, the economic power of higher education is increasing 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 earned twice as mudo in 1998 as women with no more than a high school
diploma. Similarly, young adults with a high school diploma (but no college) earned 30 percent
more than young adults who dropped out of high school.
14
The 20 occupations with the highest earnings all require at least a bachelor's degree. And
throughout the economy, jobs that require a college degree are growing twice as fast as others.
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 in 1989.
15
16
A
Higher levels of education are associated not only with greater economic rewards, but also with a
greater tendency to continue learning 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. Education leads to further education: In 1999, 65 percent of adults with a
bachelor's or higher degree participated in a formal learning activity within the past 12 months, as
did 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.
17
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.
18
-10-
�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 blacks, whose high school completion rate now slighdy
exceeds the national average. However, the dropout rate among Hispanic youth remains
disturbingly 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.
19
College Preparedness
According to U.S. Department of Education research, academic intensity and quality of one's high
school curriculum is a dominant determinant of degree completion. Strength of curriculum is a
better predictor of college completion than test scores or class rank/GPA , and the impact of the
high school curriculum is far more pronounced— and positively— for African-American and
Hispanic students than any other pre-college indicator of academic resources.
20
As a result, 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.
21
Advanced Placement test-taking is at an all-time high. In 1999, over 704,000 students took collegelevel AP exams; 55 percent of the test-takers were women and 30 percent were minority students,
including the highest proportions of black 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 with college-level curriculum than ever before.
22
The increasingly rigorous coursework taken by high school graduates is reflected in rising scores on
the Scholastic Assessment Test. 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.
23
Despite these gains, high school graduates from low-income families remain less likely to be
academically qualified to enter four-year institutions than their peers from higher-income families.
Indeed, high-income graduates are almost twice as likely as middle-income graduates and four times
as likely as low-income graduates to be very highly qualified for four-year college admission.
Moreover, Asian/Pacific Islander and white graduates are more likely than black and Hispanic
graduates to be at least minimally qualified for four-year college admission, reflecting group
disparities in family income levels and parents' educational attainment.
24
-11-
�College Enrollment and Educational Attainment
Consistent with their strong preparation for college, high school graduates are going to 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 the 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 blacks and Hispanics go
straight to college at lower rates than whites. Nevertheless, the gaps have narrowed considerably
since the 1980s and 1970s.
25
The percentage of 25- to 29-year-olds who have completed at least some college has increased from
52 percent in 1990 to over 66 percent in 1999. Among Hispanics, the percentage increased from 40
percent to over 50 percent during this period, and among blacks, the percentage increased from 44
percent to nearly 58 percent. Black women have made especially impressive gains: In 1999, over 62
percent had completed some college, up from 45 percent in 1990.
26
Similarly, 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. Black women have also made substantial progress; aroimd 19 percent
had completed a bachelor's degree in 1999, up from 13 percent to 14 percent at the start of the
decade. However, black 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.
27
Educational attainment among women increased rapidly over the past decade, continuing a trend
beginning in the 1970s. Indeed, 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.
28
Nevertheless, at the highest levels of educational attainment, the gender gap remains. Women
earned less than 41 percent of all doctoral degrees conferred in the 1996-97 academic year.
Moreover, they earned only 41 percent of master's degrees and 24 percent of doctorates conferred
in mathematics, 28 percent of master's degrees and 16 percent of doctorates in computer and
information sciences, and 18 percent of master's degrees and 12 percent of doctorates in
engineering.
29
-12-
�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. Yet as we enter the 21st
century, much remains to be done. We must redouble our efforts to close the persistent
opportunity gap that faces children from low-income and minority communities.
This year, President Clinton proposed the College Opportunity Tax Cut to allow families to save up
to $2,800 by deducting $10,000 in college tuition from their taxes. By recognizing that investments
in human capital deserve the same favorable tax treatment that businesses receive on capital
investment, the Opportunity Tax Cut would save American families $30 billion over the next ten
years.
The President's Fiscal Year 2001 budget also calls for 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. The President asked for $325 million for GEAR UP,
a $125 million increase, to mentor 1.4 million disadvantaged students on their wary to college, and an
$80 million increase for the TRIO programs. President Clinton also proposed College Completion
Challenge grants to reduce college drop-outs and a Dual Degree initiative to increase opportunities
for minority students to earn advanced degrees.
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. It would increase
Youthbuild funding to $75 million to employ 3,330 young high-school dropouts to build houses,
both increasing employment skills for youth and 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 targeted at 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 every year, more needy students receive larger Pell Grants
scholarships.
We have made great progress toward building equal opportunity for all of our citizens to achieve the
American Dream. It is imperative that we continue to build on that progress.
-13-
�ENDNOTES
1 The CoUege Board (1999), Trends in Colleg Pricing 1999, p. 20.
U.S. Department of Education, National Library of Education (1999), CollegeforAll? Is There Too Much Emphasis on
Gettinga 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, blacks, and
Hispanics), 151 (Table 32-3).
The Cbnditwnof Education 2000, p. 156 (Table 38-3).
s The Condition of Education 2000, pp. 15, 129 (Table 10-1).
Unless otherwise noted, the data come from The Condition of Education 1999, pp. 132, 140, 142, 152, 274-76.
McPherson, Michael S., and Morton Owen Schapiro (1998), The Student Aid Game: Meeting Need and Rewarding Talent in
American Higher Education, p. 39.
Kane, Thomas] (1999), The Price ofAdmission: Rethinking How Americans Payfor 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 study
U.S. Department of Labor, FY 2001 Budget Justifications ofAppropriation Estimates and Performance Plansfor Committee an
Appropriations, p. TES-91.
U.S. Department of Education, National Library of Education (1999), CollegeforAll? Is There Too Much Emphasis on
Gettmga Four-Year Degree?, pp 26, 30-31.
National Center for Education Statistics, The Condition ofEducation 2000, Washington, D.C.: U.S. Department of
Education, 2000, p. 34.
U.S. Department of Labor (1999), Futurework: Trends and ChallengesforWork in the 21" Century, p. vii.
Council of Economic Advisors (2000), Economic Report ofthe President, p. 137.
The Condition of Education 2000, pp. 15, 129 (Table 10-1).
The Condition of Education 2000, p. 33.
National Center for Education Statistics, Digest ofEducation Statistics 1999, Washington, D.C: U.S. Department of
Education, 2000, p. 127 (Table 108); The Condition of Education 2000, p. 154 (Table 38-1).
Adelman, C. (1999), U.S. Department of Education, Answers in the Tool Box: Academic Intensity, Attendance Patterns, and
Bachelar's Degree A ttainment.
1 Digst of Education Statistics 1999, p. 156 (Table 142).
The CoUege Board, "More Schools, Teachers, and Students Accepted the AP ChaUenge in 1998-99," August 31,1999
(available at < www.coUegeboard.org/press/senior99/html/990831b.html >) CoUege Board SAT/AP Report.
CoUege Board SAT/AP Report.
The Condition of Education 2000, p. 47.
The Condition of Education 2000, pp. 49, 149 (Table 32-1) (using three-year averages for low-income students, blacks, and
Hispanics), 151 (Table 32-3).
The Condition ofEducation 2000, p. 155 (Table 38-2).
The Condition of Education 2000, p. 156 (Table 38-3).
The Condition ofEducation 2000, p. 56.
Tlx Condition of Education 2000, p. 153 (Table 37-1).
2
I
4
6
7
8
9
10
II
12
11
14
15
16
17
18
19
20
2
22
23
24
25
26
27
28
29
-14-
�Cover
ED (OPA)
Executive Summary
1-2 pages, Kvaal
• Clinton Quote - Opportunity for All
• Rewards to Postsecondary Education
• Clinton Approach:
- Scholarships (Hope, Lifetime Learning, Pell, AmeriCorps)
- Loans (Direct Lending, income-contingent, lower fees and interest rates)
- Early Preparation (GEAR UP, School-to-Work, TRIO, AmeriCorps, Work-Study,
Youth Opportunity)
• College Participation is Increasing
Section One - Clinton Accomplishments
A.
Student Aid
• Hope
• Lifetime Learning
• Direct Loans
• Pell
• AmeriCorps
• SEOG
• Loan fees and interest rates, ICR
• Student loan defaults
• OCR
3-4 pages, Kvaal
B.
Preparing for College
• GEAR UP
• TRIO
• Think College Early
• School-to-Work
• College Opportunities Online
• National College Week
2-3 pages, Kvaal
C.
K-16 Partnerships
• Teacher Preparation
• Standards
• Others??
1-2 pages, ED (Sullivan?)
Section Two - Progress over Eight Years
•
High School - Enrollment in Challenging Courses
By race, income, gender
5-6 pages, ED (NCES? PES?)
�High School Graduation Rates
By race, income, gender
SAT and ACT Participation and Scores
By race, income, gender
College Enrollment Rates by Sector
By race, income, gender
College Completion Rates by Sector, Advanced Degrees
By race, income, gender
Value of a College Degree
By race, income, gender
Slowing Rate of Tuition Increases
Section Three - Conclusion and the Road Ahead
•
•
•
•
1-2 pages, Kvaal
Budget Increases for Pell, Work-Study, GEAR UP, TRIO, etc.
College Opportunity Tax Cut
College Completion Challenge Grants
Dual Degrees Initiative
Appendix
10-15 pages, ED (NCES? PES?)
Tables based upon infonnation presented in Chapter One - Expanded from Condition of
Education 2000
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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Lowell Weiss
Creator
An entity primarily responsible for making the resource
Lowell Weiss
Office of Speechwriting
Date
A point or period of time associated with an event in the lifecycle of the resource
1997-2001
Is Part Of
A related resource in which the described resource is physically or logically included.
<a href="http://clinton.presidentiallibraries.us/items/show/36408">Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7431951">National Archives Catalog Description</a>
Identifier
An unambiguous reference to the resource within a given context
2006-0470-F
Description
An account of the resource
This collection consists of the speechwriting files of Lowell Weiss. Lowell Weiss worked as a Special Assistant to the President, Presidential Speechwriter from June 1997 - August 2000. Weiss traveled and wrote speeches for President Clinton on domestic issues. His speeches cover a broad array of topics. Major issues he wrote on concern the environment, education, the economy, and race relations. He wrote weekly radio addresses; commencement speeches; and remarks for bill signings, events, and conferences. The records consist of speeches, drafts, memoranda, correspondence, schedules, event and travel arrangements, notes, articles, and printed email.
Provenance
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Clinton Presidential Records: White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Extent
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464 folders in 36 boxes
Text
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Original Format
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Paper
Dublin Core
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Title
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Speech Drafts - Michael Waldman - Education - Report
Creator
An entity primarily responsible for making the resource
Office of Speechwriting
Lowell Weiss
Identifier
An unambiguous reference to the resource within a given context
2006-0470-F
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 33
<a href="http://clinton.presidentiallibraries.us/items/show/36408">Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/20761205">National Archives Catalog Description</a>
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Medium
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Preservation-Reproduction-Reference
Source
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20761205
42-t-7431951-20060470-F-033-013-2015