Bill Overview
Title: Higher Standards for Higher Education Act
Description: This bill requires the Department of Education, in its annual report on cohort default rates (generally, a percentage of how many current and former students default on their student loans in a fiscal year), to collect and report additional data for institutions of higher education with an endowment of $1 billion or more.
Sponsors: Rep. Van Duyne, Beth [R-TX-24]
Target Audience
Population: Students at institutions of higher education with an endowment of $1 billion or more
Estimated Size: 800000
- The bill targets students at institutions with endowments of $1 billion or more.
- We need to identify how many such institutions exist and their student populations.
- Typically, the top universities in the world have endowments of $1 billion or more.
- These universities often have large student bodies with a global presence, hence a large portion of international students might also be affected.
- The policy might influence decision making related to student loans and financial aid which applies to all students at these institutions, not just those from the US.
Reasoning
- The population segment targeted by this policy consists of students attending top-tier universities in the US with significant endowments, thus potentially influencing a large group of both domestic and international students.
- The policy intends to provide additional transparency on student loan defaults, which could affect student decision-making processes regarding loans and financial aid, bringing more informed choices.
- Given the budget limits, the policy's direct impact on individual wellbeing may vary from low to medium, depending on how information dissemination affects their financial decisions.
- Because the policy primarily centers on data collection and reporting, the immediate personal impact is likely informational rather than financial or social, potentially altering longer-term educational or financial planning.
Simulated Interviews
Undergraduate Student (New York, NY)
Age: 20 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The policy might make it easier for students like me to understand and anticipate potential loan default risks.
- I'm curious if it will affect the financial aid packages or the student loan options available to us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Graduate Student (Boston, MA)
Age: 23 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This may help in planning my financial obligations after school, especially if default data gets more detailed.
- Could influence the perception of financial risks associated with attending schools with high tuition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
University Administrator (San Francisco, CA)
Age: 30 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- The policy could alter student behavior regarding loans, possibly impacting enrollment figures.
- Understanding trends in student defaults could help us better plan financial aid offers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Undergraduate Student (Chicago, IL)
Age: 19 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- The more available information, the better we can prepare financially for post-graduation life.
- Not sure how immediate the benefits will be to us students.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Professor (Durham, NC)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- Having transparency on loan default data might reduce student stress over debt.
- Could shift how students and parents plan for financing education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
PhD Candidate (Ann Arbor, MI)
Age: 25 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Might affect future financial aid discussions.
- I don't expect it to have a direct impact on my current situation, but perhaps more for undergraduates who are more loan-dependent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 10 | 9 |
| Year 20 | 10 | 10 |
Prospective Student (Los Angeles, CA)
Age: 18 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- Knowing more about default rates may influence my school choice, based on financial outcomes.
- My parents are concerned about the debt burdens — seeing this data might help alleviate some worries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Parent (Palo Alto, CA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- Data transparency is always good, but will it change loan offerings or aid packages?
- Could help guide financial planning for families.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Financial Aid Officer (Houston, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- The policy could be crucial in how we advise students on taking out loans.
- An opportunity to refine loan advice based on historical default data.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 9 |
Policy Analyst (Washington, D.C.)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- The policy improves transparency and oversight in higher education finance.
- Likely to enhance government accountability on student loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $13000000 (Low: $9000000, High: $17000000)
Year 3: $14000000 (Low: $9000000, High: $18000000)
Year 5: $12000000 (Low: $8000000, High: $16000000)
Year 10: $9000000 (Low: $6000000, High: $12000000)
Year 100: $3000000 (Low: $1000000, High: $5000000)
Key Considerations
- The policy will primarily incur costs related to data management and reporting.
- Long-term benefits might include reduced student loan defaults and improved economic outcomes for students.
- Data collected might also inform policy and financial aid decisions at a federal level.